Understanding Cryptocurrencies and Crypto-Gambling Before Getting into It
Cryptocurrencies have been around since 2008 when Bitcoin was introduced by an identity or group of people called Satoshi Nakamoto. It was in 2010, however, when the first purchase of goods using Bitcoin happened. It was when Laszlo Hanyecz bought two boxes of Papa John’s Pizza worth 10,000 BTC.
It was 2011 onwards when more cryptocurrencies were launched, including Litecoin and XRP or Ripple. Ethereum was launched in 2015. Currently, this is the 2nd most used cryptocurrency next to Bitcoin. Bitcoin remains to be on top as it is considered as the father of cryptocurrencies.
The value of cryptos mainly increased in the first decade of its existence. It was in December 2017 when Bitcoin peaked and was valued at 20,000 US dollars per coin. Since then, many people and businesses, including the top casino sites, took notice of its existence.
The online gambling industry is known to welcome the use of cryptocurrencies quite warmly. Experts estimate that around 60 percent of the overall transactions made with cryptocurrencies are related to online gambling activities or websites that offer casino games like blackjack, slot machines, baccarat, and poker.
It is also estimated that around 337 cryptocurrency transactions are made online each second. This just shows how more and more gamblers are choosing to use cryptocurrencies when they are gambling online. This is also why many online casinos are now accepting Bitcoin and other cryptos as a mode of payment. There are even casinos that only cater to crypto-users.
There are a few reasons why gamblers would rather use cryptocurrencies when they are playing online. Convenience is the main reason as transacting with Bitcoin is quick and easy. It also makes players feel more safe and secure.
There is no need to disclose your banking details to online casinos if you’ll be transacting with cryptocurrencies. All you need is a wallet address to push through with your transaction. In a way, this helps gamblers remain anonymous.
Running a Bitcoin casino is also generally less expensive than running a traditional online casino. Casino operators pay banks for banking payments to be processed but since cryptocurrencies are decentralized, there’s no one that needs to be paid to process the payments.
Because of this, Bitcoin casinos are known to be generous when it comes to the promos and bonuses that they offer to cryptocurrency users. Many players are taking advantage of this and it works well on both ends.
Using cryptocurrencies instead of fiat currency also lets players overcome the restrictions of their countries when it comes to gambling on offshore casinos. Banks are typically strict when it comes to transactions made outside the country. This is especially if the transaction is related to any gambling activity. A bank transaction like this could take a few days to clear as approval is necessary and this is something that crypto users don’t have a problem with.
Now, you may wonder whether crypto-gambling is legal. As of now, this is generally in the grey area. However, there are no specific laws that target Bitcoin gambling. It is basically neither legal or illegal. That may give you hesitations when it comes to gambling with cryptos, but you really won’t get in trouble for this.
If you want to be sure, you can just look for online casinos that are licensed by the Isle of Man. The Isle of Man has already recognized Bitcoin as a legitimate payment method for online casinos.
In Japan. A federal law was passed in 2018 that allows even physical casinos to accept crypto transactions. The Japanese government strictly monitors crypto-gambling in the country and it is working for them so far.
Other countries that regulate crypto-gambling are the UK, Italy, Netherlands, Greece, Belgium, and Poland. Still, it’s Japan that has clear laws and regulations regarding crypto-gambling. The US is still in the grey area as there is still now law in the country that prohibits and allows crypto-gambling. Still, many players in the US are transacting with cryptos for their online gambling activities.
Right now, the use of cryptos can’t still be considered as something mainstream. Although there is a significant increase in its use in many industries and businesses worldwide. Even if Bitcoin hasn’t peaked once again for quite a while now, experts still see reasons to believe that it would still peak at some point.
With that, many are saying that the use of cryptocurrencies in the future of online transactions. This is most especially for online casinos. It is likely that all online casinos will allow cryptocurrency transactions in the future.