Cryptocurrency and Online Gambling: A Growing Trend?
Online gambling and gaming are big business. Constantly improving technology, security, and technology means punters and gamers can access and play what they want, where they want. One technology driving the growth is blockchain. Cryptocurrencies like Bitcoin and Ethereum are accepted at many online sites, and the anonymity they offer users is one of the attractions.
An increasing number of international online casinos accept cryptocurrencies as payment. They are one of the options alongside more traditional methods like Visa, Mastercard, and PayPal. Online gambling establishments offer a wide range of alternative payment choices and sector-specific solutions. These include names like Boku, MuchBetter, and Paysafecard. One of the options for players in Canada is using Interac online casinos for speedy and secure deposits and withdrawals. However, blockchain is becoming increasingly important in the sector.
The original cryptocurrency, Bitcoin, emerged in 2009. Initially, it was dismissed as an invention for geeks and techies. However, everyone now knows about crypto, even if they do not fully understand the technology. Bitcoin and Ethereum are household names. The valuation of these non-fiat currencies has peaked in the trillions. While there have been declines and crashes, they remain popular, and people who hold them often use crypto for online gambling. Crypto is increasingly popular for the following reasons:
- Anyone with a smartphone can send and receive crypto; there is no need to go through an intermediary. As online casinos are increasingly mobile-first establishments, accepting crypto makes good business sense.
- Cryptocurrencies are in blockchain and cryptography technology, so there is little chance of them becoming compromised. In addition, crypto is incredibly secure and virtually impossible to hack unless the user falls for a phishing scam.
- Crypto has very rapid settlement times and low transaction fees. Settlements are almost instantaneous, and transaction costs should not exceed a few cents.
- Crypto is one of the fastest-growing industries, and many people are looking for places to spend it. It is the simple equation of supply and demand. Online casinos that accept crypto attract customers who like to pay using it—those who do not miss out on potential players.
- Crypto offers very high privacy levels, which is one reason they are popular with players. In addition, anonymous deposits can be made. However, this is a double-edged sword as Governments and online casinos have anti-money laundering policies, and there is increasing regulation.
- Cross-border payments are easy using crypto. In contrast, traditional payment providers can charge hefty fees for this service, and payments can be delayed. In addition, due to geopolitical pressures, some cross-border financial transactions might not be possible using fiat currencies.
Gambling and crypto – a long-term trend?
Gambling games will likely be constructed in the future using blockchain technology. The benefits of cryptocurrencies include decentralization, transparency, and security. Casinos that run on this technology will be operating at a significant advantage over conventional ones. In theory, the benefits will include the following:
- Online casinos using blockchain technology will have lower operating expenses. This should allow them to have more favorable RTPs (return to player percentages) than their competitors. As a result, higher RTPs should attract more players.
- These casinos will be able to offer better value for money with streamlined transactions and end to prolonged withdrawal times.
- Many people have seen an increase in the value of their cryptocurrencies but have limited places to use them. Online casinos are cashing in on people's love of online gaming, the opportunity to turn their crypto into even more money, and having fun along the way.
- More people are looking to use their crypto at the casinos, and, in many cases, the casinos are just responding to customer demand.
- Online casinos hold a vast amount of valuable and sensitive data and money. As a result, casinos, both land-based and virtual, have always been vulnerable to robbers and con artists. You only have to think about films like Ocean's Eleven to understand the extraordinary investment casinos make to protect themselves from a heist. Because blockchain is so secure, casinos can use it as an extra layer of security.
Of course, there are some drawbacks
While blockchain and crypto are gaining in popularity, there is still skepticism about whether they will ever become genuinely mainstream. In addition, many governments are considering regulating the crypto market – which somewhat defies the purpose of decentralization. Finally, price fluctuation is one of the most significant concerns for crypto owners, as values can change dramatically within minutes. This can be a real drawback for players staking money at an online casino.
Many crypto investors and stakeholders see Bitcoin, Ethereum, and other cryptocurrencies as an asset to hold over a long time rather than something to be used as a payment method.
There is little doubt that the sector will come under increasing scrutiny. Online casinos and betting sites are preparing themselves for more regulation. Cryptocurrency will be included in online casino regulation as governments move to enforce policies designed to prevent gambling harms. Anonymity is great for some, but how can underage gambling be stamped out if no identity checks exist? People feel more comfortable betting in licensed markets; this leads to greater innovation and, overall, a better gaming market.
Because of its security, blockchain technology will revolutionize the casino gaming sector. It will be a win-win for players and online operators alike. Meanwhile, the losers will be the fraudsters.
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