Bitcoin gambling currently represents just a small fraction of the total revenues that are being generated by the online gaming industry. However, as this well-known “cryptocurrency” continues to gain global market share and become increasingly more mainstream, this will undoubtedly change in the years to come.
What are Bitcoins and what it Bitcoin Gambling?
In the simplest terms, Bitcoin is a form of digital currency. Controversial from the outset, Bitcoin grew out of the 2009 financial crisis that took hold as the banks in the US collapsed into default. Bitcoins continue to flourish thanks to some compelling advantages they offer over more traditional forms of currency. For example, Bitcoins require no middle-men to regulate the financial transactions, which can reduce or eliminate unnecessary fees. Bitcoins are not backed by the Federal Reserve, or any centralized banking system. Nor are they backed by any government authority; it’s fully decentralized. Consequently, it is considered to be an online currency.
Bitcoin gambling is exactly the same as any other form of online gambling except for the fact that all financial transactions are conducted using the virtual currency. Accounts are funded with Bitcoins and winnings are paid out in Bitcoins. Every other facet of Bitcoin gambling is identical to traditional forms of online gaming.
Bitcoin Basics and the Benefits of Bitcoin Gambling
– Bitcoin is a virtual currency that is used for conducting online financial transactions such as purchasing or trading goods and services.
– Bitcoin is dependent on the Bitcoin payment system, which is basically a public ledger that tracks every transaction ever made, and vice versa. You can’t have one without the other.
– Bitcoin offers minimal and sometimes no transaction fees whatsoever. This benefits not only the consumer, but the businesses they deal with as well. For Bitcoin gambling afficionados who make frequent purchases, this can add up to big savings.
– A big complaint among gamblers is how long it can take for their deposits and withdrawals to be credited. Bitcoin transactions are instantaneous in most cases, depending on whether or not the merchant (in this case, the casino) requires confirmation prior to processing the transaction.
– All consumers, not just gamblers, are concerned about the inherent dangers of a digital marketplace. Not only are people concerned about losing their money, they are also concerned about the potential theft of their personal information.
Bitcoin transactions are conducted through the use of a public and private key which are used to certify transactions. Funds are secure and personal information is fully protected.
– Bitcoin transactions can only be retrieved with the recipient’s express permission, which reduces the risk of fraud. And, because personal information is protected, fraud and chargebacks are much less likely to occur.
– Unlike traditional forms of currency, Bitcoins are not subject to inflation. This is because the total number of Bitcoins that can be created is capped at a maximum 21 million coins. In fact, deflation is a more likely scenario due to the fact that as usage grows, goods and services may become available at a lower cost.
Despite the many advantages associated with the use of Bitcoins, there are still some things that are unknown and consequently the merits of its use are still hotly debated. On the surface, Bitcoins could be a great match for online gambling. However, it’s still early days, so think carefully before playing at bitcoin casinos. As Bitcoins become more widely used over a longer period of time, Bitcoin gambling may be a great option for many reasons, but we’re not there just yet.