Bitcoin was the first form of cryptocurrency and created a massive uproar during its launch in 2009. Since its inception, it has gained enormous popularity for many different purposes — one of those being online gambling. There are always risks involved with gambling in any form, but that’s what makes the rewards even better. Using Bitcoin is safer in many ways than paying for online gambling via credit card.
To understand why Bitcoin is the best currency for gambling online, we need to understand a few things.
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What is Cryptocurrency?
Traditional currencies are created and owned by governments around the world. Each form of currency is regulated, monitored, and easily trackable. The cryptocurrency was created after keeping in mind these things. It is a decentralized currency and is also completely digital. It is essentially a virtual form of currency. To buy cryptocurrency, you first need to invest actual money. Once you buy cryptocurrency like Bitcoin, you can use it, and your transactions cannot be tracked.
How Cryptocurrencies Work and Why You Should Use Them?
To give you an idea about how cryptocurrencies are decentralized and cannot be tracked by any entity, be it government or private, we need to understand the technology behind it.
Cryptocurrency uses cryptography to record its transactions. Cryptography is a technique that converts information into uncrackable code. It makes cryptocurrencies super secure and provides you an anonymous status for carrying out your transactions.
Every cryptocurrency has a ledger. All transactions that occur are public, which ensures there is total transparency. But, who are making those transactions is anonymous. A ledger also makes it hard for an accidental double transaction and encourages everyone to play fair, causing fewer scams. Since it is decentralized, it is a self-run and self-governed form of currency.
As we earlier mentioned, Bitcoin is among the first cryptocurrencies ever created and has been popular ever since. It runs on blockchain technology. Just like other cryptocurrencies, Bitcoins are also not owned by any government or jurisdiction and are independent. There’s a limit upon how much Bitcoin is available, which is 21 Million. It cannot be printed or forged since it is available only in the digital format. Due to its popularity and feasibility, Bitcoin has become one of the most widely accepted cryptocurrencies in the world.
How Online Gambling and Casinos Work Using Bitcoin
Now that you know what cryptocurrencies are and why Bitcoin is the best choice for online gambling let us understand how online gambling works using Bitcoins.
Since everything is happening online here, from transactions to the actual gaming experience, the software plays an integral part of the online casino. Many big online casinos have their own custom software experience. This software often plays the role of the table dealer, without needing any kind of human intervention on the casino’s end. Bitcoin casinos are often transparent about how their algorithms work as a gesture of fairness since transactions occurring using bitcoins are untraceable.
Anonymity is perhaps the most significant factor in deciding why you should better transact using bitcoins for online gambling. Since bitcoins are accepted globally, a player can play from virtually any part of the world. Most of the online casinos have no limits on the number of transactions that occur using bitcoins, whereas there is certainly a limit on the amount you can spend with actual currency.
Advantages of Online Gambling using Bitcoins
Let us take a deep dive into some advantages you get while transacting using Bitcoins for online gambling.
From Bitcoin’s inception, the goal was to allow people to make online transactions privately and to do so quickly. Since no government or bank has jurisdiction over Bitcoin, you don’t need to attach any details to the currency itself, meaning transactions are anonymous. As cybercriminals continue to develop new means of hacking, it’s imperative to keep your personal information safe.
By using your Bitcoin for online pokies and gambling, you aren’t disclosing any credit card or banking details that someone may steal during a data breach. The majority of online casinos in Australia and all over the world won’t even ask for any personal details at all, not even your name. As long as they have your cryptocurrency wallet address and username, then you’re good to go.
When you’re trying to withdraw money from an online casino, it can take days to receive it if you’re using fiat currency (government-issued). There are multiple steps in the transaction, with intermediaries involved along the way. With Bitcoin, the whole system is entirely internet-based, and with no steps required, the transaction happens quickly. Though the casino itself may take a day to authorize your withdrawal, it will still be much quicker than if you were using money.
Online casinos will often give more significant rewards to those who make deposits online with Bitcoin. Many online casinos provide a match bonus on your first deposit, which is usually somewhere between 50-100%. When depositing Bitcoin for the first time, casinos will likely always match 100%. Look for casino welcome bonuses that offer real Bitcoin payout. Some will give extra rewards such as free spins on the pokies, cashback bonuses, or even lifetime reload bonuses.
The value of your Bitcoin isn’t static. It’s always fluctuating. 1BTC was worth around USD 1000 in 2017 and is now worth over $9000. Even if you had 10BTC that you’d kept for three years, you would have made $80,000 by this year. If you keep an eye on the price and time it right, you could increase your winnings by thousands of dollars. Wait to withdraw your coin until the value goes up to get the most money possible from your Bitcoin.
Bitcoin is an excellent alternative to using credit cards or bank accounts when it comes to online gambling. Transactions are quick, rates are lower, and you keep your information private and safe. With the potential to get even more winnings as the value of Bitcoin goes up, it’s a smart bet.
Risks involving Online Gambling using Bitcoins
If you are going to use Bitcoins as a means of currency for online gambling, you should also understand all the risks that are associated with it. Here are some of the things that you should keep in mind while gambling online using Bitcoins.
Cryptocurrencies such as Bitcoins are a relatively new form of currency. Although completely digital, they still suffer from a highly volatile market. They are not stable, such as traditional forms of assets like stocks and bonds. These days, there is even a separate volatility index specially created for Bitcoins, which is called Bitcoin Volatility Index. It makes it easier for you to compare Bitcoins against major currencies in the world.
News plays a crucial role in driving the value of Bitcoins and other cryptocurrencies. When potential investors and other people hear that Bitcoin is struggling, or it might be regulated in the future, they tend to panic sell. Also, cryptocurrencies such as Bitcoins are used extensively in drug trades and a lot of other illegal activities that lead to bad press and alarms the reputation of it. However, optimistic investors view such events as a sign of the market maturing since the value would usually rise again after the news gets faded, giving investors a short window to invest smartly.
Mass Decision Making
Many people who own Bitcoins do not know what it is. They make decisions based on the choice of their friends or acquaintances. This herd mentality drives the value of the bitcoin to either direction. A lot of people might suddenly start investing after hearing that it is very profitable and then sell swiftly if the market crashes. This fr=urther makes cryptocurrencies like bitcoins volatile in nature.
Bitcoins and Inflation
For developing countries that have somewhat inflated economies and currencies, Bitcoin’s use case is quite different as to when compared to USD. When we are talking about the volatile nature of cryptocurrencies, we are comparing it to a highly stable currency such as the USD. But when we compare it with currencies from inflated economies, the volatile nature of it decreases. It makes it bad news for people dealing with using stable currencies but undoubtedly better for investors dealing with currencies from developing economies. Since when both the value of the currency rises, the same worth of Bitcoin purchased earlier is now worth more in that currency as opposed to the USD.
Using Bitcoins instead of a traditional form of payments like Credit cards is undoubtedly new. But the advantages it gives you still overpower some of the cons of cryptocurrency. All sorts of currencies, whether it is traditional bank-handled one or decentralized crypto, must be handled carefully. With that said, if you understand how to use cryptocurrencies like bitcoins, you can certainly use it to a great advent. It is not only a great way of investment but also provides you with a frictionless way of money transaction while also giving your privacy, anonymity, and the option to gamble anywhere in the world since your physical location does not matter.
We advise you to use cryptocurrencies with utmost responsibility, just like you would do with your actual money. Rest assured, enjoy gambling on online websites. If you have any questions or did not understand a certain part of this article, let us know in the comments section below, and we will surely get back to you.