Exploring the Convergence of Cryptocurrency and Online Gambling
Cryptocurrency has become a popular payment method in several sectors. Leading actors in online banking, video gaming and other essential transactions now accept cryptocurrency payments. Fortunately, online casinos have caught on to the crypto payment trends and are leveraging these crypto options to offer seamless payment solutions. This review explores an overview of cryptocurrency and its influence on modern online gambling options.
Before we go too far, let’s deal with the basics.
What Are Cryptocurrencies?
If you have ever been confused about the nature of cryptocurrency, don’t worry; we have all been there. The idea of a virtual currency is easy to grasp, but cryptocurrencies are not that simple.
Cryptocurrency is a digital payment system that runs on encrypted algorithms. The encrypted nature of crypto coins makes them alternative currencies and a secure virtual accounting system. This means that cryptocurrencies are not only convenient for making payments, but they are also safe from fraud or third-party influence.
Being a secure and anonymous payment option makes cryptocurrency appealing to sectors that need unrestricted payment options. Video games and other online gaming platforms are quick to adopt different crypto coins because they offer faster payment options with anonymity, lower fees, and better security. On the other hand, players are thrilled with how seamless payments can be with them.
How Does Cryptocurrency Work in Online Casinos?
There is no doubt that online casinos have taken over the gambling industry. A punter that test casino with free spins no deposit Australia 2023 enjoys the convenient gaming experience and simple design. Most online casinos attract players with large collections, intuitive interfaces, and abundant game promotions. However, fast and safe payment options remain one of the biggest selling points of online casinos.
Online gambling has gone through different payment evolutions. These betting sites have explored bank transfers, internet banking, credit cards, e-wallets and finally, we are down to crypto options. Crypto coins stand out among these payment options because they are faster, safer and more convenient.
Crypto works like other payment methods. However, it is simpler because players can make deposits and withdrawals without going through third parties. Crypto options like Bitcoin, Ethereum, Litecoin, Dogecoin, and USDT are popular payment options in several online casinos. Registered players can make crypto payments without the long KYC (Know Your Customer) requirements. Players can pay from their crypto wallets or any other credible crypto transactions portal. The good news is that casinos that allow crypto payments don’t demand impossible personal information.
Benefits of Using Crypto Coins in Online Casinos
The popularity of cryptocurrencies in online casinos comes from the security and other benefits players get from this alternative payment method. Let’s explore the leading advantages of crypto coins in online gambling.
- Fair games
- Faster transactions
Provably Fair Games
The convergence of cryptocurrency with online gambling has resolved one of the biggest iGaming challenges. Many players worry about fairness in online gaming and suspect that the casinos and game providers may be cheating them. But cryptocurrency takes care of this challenge.
Blockchain in cryptocurrency ensures accountability in the transactions, and that technology now applies in crypto-based casinos. Betting sites that accept crypto coins also provide provably fair games developed using Blockchain technology. These provably fair game options allow players to review game history and confirm that the games were fair. These games have become the hallmark of credible gaming, but they are only available in crypto-based casinos.
Payment speed is a leading condition when considering an online casino. Players want their deposits and withdrawals to reflect instantly, which is impossible. Different factors, including the limitation of the financial institution, can extend the processing time. Fortunately, cryptocurrency does not have this limitation.
Crypto coins are unregulated digital currencies, excluding them from the usual banking or finance institution challenges. Crypto transactions are strictly between the player and the casino, making it a direct interaction with no delay. The transactions don’t require long processing times like other payment options. The only delay you can experience with crypto transactions is the time it takes to reflect withdrawals in your crypto wallet.
Security and Anonymity
We have stated earlier that cryptocurrency runs on a cloud-based encryption algorithm. Blockchain remains the most secure data encryption with hash functions and a vast computing range. Blockchain stores crypto coins as code, blocking all unauthorised access.
This cloud encryption also protects data by securing the player’s identity. Only the casino and the player would have access to the payment information, and they cannot share these details with third parties.
Disadvantages of Using Cryptocurrency in Online Casinos
While cryptocurrency has become the most encouraged payment method in online interactions, it still has some notable limitations. Here are some prevalent downsides to using crypto coins in online casinos.
- No regulation oversight
Like other currencies, crypto coins are subject to market factors like demand and supply, affecting their values. However, the challenge here is that the value of cryptocurrency changes faster than other currencies. Crypto prices are volatile and change without notice. This price change may sometimes be in the player’s favour, but that rarely happens. Players may lose money if the value of their cryptocurrency drops after they have made their deposits.
No Regulatory Oversight
Cryptocurrency is a decentralised payment method, and this feature protects it from government regulations. The lack of oversight has benefits like anonymity and lesser transaction fees discussed earlier. Unfortunately, it also makes cryptocurrencies unacceptable in some countries.
Most governments have laws against cryptocurrency because they cannot regulate its distribution or value. Gaming and betting punters in these countries may have some challenges acquiring cryptocurrencies because they have to go through illegal crypto traders before they can get crypto coins.
Crypto coins have found their way into the online gambling sector, offering a comfortable payment solution to players. It is safe to state that crypto is the future of online casinos, and this post covers everything you should know about cryptocurrencies and online casinos.
*This article was paid for Cryptonomist did not write the article or test the platform.