Bitcoin is now a major player in the online casino business, operators like BitStarz bitcoin casino is one of the first sites to offer it as a deposit and cash out method. A feature that makes Bitcoin very appealing is that it allows the user to get around exchange rates and it’s not confined by restrictions imposed by jurisdictions.
The online gambling industry and Bitcoin is a perfect example of a symbiotic relationship. Many online casinos now accept the cryptocurrency as a digital payment. So much so that during the months of February and March 2017 more than $4,000 in bitcoins were wagered per minute.
”Bitcoin gambling is just the tip of a huge cryptographic iceberg which is distracting players and operators from something far more interesting.” James Fuller
Fuller is of the opinion that Ethereum is the ‘bleeding edge’ of online gambling. He says that many online casinos have a ‘fear of missing out’ when it comes to Bitcoin and firmly believes that Ethereum’s smart contract technology might rewrite the industry. Slowly but surely
Bitcoin is replacing fiat currency betting because the anonymity and security it offers is far superior. As we speak a huge paradigm shift is already taking place, however, not only on Bitcoin but also on the back of Ethereum.
Bitcoin is Unique
Another unique feature about Bitcoin is that it’s extremely difficult to counterfeit because it’s not distributed by a central authority. As a result it cannot be manipulated. Other cryptocurrencies competing against Bitcoin are Ethereum, Litecoin and Monero, each offers the user its own advantages.
Bitcoin technology is now being embraced by banks and governments the world over, by using this technology their sole purpose is to create their own centralized cryptocurrencies. Another feather in the cap of Bitcoin is that every single transaction made on the blockchain can be traced. The user’s identity is not disclosed making it the perfect deposit method for gamblers. Unfortunately it’s also being used by criminals to purchase drugs online and money laundering. This is why governments are trying to regulate Bitcoin in a bid to make it an unlikely tool for criminals to further their own ends.
Thanks to Bitcoin or any other cryptocurrency cash transfers between the online casino and the player has never been easier. Through the use of private and public keys transfers are initiated with enhanced security features. The processing fees associated with each transaction is small making it a far more attractive proposition than wire or credit card transfers. Despite having a slew of positives cryptocurrency transfers has one problem.
It does not have a central repository because it is virtual which can result in the user’s digital currency balance being wiped out should the user’s computer crash. This is why it’s imperative to save all copies of every transaction. Another minor draw back is that the price of Bitcoin fluctuates on a daily basis.
What sets Bitcoin apart from any other currency is that its code is available for public audit and no middleman. Compared to credit card users who rely on banks they’re further bogged down by costly withdrawal fees. The digital currency is decentralized and fees associated with it are minute, in short Bitcoin has become the proverbial ‘viral machine’. A decentralized payment system allows online casino and bitcoin sportsbook players to send currency across the Internet without the use for a trusted third party. In most cases transactions are cheap and free of any hassles.
”With lower costs comes a lower house edge. It’s possible that within the foreseeable future, smart contract gambling applications will have a zero percent house edge. It’s difficult to contemplate what a gambling industry with zero percent house edge would mean for players and operators.”
Cryptocurrencies the Future of Online Casino Gambling
”Online gambling represents at least 10x the transaction volume of Silk Road and the other Bitcoin drug marketplaces.”
Bitcoin has not only disrupted traditional forms of online gambling but new facets of it are being introduced to the market. It’s believed that players will be able to bet on future events using ”wisdom of the crowds” methods. This will enable bettors to make predictions with pinpoint accuracy and if they’re correct they’ll earn real value tokens.
Bitcoin allows privacy-centric gambling along with faster-than-ever casino account fund transfers such as paying out jackpots and player winnings. Online gambling is a very lucrative industry that had a total market cap of $45 billion in 2016, so far Bitcoin only captured a tiny fraction of this market.
The use of Bitcoin at online casinos has increased exponentially year-on-year. Since operators accepted Bitcoin as a withdrawal method in 2013, Bitcoin betting accounted for more than 50 percent of all Bitcoin transactions.