Bitcoin has been around for about ten years now since it was first introduced by Satoshi Nakamoto. It didn’t take long before hitting the ground running. It is now a widely accepted medium of exchange for businesses all over the world.
The gambling industry has not been left behind either. Every big gambling network is now offering Bitcoin as a payment method. Those that do not offer Bitcoin are definitely missing out.
But why are the biggest gambling networks in the world offering Bitcoin as a payment method? Read on to find it out.
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How Bitcoin Evolved
The first block of Bitcoin was mined in 2009, and it became the first decentralized digital currency. Its first purchase was made for a pizza worth about 10,000 Bitcoins. The value of the pizza at that time was less than $20, meaning the value of 1BTC was less than a dollar.
Since then, the value of Bitcoin has experienced ups and downs, but the general trend has been an upward growth in value. The coin has even reached a value of $20,000, at its peak.
While Bitcoin has been used in several industries, there is one area where its use has been embraced wholly. We are talking about the gambling industry where Bitcoin gambling has been a trend among many online players.
Statistics are even showing that online gamblers carry out about 337 cryptocurrency transactions every second. Since the inception of Bitcoin, more than 40000 other cryptocurrencies have been developed with only under half of them being still in use.
Bitcoin and Cryptocurrency Gambling Sites
Casinos and Bitcoin have had an interesting journey since its inception. Half of all Bitcoin transactions, for instance, have been carried out by Bitcoin gambling sites.
However, when the cryptocurrency was introduced, it wasn’t easy for online casinos to embrace them. The cryptocurrency casinos were suspect, which made it difficult for people to gamble through these sites. To understand this, you’ll need to know how casinos operate.
The online gambling industry operates through several licenses and networks. If a person wants to create an online casino, they don’t need to come up with own games or modes of payment. One just needs a cookie-cutter license to do everything for them.
Thus, one needs to take a gaming license from a gaming authority, gaming software, and third-party payment service to process deposits and withdrawals on their behalf. All these systems are available, so there is no need to create your own. This makes it easy to start casinos and give players confidence and a sense of security.
However, it was not the case when Bitcoin came to the fore. The systems were not prepared for it, and casinos that wanted to use Bitcoin had to set up everything on their own. The Bitcoin casinos rejected the gaming authority and third-party payment services like Playtech in favor of obscure software.
Second Wave of Bitcoin Gambling
Because Bitcoin casinos made everything on their own, there were security concerns at the beginning that made many people to shy away from Bitcoin gambling. Casino software developers also ignored Bitcoin gambling so much that they didn’t even care to make any improvements whatsoever. Some even saw them as a fad.
According to The New York Times, when the value of Bitcoin skyrocketed to $1,242, it changed everything. Immediately, more retailers started accepting it as a mode of payment, which drove casino software developers to consider working on cryptocurrency casinos. With the increase in the value of Bitcoin and change in the perception of Bitcoin among gamblers, came the second wave of Bitcoin gambling.
It led to the formation of online casinos that accepted the use of cryptocurrencies as a mode of payment. Today, besides the casinos that offer cryptocurrencies alone as the mode of payment, these establishments and online services allow traditional payments in addition to Bitcoin.
Why Gambling Networks Offer Bitcoin as a Payment Method
The most important reason why the biggest gambling networks in the world offer Bitcoin is that most traditional banks refuse to transfer money for gambling due to legislation. The UK, for instance, banned the use of credit card payments for gambling activities while some states in the US still ban online gambling despite lifting the federal ban on internet gambling.
Alexa Kapinski, managing editor at NJGamblingFun noted,
Gamblers are now using Bitcoin to bypass such laws and gamble online. Cryptocurrencies are not viewed as conventional currency but as properties and, therefore, gamblers do not require bank cards to open accounts with Bitcoin casinos. Besides, most gambling laws refer to banks and not players, and Bitcoin being a decentralized digital currency does not get affected by the laws.”
Also, all payments made through Bitcoin are usually anonymous. When making payment using BTC, individual transactions do not require users to attach their names to the payments. It is, therefore, a great way for people who want to gamble while at the same time protecting their identity when playing online.
According to BBC, most gamblers use Bitcoin as a mode of payment due to its ease of making deposits and withdrawals. Players can also purchase Bitcoins, and they can also mine them, which makes it a convenient payment method.
The Future of Bitcoin Gambling
Cryptocurrencies and not just Bitcoin have a great future and are likely to have a huge impact on the online gambling sector. Soon, most, if not all, major casinos will start offering Bitcoin. It is also highly likely that a third-party payment service will come up, which will enable more casinos to embrace the use of cryptocurrency.
The major problem that’s hindering more casinos from accepting cryptocurrency is its high volatility and fluctuating market. The cryptocurrencies are unstable, and their value might change at any time.
While this may not be a concern for players, it is a big hassle for most casinos. If the volatility of cryptocurrency is addressed, then we are likely to see Bitcoin running the gambling industry.