Created in 2008 by Satoshi Nakamoto, Bitcoin is a new form of currency that has taken the world by storm. Since its inception, it has grown to become a popular payment system within the gambling industry. Even with the availability of other online payment systems, such as MasterCard, bitcoin has successfully established itself as a real currency.
However, even though it’s being used by more and more gamblers on betting sites and online casinos, bitcoin is still something several people are unaware about. So, are you considering using bitcoins for online gambling? Then read on, as in this article will discuss everything you should know about bitcoin gambling.
What Is Bitcoin and How it’s Used?
Basically, bitcoin is an online payment system which allows people to make anonymous transactions using bitcoin currency. Unlike other systems, such as MasterCard and PayPal, the currency doesn’t use any kind of intermediary and works peer-to-peer. However, bitcoin currency isn’t regulated by a central authority. This is perhaps one of the reasons why it’s gained so much popularity, as people have the opportunity to make financial transactions on their own without the interference of any outsider.
The currency is held within an e-wallet, thus making it a kind of virtual currency or digital money as it exists only in complex code. It can be kept on a website that specializes in hosting bitcoin wallets or on your computer in a private location and used according to your liking. Moreover, you can have as many bitcoin email addresses or bitcoin wallets as you require, and your information will remain anonymous.
Looking for online play? these casinos offer great payments options other then bitcoin:
Is It The Next Major Market?
As bitcoin isn’t a regulated currency, providing an exact estimate of what the industry is worth is easier said than done. However, according to some experts, there are some 14.6 million bitcoin units in circulation that have a collective market value of approximately $3.4 billion, though there are records which indicate an average of 45,000 bitcoin transactions being made every day. You have to admit that is impressive growth for a relatively young industry!
Wth amazing numbers to back up the bitcoin 'industry', it seems this currency isn't going anywhere.
Moreover, considering it is an irreversible and fast method of making payments, it is expected to do better than some well-established payment processors within the next few years. In fact, bitcoin is like any other form of non-cash payment, but it further ensures privacy, payment finality and immediacy. Also, it cannot be taken back, which makes it an ideal option for online casinos and betting sites.
The Benefits of Using Bitcoin Currency
Bitcoin currency offers a range of benefits. In simple words, it is digital money that will solve several problems we commonly face with other forms of currency.
Low Collapse Risk
Regular currencies are reliant on governments that have the risk of losing value occasionally. These events either lead to a complete collapse of the currency or hyperinflation, wiping out the entire life savings of an individual in a flash. There is no government regulation when it comes to bitcoins. It’s a virtual global currency.
Low Inflation Risk
The biggest problem with currencies, such as the dollar, is inflation. Over the course of time, currencies lose their value by a certain percentage, mainly due to the fact governments keep printing more money. However, with bitcoin currency you don’t have to face this problem as the system to make bitcoins is designed to be finite. No more than 21 million bitcoins will be mined. Not to mention, the release of bitcoins is slowing down continually, and will completely be halted within the next few decades.
Safe, Cheap and Simple
The problem with traditional online transactions, from a seller’s point of view, is online payment systems and credit cards allow buyers to claim their money back. Using escrow services can be slow and complicated. With bitcoin, though, once you get your money, it’s completely yours as buyers have no way to get their money back. On the other hand, for the buyer, sending money between accounts and the infrastructure of payments will be cheaper and simpler as they are done peer-to-peer, not through an intermediary.
Untraceable
Although a huge benefit, it also is a major risk of using bitcoin currency. You don’t have to worry about governments or organizations being able to trace your funds. This also means you are free to handle your transactions at your own will. As far as the risk goes, we will be discussing it in the next section.
The use of bitcoin has many advantages. including encryption technologies.
Are There Any Risks Involved?
The main problem with bitcoin currency is it’s not regulated. Not only this, it is still pretty much in the experimental phase. The stringent level of anonymity also brings with it the risk of manipulation. With no intermediary involved, there is no way to verify transactions and consequently, users find themselves in a situation where every dime is taken from them, with almost no way for it to be reimbursed. This has resulted in the creation of more payment companies as a method to address these issues. However, their effectiveness in is yet to be seen.
Several reports have also indicated the possibility of bitcoin currency having links with certain criminal activities, such as the black market, malware, theft and money laundering. Due to the level of anonymity it is difficult to take legal action against those responsible for these acts.
Does It Have A Future?
Its surge in popularity over the past few years clearly indicates bitcoin has the ability to flourish as a regulated and recognized currency. But even so, not a large number of gambling institutions are accepting this form of currency, and it still remains unregulated. Currently, state regulators are not showing an interest in establishing bitcoin as a regulated currency. However, they have acknowledged the currency can impact the gambling industry positively, provided it’s integrated properly.
Some casinos (like BitCasino.io) aim to mainly attract bitcoin using players.
It is safe to say bitcoin is pretty much in its infancy. People who want to use this currency for online gambling do not have a lot of options available regarding where they can spend their money, as not many online casinos accept bitcoins as a recognized currency.
But this is slowly changing. The gambling industry’s attitude has been positive lately and this brings hope to bitcoin users that soon in the future, bitcoin currency will become widely accepted, just like other regulated currencies within the gambling industry.
