Cryptocurrencies are becoming increasingly popular by the day, and online casinos have caught on to this trend. Initially, online casinos added crypto as just another form of payment, but the conveniences associated with this transaction method gave rise to platforms operating exclusively on cryptocurrencies.
Bitcoin casinos have many advantages over traditional online casinos, and their primary allure lies in expeditious contracts, privacy, and provable fairness. But before you indulge in all the fun that awaits you on these platforms, let’s delve deeper into the one innovation that forever changed the gaming landscape.
How Bitcoin Casinos Operate
Crypto casinos offer the same types of games as traditional casinos, like roulette, poker, blackjack, and slots. The only difference is the exclusive use of cryptocurrencies to fund the gaming experience. This comes with a range of perks, like low operating costs, resulting in higher payouts for players than traditional casinos.
Leaving FIAT money behind, crypto casinos cater to a growing customer base that reached 516 million crypto asset users worldwide. Currently, there are around 9000 functional currencies, among which Bitcoin is the most popular, with over 190 million owners worldwide.
Also, the number of crypto casinos has exceeded 2000 platforms, many offering mobile apps.
With so many Bitcoin casinos to choose from, the best way to find one that suits your needs is to check casino reviews, forums, or lists, such as the list of Bitcoin casinos at nodeposit.org, where expert users compare different platforms. These resources offer details about the features of the crypto casinos and can help you make the right decision.
How Blockchain Changed Online Casinos
Bitcoin casinos are growing in popularity because they offer other forms of convenience, aside from high payouts. The blockchain technology behind crypto casinos allows fast transactions with punters enjoying discretion, security, and fairness. Let’s explore why playing at Bitcoin casinos is so popular.
Blockchain Transactions Are Instantaneous
Blockchain transactions remain fast, although the speed often depends on the number of activities at a given moment, causing network congestion and the time it takes to add the confirmations. PoW, PoS, and DPoS require some time to process. Still, players can get their payout quickly and submit deposits for their games almost instantaneously compared to traditional payment methods and bank transfers.
Blockchain Payments Are Direct
Blockchain transfer of assets goes directly from the sender to the recipient without an intermediary or a central authority that controls transactions. Also, smart contracts allow for an automated processing of funds when the sender has met certain predefined conditions.
Blockchain Hacks Due Diligence
In traditional casinos, players are required to comply with a whole host of know-your-customer (KYC) procedures and checks before they can enjoy playing. Bitcoin casinos also have such KYC checks, but the use of blockchain technology allows them to reduce verification requirements to the bare minimum.This minimizes the risk to players’ data by making it much more difficult for anyone to access information about their identity, account balance, or personal contact information.
Blockchain Ensures Low Fees
Online casinos are global platforms accepting players worldwide, and traditional transactions require financial intermediaries that charge fees for their services. Blockchain technology reduces these costs, eliminating go-between agents for cross-border payments and making transactions more cost-effective for players.
Winnings in crypto casinos are taxable depending on the country or US state laws. However, estimating the gains or losses can be complicated, so players should engage a local tax professional to learn how to record crypto casino transactions correctly.
Blockchain Improves Game Transparency
The traceability of assets in the blockchain system brings unprecedented transparency. Each transaction has its detailed history recorded on an immutable public ledger so players can review all transfers at any time.
Issues like tampering with game results, disputes over winning, and withholding payouts are more likely to become things of the past.
Blockchain Guarantees Provably Fair Games
Provably fair games involve shuffling the deck or spinning the reels randomly and letting players review the results afterwards to check the game’s fairness. This is possible because of the SHA-256 encryption algorithm, which is used to verify the unhashed serverseed containing data of the game randomisation. Players can compare the results for every hand or spin manually or by using an online tool. The provable fairness ensures the integrity of the casino, removing any doubt over the game results.
The Drawbacks of Bitcoin Casinos
Despite the unprecedented conveniences, it’s essential to acknowledge the existing challenges and considerations of blockchain technology and crypto casinos.
- Regulatory Uncertainty: The lack of legislation about cryptocurrencies worldwide is reflected in the regulatory status of crypto casinos, which varies across jurisdictions.
- Lack of regulation may result in fraudulent casinos: The absence of clear rules may be used by certain crypto casinos to employ unethical practices. Players must check the reputation and legitimacy of the Bitcoin casino before joining the platform.
- Limited game selection: Bitcoin casinos may offer a narrower range of gaming options compared to conventional platforms.
- Volatility of cryptocurrencies: The value of cryptocurrencies is changeable, which may negatively impact both players and casinos.
- Responsible gaming concerns: While players enjoy the anonymity and privacy of crypto casinos, it also entails problems with ensuring responsible gambling and self-exclusion practices.
- Network congestion: The blockchain may lose its speed as more people use it, meaning that payouts, withdrawals, and deposits will no longer be processed in an efficient and timely manner.
- Demanding storage capacity: Ledgers record each transaction in the system, requiring new investments in storage and raising the costs of running a Bitcoin casino.
Key Takeaways
The introduction of cryptocurrencies has revolutionized the iGaming industry, making Bitcoin casinos an increasingly popular option for players. Blockchain technology has played a critical role in developing crypto casinos, enabling fast processing of transactions, providing more discretion for players, and protecting players’ data from unnecessary risks.
Along with these conveniences, the crypto casinos’ transparency and provable fairness have captured the attention of passionate players worldwide, ensuring their popularity in the years to come.
