Introduction
Gambling with cryptocurrencies such as Bitcoin, Ethereum, Litecoin and many more, has become the newest trend that is not likely to stop anytime soon. Crypto transactions are based on Blockchain networks, a technology that has become a game-changer in various industries. With this Blockchain technology, various online platforms such as casinos and betting sites are taking their platforms to the next level with the multiple benefits that come with cryptocurrency usage. With such an evolution, Blockchain and cryptocurrency is bound to have a substantial impact in the online gambling industry as well as various other industries.
What is blockchain?
Blockchain is a technology used to track transactions through distributed public ledgers around the world. The transactions may be values of any asset such as houses, software, intellectual property, patents, cars, etc. The most common use of Blockchain technology is for virtual or digital currency which has become exceedingly popular in the past five years, incorporating cryptocurrencies such as Bitcoin, Ethereum, Litecoin. In a secured and automated manner, Blockchain technology maintains the ledger or record of all the transactions which are stored as ‘blocks’ and added to the current ‘chain’ and hence, the term ‘blockchain’.
In addition to this, the Blockchain network provides a decentralised environment that rejects all centralised controls and at the same time, serves huge transparency and privacy requirements. Thus, by introducing blockchains in the online gambling industry, it delivers verified and substantial records across distributed ledgers that cannot be manipulated by anyone inside or outside the system.
Why did people start gambling with Bitcoin?
Essentially, the main reason why people across the world started gambling with Bitcoin and other cryptocurrencies is that they believe that their money is always used and stored in the safest and most secure way. Investing in any online casino with fiat currency is still a challenging task for most players as they fear being hacked by criminals. This fear is eliminated with the introduction of cryptocurrencies and Blockchain technology as now players do not require real cash money to enjoy the perks of an online casino. All they need to do is purchase digital currencies from any exchange, store them in their crypto wallet and use or invest in any platform they want to.
Benefits of Gambling with Bitcoin
The promising benefits of gambling with Bitcoin are mentioned below –
- Validity and Security – Using Blockchain technology offers a certain degree of security because of its inbuilt features. Every transaction gets added to the distributed ledger. As the ledger is decentralised, each system in the crypto Blockchain requires to be acknowledged and validated which reduces false transactions. People gambling with Bitcoin do not need to register or validate their identity on the gambling website or provide their financial information such as bank or credit card details. The simple blockchain process allows players to deposit crypto which is validated immediately so that they can start playing instantly.
- Anonymity and Privacy – A major concern for most gamblers is revealing their personal and financial information to online casinos and gambling websites. However, platforms that use cryptocurrency offers privacy and anonymity which means players can gamble using Bitcoin without the necessity of detailed information since the instant transactions are validated instantly through public blockchains.
- Cost-effective and Near Instant – Cryptocurrency and Blockchain technology in the gambling industry provide efficiency with instant transfers. Cryptocurrency is decentralised which means there is no centralised authority that inspects the transaction’s validity. Moreover, there are no third-party banks or financial institutions that interfere in crypto transactions. This makes the transactions instant and cost-effective compared to other payment methods such as bank transfers and credit card payments.
- Transparency – Gambling with cryptocurrency in blockchain networks provide excellent transparency to both the casino operators and the gamblers. The blockchain network maintains records of all crypto transactions – wins, losses and payouts, in an immutable and transparent way. The process eliminates all risks of criminal activities and provides legit gambling with a constant display of records and transactional history of each user that are inalterable.
- Access and Efficiency – Essentially, online gambling platforms are adopting cryptocurrencies that can provide a streamlined sign up process to their users because of the ability to operate without requiring their personal information. In fact, the crypto-empowered gambling platforms can be placed in a much better arena compared to non-crypto websites as they can attract more people who can start playing instantly by providing their email ID and password only.
Is Crypto Gambling Legal?
Opinions about gambling with crypto are rapidly changing and so, is the legality of it in various countries There are no certain answers that state whether crypto gambling is legal, however, these following points can help users understand cryptocurrency from a legal point–
- In general, there is no specific law that governs crypto gambling. Therefore, it is not officially prohibited or allowed.
- The attitudes of the authorities towards cryptocurrency is also changing rapidly, as more countries are accepting the currency positively and changing the regulations concerning the use of crypto and various blockchain-based services.
- Most countries do not consider crypto as a real currency and hence, the laws applied to fiat currency should not apply to gambling with cryptocurrency.
- Some reputable gambling and betting jurisdictions have awarded licences to online casinos that offer cryptocurrency, such as Curacao. This implies that jurisdictions have taken responsibility for supervising and monitoring the operations of the crypto websites. Therefore, cryptocurrency operates legally as long as the casinos comply with the rules and regulations laid down by a particular jurisdiction.
What is in store in the future?
Many sources believe that cryptocurrencies like Bitcoin and Ethereum will become a primary source of transactions in most online casinos and gambling platforms in the future because of the several advantages they offer. The benefits can be quite helpful and handy not only for the gamblers but also for the casino operators in the gambling industry.
More casinos are accepting cryptocurrency as more punters are willingly choosing it as their most preferred payment method. Indeed, one of the biggest reasons that cryptocurrency will become a bigger trend in the coming years is the benefits it offers to all corners of the spectrum.
Conclusion
All in all, cryptocurrency and blockchain are the inevitable future of the gambling industry because of the basket of benefits such as anonymous gambling, privacy, high security, faster transaction and cost-effective blockchain solution that works for both the players as well as the online casino operators. The absence of intermediaries such as banks and other financial institutions make crypto transactions smoother and faster. In addition, crypto casinos are welcoming players from around the world, even from those countries where gambling is illegal.