The History of Cryptocurrency Gambling – Development Up to the Present

The History of Cryptocurrency Gambling - Development Up to the Present 1

The online gambling landscape is ever-evolving. Whether it’s a legal framework driving it up or an emerging technology, this popular area is always changing for the better. It goes hand in hand with new technology trends, always adapting to new challenges instead of leaving players in the dust.

Whenever there’s a new security measure brought to the market, online casinos implement it. Likewise, whenever there’s a new game, you’ll find it in online casinos first. The same goes for payment methods. While many don’t consider the list of payment methods important, experts are adamant that this is a feature you should definitely keep in mind.

Just like everything else in the digital era, payment methods are evolving as well. When online casinos first appeared, bank transfers and credit/debit cards were the only possible payment options. E-wallets came to the market later, and in recent years, cryptocurrencies have made a splash. From the moment online casinos first appeared, players were looking for speedy transfers and proper security. While many banking options offer exactly that, no one does it better than cryptos.

What Are Cryptocurrencies?

If you’ve never heard about Bitcoin or other cryptos, you’ve probably been living under a rock. Many people are simply don’t know what they represent, and it’s kind of a complex matter. Bitcoin is a decentralized payment option that’s not connected to a bank or any financial organization. Ever since it was introduced to the market in 2009, it emerged as a potential use case for online gambling. Since it’s not associated with banks, it became the perfect vessel for online gambling transactions. There was only one problem – it’s not a legal payment method around the world.

While there are plenty of countries that accept it now, it was different a few years ago. Many consider Bitcoin a scam, but not online casinos. As a matter of fact, it has rapidly emerged as one of the best payment options on the web, thanks to anonymous transactions and speed.

Because of the fact that it’s not connected to any financial institution, governments aren’t exactly pleased with Bitcoin’s ideas. Banks aren’t keen on it either – there’s no way to make money out of a virtual coin. However, it has plenty of potential for fast online payments and has found itself a home at online gambling sites. 

Many of these were hesitant to adopt it earlier, but the market is changing now. Bitcoin and cryptocurrencies are getting implemented in many virtual businesses, and online casinos are on top of the list. While the number of Bitcoin casinos was low in the past, it’s skyrocketing right now. There are many cryptocurrency casinos on the market in 2021, each one with its pros and cons.

With Bitcoin or any other cryptocurrency, you can withdraw your money instantly from casino sites. It was a matter of hours with e-wallets, but the speeds can now be measured in minutes. At the same time, all financial transactions with cryptos are anonymous and pretty safe – the blockchain may be the safest option for digital money transfers on the market.

Cryptocurrency Gambling

History of Cryptocurrency Casinos

It took a while for the online gambling market to warm up to the cryptocurrency idea. The first such casino was SatoshiDice, obviously an homage to the mysterious creator of Bitcoin, Satoshi Nakamoto. It launched in 2012, 3 years after Bitcoin’s whitepaper hit the Internet. It was the first casino to implement Bitcoin payments and feature the famous Satoshi dice game.

The casino allowed players from all over the world to bet with Bitcoin and play their favorite casino games without registration. Nothing more than a BTC wallet was required. All wagers were taken as BTC transactions, with separate addresses for each payout multiplier. It was a huge hit at the time, although a year after launch, the casino was forced to drop support for US players due to a number of legal notices.

Still, the revolution was underway. SatoshiDice introduced Bitcoin to the online gambling space and set an example for many similar gaming sites in the future. A hundred more would follow, with a major explosion in the crypto gaming space in recent years. A new wave of crypto casinos hit the market in the past couple of years, and Bitcoin is now often added as a payment method at many traditional casinos.

There are two types of crypto casinos:

  • Cryptocurrency exclusive sites: these casinos only work with Bitcoin or any other cryptocurrencies. The number of these sites is a few and far between since players tend to choose the other option more often.
  • Gambling sites that accept fiat and crypto: why not have the best of both worlds? Some of the most popular online casinos on the market accept both fiat money and Bitcoin deposits and may even accept other cryptos such as Ethereum, Litecoin, Ripple, and more.

What’s Blockchain?

Before you understand how Bitcoin works, you have to understand what the blockchain is. To put it simply, the blockchain is a publicly distributed ledger that keeps track of all cryptocurrency payments, including those made in online casinos. It’s a peer-to-peer network that doesn’t require third parties to verify payments. That’s decentralized finance and the core of everything Bitcoin stands for.

One of the most notable features of the blockchain is anonymous transactions. Simply put, it doesn’t require your bank details, nor does it need your name. As long as you’ve got a proper BTC wallet, you can send money between addresses on the blockchain with ease. Of course, the technology behind it is very complex, but we don’t need to go into that kind of detail.

Blockchain capabilities will grow with time. It’s an open-source technology that constantly evolves and gets better. Nearly every cryptocurrency has its own blockchain. Some aim to improve the speed of Bitcoin, and others are more focused on security. Whatever the blockchain promises, one thing’s for sure – it’s a technology that works best in online gambling sites.

Bitcoin Blockchain

Blockchain Can Solve Many Current Issues

With more and more players starting to enjoy the thrills of gambling online, increased security measures are in need. Players need to make sure that all transactions are accounted for, and that games and services are completely secure. Blockchain can help address some of these issues and provide players with an enhanced gambling experience with heightened security.

One thing that it changes is that players are able to gamble with decentralized digital currency. This is much safer and also helps prevent fraud and account hacking. Instead of using conventional methods where information and data can be tampered with, blockchain technology eliminates these risks.

If you have gambled online in the past, you know that many sites have restrictions in regards to who can open a real money account. Each casino must adhere to local gambling laws, meaning that not all sites will be accessible to players. In addition, some players may be restricted from using certain payment methods, such as credit and debit cards. With blockchain gambling, these issues are addressed. 

Crypto gambling provides a way for players to remain completely anonymous online and improves the overall privacy of each player. When you access a traditional online casino that uses conventional payment methods, you will have to complete a KYC process. This means certain documents must be submitted to the site to provide your identity and location. At blockchain casinos, there is no KYC process in place, and players will always be guaranteed 100% anonymity.

What Is a Blockchain Gambling Site?

To keep it simple, a blockchain gambling website is any site that offers online casino games or sports betting and specializes in using encrypted deposits and withdrawals. At these sites, players will not have the ability to use any traditional forms of payment like e-wallets or debit cards. Instead, the most popular digital currencies will be supported, including Bitcoin, Litecoin, Ethereum, Tether, Dogecoin, etc.

The main principles of these sites are just like those at a traditional online casino. You will have access to hundreds of games from the best providers in the industry and will also be able to review games for free before you start placing any wagers. These sites will host all of the classic types of games, such as slots, table and card games, video poker, scratch cards, and live dealer games.

While the process of playing and winning is the same, there are some major benefits to playing at a blockchain gambling site. The main benefits include:

  • Quick opening of accounts – All you need is an email, password, and username to open an account. Other personal information is not required.
  • Anonymous gambling – No personal information is required, and you will not have to submit any documents.
  • Faster withdrawals – Instead of waiting for sites to approve payments and then issue funds, these sites offer the ability to withdraw money instantly.
  • Provably fair games – All games featured at blockchain sites will be proven fair.
  • Better odds and payouts – Sites that do not use fiat currency are not bound by regulatory restrictions that apply to standard online casino sites. Due to this, you can find lower house edges on casino games and enjoy better odds for sports betting.

How Cryptocurrencies and Blockchain Have Revolutionized Online Gambling

Even though crypto gambling has become quite popular, many people do not understand how it all works. The industry is being revolutionized by the use of cryptos and blockchain, and in the future, you can expect almost every operating site to accept some type of cryptocurrency. In the world of online gambling, the use of cryptos has changed how players can access sites and engage in real money play. Here, we take a look at how these things have had an impact on the industry.

Enhanced Safety and Security

Safety and security are the main concern for anyone looking to engage in real money play at a casino site online. Technology has done a wonderful job in enhancing security measures across the board, but it is still possible for accounts to be hacked. With the use of digital currency like Bitcoin, you can conduct transactions with more protection against hacking. Blockchain technology is one of the safest and most secure ways to conduct any online transaction. With this, it is not possible to alter or manipulate any transactions that are processed. Cryptocurrency gambling also allows users to remain 100% anonymous, which will also increase security.

Better Credibility

While you will benefit from using cryptocurrencies when gambling online, you are not the only one who will benefit. Online operators will also enjoy some great perks to supporting these types of payments. The use of this technology will allow an operator to offer better services to players with improved experiences. Since there is no need to make use of any third-party payment companies, operators are able to provide a secure environment and a trusted banking solution.

Many players find Bitcoin sites to be among the most trusted in the industry, and this will continue as more sites emerge. With digital currency, gamblers can easily conduct deposits and withdrawals securely while engaging in a rewarding gambling experience at some of the best casinos operating online.

Affordable and Fast Banking Option

When players choose to use traditional and conventional methods to fund and manage a casino account, there will be waiting periods and even some fees. These methods are a safe way to engage in play, but there are risks involved. Hackers often have an advantage of various weaknesses at gambling sites that accept traditional payment methods. You run the risk of losing money when conducting transactions. However, with cryptocurrencies, you can enjoy instant transactions and enhanced security measures.

The ability to conduct payments and receive funds instantly is the main benefit for many players. Instead of having to wait for banks to approve payments or casinos to process withdrawals, using a cryptocurrency will allow for an immediate deposit and a withdrawal that will be completed in under an hour. 

You will also be able to avoid fees that may be incurred when conducting payments using credit or debit cards. With cryptocurrencies, there are fewer fees since there are no third parties involved in any of the transactions being conducted. 

Enhanced Promotional Deals

As you have already learned, using a cryptocurrency is a safer and more affordable option. You will avoid fees as a player, and casinos will not have to pay third-party processors to conduct payments. As a result, you will receive more benefits as a real money member. Cryptocurrency casinos offer the best-paying promos to players and have ongoing deals where you can enjoy daily, weekly, and monthly bonus offers. 

Welcome bonuses featured at leading crypto sites are often worth more money than at sites that accept traditional forms of payment. As a player, you will want to find a trusted casino that delivers many promotions, so you have multiple ways to earn free cash and free spins. By choosing a reliable cryptocurrency casino, you can enjoy more promotions and have even more chances to win while playing your favorite games!

 

Pros and Cons of Crypto Gambling

Today, you can find many casinos that have added cryptocurrencies to their list of supported payment methods. While there are not too many crypto casinos operating that solely use these digital currencies, more will start to become available in the near future. Before you engage in any form of gambling using Bitcoin or any other crypto, be sure you are aware of the pros and cons. Gambling with cryptocurrencies is not always the best option for all players.

Here, we have created a list of the main advantages and disadvantages you will face when accessing crypto casinos and blockchain sites. Be sure to review these before you make any final decisions!

Pros:

  • Easy of conducting transactions
  • Enhanced player privacy
  • Better security measures
  • Fast transactions
  • Withdrawals supported
  • Lower transaction costs
  • Better paying bonuses
  • No personal information required

Cons:

  • Cryptocurrencies are highly volatile
  • Uncertain legal status
  • Not many sites operating
  • No centralized authority
  • Many crypto casinos are not licensed and regulated

Get Started with Blockchain and Crypto Gambling

There is no doubt that crypto gambling is here to stay, and over the next few years, we will see many more sites entering the industry that supports crypto payments over fiat currencies. If you are a player and want to see what benefits you can enjoy playing with digital currency, you can find some great sites already operating. Getting started is safe and simple, and in a matter of minutes, you can be playing top-rated games and having some amazing chances to win crypto payments in return for your wagers.

Making deposits at a casino using cryptocurrencies is just like when conducting payments with an e-wallet or credit card. You will first have to register a crypto wallet to hold your currency. There are many to choose from, and once you have an account, you can purchase cryptocurrency. When you are ready to make a casino deposit, you will have to provide the casino with your crypto wallet address and the amount you wish to deposit. Funds will be transferred instantly and you can start wagering on your favorite games!

After playing and winning, you can conduct a withdrawal. This is one great benefit of playing with cryptocurrencies. You will always be able to remove your funds as well as deposits. You will simply access the casino cashier and provide your crypto wallet address. Once validated, you can choose the amount to send, and the casino will process the payment. Your funds will then appear in your wallet and can be used for other purchases.

The Future of Crypto Casinos

Experts say that cryptocurrencies and blockchain will be the future of the industry when it comes to online gambling. The exact future is unclear at this point. One issue that has arisen is that some governments have actively taken steps that ban the use of cryptocurrencies, while others have begun to legalize it. 

There is also an issue for operators that may slow down the emergence of many crypto sites. Volatility is the main concern, and since the value of this digital currency can change quickly and many times throughout the day, it is not considered to be a stable currency. The value changes can make it difficult for casino operators since one unit may be worth $10 when players deposit and only $5 by the time the transaction is completed. The lack of stability is one thing that is holding casinos back from focusing on the use of this currency.

This new technology is still evolving every day, and each day, we are closer to seeing a crypto world of online gambling. Operators will most likely be slow to incorporate this payment option due to the mentioned issues, but you can expect crypto and blockchain sites to be the future of gambling. Offering faster and more secure payments and wide availability to international gamblers, the use of crypto is already a top choice for many real money players. 

While it may be a few years until technology allows for more sites to operate, we can definitely expect that the use of crypto for gambling will continue to increase. Players already realize the great benefits, and these will only improve over time. If you want to use the safest and fastest way to conduct casino transactions, using crypto over fiat currency may be the way to go. 

While there will always be a risk when gambling, you will at least know that all of your personal and financial information will be 100% secure. Since you never have to provide bank details to a casino, this is one of the most secure and preferable ways to enjoy the best real money games offered online.

 

About the author

Brent Dixon is the owner of E-Crypto News and an early adopter of cryptocurrencies. He is a Book editor- that has edited numerous books on Cryptocurrencies. He has been a writer for more than 30 years. Covering everything from Jazz Music to Blockchain Technology. He currently lives with his wife on Miami Beach, Fl.

E-Crypto News Executive Interviews



Automated trading with HaasBot Crypto Trading Bots

Crypto Scams

Millions in Cryptocurrency Stolen by Scammers in the Last Month According to Tenable Research
November 24, 2021
Behind The Scenes: How this Crypto Community Responded to + $50m Hack
October 18, 2021
Crypto Scams
Crypto Scams Still Persistent In 2021, SEC Warns About Red Flags To Watch
September 9, 2021
Poly Network
Here’s How Hackers Stole Over $600 million in the Poly Network Attack
August 12, 2021
The World’s Most Infamous Crypto Hacks and Scams
July 31, 2021

Blockchain/Cryptocurrency Questions and Answers

Crypto casinos
How Does Bitcoin Casino Work + 2021 Beginner’s Guide
November 8, 2021
Cryptocurrency
How to Buy and Sell Cryptocurrency
November 8, 2021
What Are Bitcoin Futures And How Will They Work In 2022?
November 4, 2021
Ethereum
The Unconventional Guide to Ethereum
October 28, 2021
ICo Presale
The Science Behind ICO Presales…
October 14, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin50,930 0.45 % 3.26 % 11.96 %
Ethereum4,321.6 0.29 % 2.99 % 2.76 %
Binance Coin579.02 0.29 % 1.58 % 7.18 %
Tether0.9986 0.03 % 0.08 % 0.23 %
Solana195.17 0.74 % 2.91 % 4.49 %
Cardano1.410 0.52 % 4.85 % 12.24 %
USD Coin1.000 0.14 % 0.20 % 0.17 %
XRP0.8257 0.45 % 3.95 % 16.71 %
Polkadot30.87 2.19 % 17.29 % 10.73 %
Terra70.17 0.86 % 10.90 % 36.05 %

bitcoin
Bitcoin (BTC) $ 51,095.00
ethereum
Ethereum (ETH) $ 4,329.24
binance-coin
Binance Coin (BNB) $ 580.62
tether
Tether (USDT) $ 1.00
solana
Solana (SOL) $ 195.61
cardano
Cardano (ADA) $ 1.41
usd-coin
USD Coin (USDC) $ 0.999486
xrp
XRP (XRP) $ 0.828088
polkadot
Polkadot (DOT) $ 30.66
terra-luna
Terra (LUNA) $ 70.19