The gambling industry has seen tremendous growth with the introduction of the internet. Since the discovery of blockchain technology in 2008, the development of gambling-focussed decentralised applications has become the new trend. Today, you can use your Bitcoin, Ethereum, and other cryptocurrencies instead of cash to place your wagers.
Although millions of bettors prefer using their cryptos for online betting, some remain sceptical about the validity of blockchain gambling. We take a closer look at what crypto casinos are all about and discuss the most prominent negative and positive aspects of blockchain gambling.
What is Blockchain Gambling?
Blockchain gambling, also called crypto gambling, is the use of cryptocurrency as a payment method for online gambling sites. This modern product works much the same as regular online gambling but uses a digital alternative instead of traditional currencies. You can purchase cryptos through an exchange or by opening a crypto wallet.
Unlike many other methods of payment, there are some huge advantages to using crypto. Anonymity and safety, for instance, are some of the reasons why many prefer this digital way of gambling. Sceptics look at disadvantages like legality and volatility and prefer using their hard-earned cash when gambling online. Let's weigh the pros and cons of this new popular trend.
Advantages of Blockchain Gambling
The gambling industry has recently been transformed by blockchain technology. Many enterprises have effortlessly incorporated cryptocurrencies, making it easy for online casinos to follow suit. Choosing a payment method when gambling online is an important consideration, and below are a few of the most prominent benefits when using cryptos to gamble.
Anonymity: Crypto gambling offers a high degree of anonymity - a primary benefit for gamblers who prefer keeping their info private. You can gamble online with the peace of mind that your personal and financial information will not be compromised. Cryptocurrencies are decentralised, making transactions much harder to track. Online sites that exclusively accept crypto tend to require less personal information as the user's identity is not tied to the transaction.
Security: Blockchain gambling offers additional layers of safety and enhanced SSL encryption technology to protect your financial data. As mentioned above, crypto betting sites rarely require as much personal and financial information as regular online gambling sites as records are maintained on blockchain networks (instead of traditional banking accounts). All you need is a wallet address and a specific identifying code.
Speed: All transactions are generally completed faster, eliminating the long wait required for traditional payments to clear. With cryptocurrencies, no third party is involved in the payment process, which cuts down on transaction time. You would typically see an immediate clearance of funds when betting with cryptos, whether you make a deposit or a withdrawal.
Easy sign-up: Most crypto betting sites allow you to sign up without needing personal details, making the process quick and easy. Regular online casinos require you to submit personal information, and creating an account can be long and tedious.
Bonuses and promotions: Since crypto betting is a relatively new trend, you can expect to find numerous attractive bonuses and promotions. Players can take advantage of sign-up bonuses, welcome bonuses, free spins, cashback on deposits, double-ups on first deposits and much more. Countless new crypto casinos are offering lucrative deals and sufficient incentives.
Save on fees: Generally, it is much cheaper to transact in cryptocurrency than any other payment method. Cryptos are decentralised, eliminating the need for gaming sites to cooperate with third-party organisations. There is nothing better than getting more bang for your buck when betting online, so always check the T&Cs of an offer before you accept it.
Available to all: When you use cryptocurrency to gamble, location restrictions don't exist. Crypto is a globally accepted payment method, enabling users to bet beyond their borders. Some online casinos are restricted to certain payment methods or currencies, while crypto casinos allow any player with access to cryptocurrencies.
Provably fair: Crypto casinos design their games to be provably fair, which means you can be sure that you are not cheated on your winnings. Tech-savvy players can check the outcome of a game by using a cryptographic hash function. Most online casinos offer fair games, especially those that are properly licensed and regulated, but with crypto games, you know the outcomes are truly random.
Disadvantages of Blockchain Gambling
Before you dive into crypto gambling, there are some aspects you need to be aware of. While there are many advantages to blockchain gambling, there are some downsides you need to consider. Like ordinary online casinos, most crypto casinos are licensed entities tied to a regulating authority, but some risks are involved. Below are a few disadvantages of blockchain gambling.
Volatility: The crypto market is constantly moving, and price fluctuations threaten its value daily. It's useless if you win big on a crypto casino and then find that your crypto has significantly decreased in value. On the other hand, your crypto can increase in value, adding to your profits. The true value of cryptocurrency is still undetermined, and many cryptos have recently crashed. Supply and demand determine the value, and huge price fluctuations are synonymous with cryptocurrencies. Like betting online, owning cryptocurrency is a gamble, so never invest more than you can afford to lose.
Unfamiliar territory: The crypto betting market is in its infancy stages, and there is still a lot to be learned. With the lack of regulation surrounding them, many crypto casinos have suddenly closed. Do your research and choose a crypto casino wisely. Read player reviews and only choose betting sites with a well-established reputation in the gambling industry. Many unlicensed crypto sites may seem legit but can leave you penniless.
Instant transacting: With great speed comes great responsibility, and with crypto, there are no takebacks. If you have made a mistake or have chosen the wrong amount, you cannot reverse the transaction. Human error is a real threat with crypto gambling, and you must be precise, meticulous, and very careful with each transaction you make.
Legalities: Some countries are still adapting to this modern-day payment method, and most laws do not accommodate this digital currency system. If a country's law does not officially forbid something, individuals are free to do it, making cryptos relatively unregulated. First-world countries like the UK fully support using cryptocurrencies, and more countries worldwide will adapt in time.
There may be uncertainty with blockchain gambling, but the advantages certainly outweigh the disadvantages. With enormous popularity worldwide, cryptocurrency is certainly here to stay, and the gambling industry is evolving rapidly.
Online casinos and crypto coins are two digital technology innovations, and combined; they make a powerful statement. Blockchain gambling offers a safe, secure, and fast alternative to traditional payment methods, and the gambling market is eager to see what comes next.