Online casinos that have adopted blockchain (which can be seen as a distributed transaction database) in a gaming context usually receive a number of obvious benefits. To fully understand them, it is vital to understand the basic principles of this technology:
- Non-personal approach to verification, authorizing, and other control measures, all entrusted to encryption algorithms;
- No way of changing the entry once it has been processed;
- Anonymous as the chains are, the participants of the system can still publicly check the entries;
These features open a vast field of opportunities, and the transparency built into such systems is likely to be particularly alluring for players interested in finding a Bitcoin or Ethereum online casino, provided that the code used in casino games doesn’t favor the house. This means players can check whether their game results were not tampered with in real time.
Blockchain Capabilities
Crypto casinos are attractive for players due to the benefits in the form of anonymity and minimum bets. But the casino owners themselves also gain access to certain privileges.
It is much easier, cheaper, and faster to open a bitcoin casino than the gambling resource, where fiat currency is used (two-three weeks instead of two months). The list of clients and market boundaries for the operator will expand considerably. It is not necessary to get a license to start working in the market (but it is better to do so to increase the level of trust).
Cryptocurrency is becoming more and more accessible to the general public in different parts of the world, so there will be more and more players using Bitcoin. The share of crypto casinos in the market now does not exceed 15%, but in the coming years, experts predict an increase in these figures.
Blockchain Limitations
While the idea behind crypto casinos may seem sound at first, a number of problems soon become visible. The most important of these is the need for comprehensive regulation.
In most western countries, regulators are unlikely to license crypto casinos because of the issues associated with anti-money laundering and know your customer procedures and protocols. The laws on licensing require gambling payments to come from a regulated payment service provider, so direct cryptocurrency payments are not allowed. Because of its historical association with money laundering, regulators are more likely to remain on the alert when it comes to cryptocurrency as a payment method.
However, the licensing ordeal pales in comparison to another issue that may well explain the reluctance of businesses to invest in crypto gambling. The mysterious nature of cryptocurrency and the technology behind it makes ranking decentralized casinos quite a conundrum.
This regulatory ambiguity leaves room for services that exist outside the law in territories with flexible restrictions, which means that certain controls imposed by law on standard casinos are often not followed. At a typical online casino, players usually have to prove their identity. This protects young people by limiting minors’ access to the platforms.
Although a website may be disconnected from the network or geographically restricted, complications may arise on the way. By using a virtual proxy, aspiring cryptocurrency holders living in one of the countries where gambling is banned can easily access such casinos regardless of age. If you put it all together, the resulting image starts resembling a lawless wasteland, and it is not yet clear what steps crypto casinos may need to take on the path to being legally recognized.
Demand and Acceptance
Another problem that crypto casinos face is demand, or rather the lack of it. A little research shows that even crypto casinos that have achieved solid respectability have not yet succeeded in establishing a reliable user base.
Having a user base of 50 or more customers is a rare achievement for crypto-only casinos, and only seven are visited by a steady dozen daily. Several studies of the industry also suggest that there may be AI human imitations in crypto casinos to create an illusory demand for the services. This means that some of this already small user base could be considered fake.
Aside from questions about the legitimacy of cryptocurrency casinos, one of the main reasons players have not switched to these platforms may be that playing with cryptocurrency makes no sense. Today’s unpredictability means that cryptos are an asset rather than a reliable tool. Daily price movements mean that investing in cryptocurrencies is in itself a gamble, contrary to the enthusiast mantras.
Some may go as far as to say it is very risky to transact in crypto when a drop in price could make your bet much less valuable than it would otherwise be. The most actively involved players bet an average of 1,000 ETH on a monthly basis, the equivalent of almost $600k. However, if the next day the value of ETH increases by only 10 euros, an additional hypothetical value of 10,000 euros is added to the player’s loss.
This may look like bad news for the future of crypto casinos, but some indisputable strong points may give hope to the enthusiasts and spur the rise of crypto as a universally accepted payment method. Let’s see where blockchain gamblers are at an advantage compared to fiat currency players.
Strengths
Privacy
Most, if not all, gamblers would like to remain anonymous when playing, and cryptos are inimitable when it comes to concealing your true identity. There is no one who is authorized to open the lid off of the data packages you send out and receive, which enables the casinos to skip the part where they demand your ID for an account check-up – even more so, the casinos dealing exclusively in web-coins.
Rapid Transfers
Sluggish transfers are probably one of the most irritating aspects for anyone who’s using online banking methods. Guess what – using blockchain comes to the rescue yet again, leaving credit cards far behind. Expect little to no downtime simply because there’s not a single algorithm or, God forbid, a clerk taking a moment to scrutinize what exactly is happening with that cash of yours.
Bypassing Government Control
It often happens that a player can access the casino from their place of residence, but the governmental restrictions prevent them from using the preferred banking method. But the same cannot be said for cryptocurrency gambling – after all, we are yet to see at least one country implement a comprehensive crypto-trading law package. What it means is that most casinos with offshore licenses and some bearing mainland papers will gladly accept your coins, no matter what country they are coming from.
Exclusive Bonuses
A common practice for online gambling parlors is to make sure players receive an incentive – most often, promotional deals of different sorts. Both new and regular players can get those, and the more you play, the better deals you can count on receiving. To attract more crypto holders, though, the casinos may prepare offers that far exceed your regular deals. If you happen to own a stablecoin, the casino may be willing to reward you with a head-spinning bonus. Always remember to take a moment and scrutinize its T&C, though.
User Protection
The rule of thumb is that a legit casino has a vested interest in making its monetary side of the business as safe as possible. It is obligatory for new users to undergo an identity verification process before they can request due payouts of their winnings. Cryptos, however, bring this aspect to a completely different level. The absence of a unified control center also offers a solid safeguard. In addition, cryptocurrency users cannot duplicate transfers since that is how blockchain works in general.
When combined, all the aforementioned advantages form quite a solid foundation for the future success of the crypto casinos. However, as has already been outlined in the Limitations section, there are some substantial counterweights in play as well.
Weaknesses
Volatility
If you follow cryptocurrency news closely, you’ll know that the exchange rate is quite a challenge for Bitcoin. There were periods when this popular digital coin traded between $30,000 and $65,000. Now suppose you deposited your BTC into a casino, trading at $50,000, only to realize that the value dropped to $49 at the time of withdrawal. Naturally, this means a significant loss for the player. But the opposite can also be true.
Limited Control
There is still a general perception that cryptocurrencies are not controlled by the government. On the one hand, you get top security and rapid transfers, but on the other, there’s a detrimental effect on the general level of safety. Nevertheless, most cryptocurrencies are at least somewhat monitored and controlled.
No Refunds
You simply cannot expect cryptos to have the traditional recovery mechanisms existing in the fiat money world. Thus, players can’t complain about, for example, transaction delays, conversion rates, etc. In addition, the very moment you click the button to effect a transfer, it is no longer an option to cancel or refund the money. Double-checking the credentials is the only remedy here.
Conclusion
The longevity of cryptocurrencies has long been a subject of increasingly heated debates. Most of the extant problems are inseparable from the prospects of crypto gambling. A common sentiment in the expert opinion on the cryptocurrency projects is that there are many regulatory hurdles in the way, and the blockchain technology itself may require some improvements before being universally recognized as gambling fuel.
Overall, however, the pros of cryptocurrency gambling seem solid enough to claim it’s a feasible payment method. All casino players are willing to enjoy momentary transfers, impersonal accounts, big bonuses, and other privileges that blockchain can provide. Bear in mind, though, that you can’t count on the same level of support and problem-solving should things go South.
FAQ
Is there a crypto that will give me an advantage in gambling?
The question is rather about what cryptos your casino will accept – mostly, the choice will be limited to just a couple of options. However, the variety is constantly increasing, and you are likely to locate platforms accepting payments in Ripple, Litecoin, Monero, and other widespread cryptocurrencies.
How to make a deposit in cryptocurrency?
First of all, to make deposits at an online casino, you need to buy cryptocurrency from an online exchange. There are several cryptocurrency exchange and purchase sites on the internet where you can buy it. Once you have purchased some coins, you need to do the following steps:
- Choose a reliable exchange and buy cryptocurrency on it. Note that different exchanges offer different cryptocurrencies, so if you want a particular currency, such as Litecoin, then choose an exchange that sells that particular coin.
- Once you buy coins, you will need to find a cryptocurrency wallet to store and protect them. Ultimately, to have control over the coins, you must store them in your crypto wallet.
- Once you have purchased your crypto and stored it in a safe place, it’s time to choose an online casino that accepts cryptocurrencies.
- Deposit cryptocurrencies at an online casino.
- Once you have cryptocurrency in your wallet, register with the online casino and go to the payment section to make your first deposit;
- Select the type of cryptocurrency and you will see the wallet address. Copy the address and go to your cryptocurrency wallet;
- You will need a link to send the amount, so copy the online casino wallet address;
- Enter the amount you want to deposit into your casino balance;
- Click “Submit”, and the funds should appear in your casino player account within seconds.
Do cryptocurrency casinos offer casino bonuses?
Yes. Cryptocurrency casinos offer similar rewards compared to classic online casinos that will only accept credit cards. Sometimes casinos may even offer players exclusive promotions and bonuses on deposits made using cryptocurrencies – often more advantageous than what you could expect with a traditional banking method. However, if these are not available, you still gain access to other casino promotions such as the welcome bonus, free spins, etc.
