The iGaming industry is one of the major entertainment sectors online and is expected to reach a revenue of $125.6 billion per annum by 2027. However, that figure does not include large parts of the popular bitcoin casino sector. So what are these operators, and what makes them so popular?
Ask any cryptocurrency enthusiast, and they will espouse the benefits of bitcoin and Ethereum until the dawn rises. Yet for the everyday person, there are still few applications for crypto other than investment. One of the few sectors that has innovated and forged ahead with it has been the online casino sector, introducing specific platforms built on the blockchain.
An Introduction to Bitcoin Casinos
The main confusion when it comes to bitcoin casinos is what they actually are. The term is used broadly to describe providers that accept bitcoin as payment.
However, that does not tell the full picture. There are many different providers that do this, including well-known, established names you will see advertised on television, radio, and online. These bitcoin casinos will let you access all the slots and table games on their websites. You will also get exciting bonuses when you sign up and credit your account. This can be done through Visa, Mastercard, and other methods but they will also let you pay using bitcoin. This is a big advantage for many players.
The second type of bitcoin casino is one built on the blockchain itself. They will accept crypto alone as payment, but the way they operate is very different. A blockchain is a digital public database, which acts like a ledger. Digital information is chained together in blocks, and this can be used for various applications. One of many is providing gaming platforms, of which a subgenre is casinos. This brings with it all the benefits blockchain technology does: Security, anonymity, and speed.
The Advantages of Bitcoin Casinos
The biggest advantage of using bitcoin for gambling purposes is that it passes control over to you, the player. When you pay with bitcoin, you don’t need to hand over personal financial details. There is no middleman, meaning the possibility of fraud, theft, and data breaches is reduced. As all information is stored on the blockchain, then information is immutable. There will be no chargebacks or added fees.
As there is no middleman, it reduces costs drastically. This can also speed up transactions. Payments in cryptocurrency are almost instant. The only thing that can slow you down is how long it takes the operator to process the payment you have made.
Crucially, the whole process is private. No one can see your name and details when you are paying with bitcoin, only your anonymous wallet. While they can see transfers made from it and the balance, they have no way of knowing who actually owns it.
Challenges and Risks Associated with Bitcoin Casinos
The main disadvantage of using bitcoin in casinos is its volatility. In the last year alone, its value has gone from just over $54,000 to a high of $111,000. While this can bring rewards, it also makes it very hard to manage finances. When you pay at a casino using bitcoin, it is usually swapped to a fiat currency value, often USD. Of course, this depends on where you are playing. The only certainty is that you may get more or less depending on the value that day.
Bitcoin anonymity, one of its greatest strengths, is also its greatest weakness. Bitcoin casinos built on the blockchain can operate outside the laws and jurisdictions of countries and states. This offers many advantages such as being able to introduce new, cutting edge yet untested games. It can also mean better payouts, as they are free from regulations regarding taxation.
The downside is that this can be used for nefarious purposes. Games may be unfair, and operators could shut down and take your funds without repercussions. This highlights the need to find rated and reviewed casinos that accept bitcoin.
Future Outlook for the Bitcoin Casino Industry
The future of the bitcoin casino industry is very hard to predict. This is because it is dependent upon the success of two factors: The gambling industry and cryptocurrencies. For it to work, both must succeed.
When it comes to bitcoin specifically, it is not just cryptocurrency that needs to triumph. Bitcoin is becoming very valuable, with some even touting it as the next gold. As traditional financial institutions adopt it, its initial concept as a way to pay for everyday goods digitally is further away than ever. It is an investment tool. Just as you wouldn’t pay with US bonds to do your groceries, using bitcoin for entertainment is starting to look just as absurd. Despite people still believing it possible, it now looks like another concept like stablecoins will serve that function.
In the here and now, bitcoin casinos do offer a huge advantage. Make sure you get the right one, and check out reviews and its reputation online. Then you can sign up and start gaming immediately.