Advantages of Bitcoin Casinos Override Any Potential Drawbacks
As blockchain technologies and the cryptocurrency sector continue to build momentum after their phenomenal expansion in recent times, iGaming is leading the way in providing additional scope for their application. Online casinos particularly are embracing these developments, and new possibilities for both gamers and operators are emerging. In this latest analysis article, we talk about some of the key points driving this trend, including how cryptocurrencies and blockchain technologies are impacting industry expansion, for better or worse, and how the sector is likely to shape up in the near future.
Compared to fiat currencies, cryptocurrency turnover is still small. However, according to Google Trends statistics for the search term "bitcoin casino," it's apparent there is a steady growing interest in the topic, states an iGaming aggregator that also identifies several reasons why the popularity of the iGaming trend is growing.
Blockchain technology provides an extremely powerful encryption. Each transaction is added to a ledger — an irreversible block of data — and verified by a decentralized network of blockchains. Transactions occur directly between crypto wallets, with no third parties involved, making fraudulent activities less likely and eliminating the need to pay transfer fees.
National currencies are backed by governments, but cryptocurrencies are supported by a decentralized ledger that records all transactions. This ledger is published on a vast database with millions of copies. The effects of this are: anyone who has access to the network can validate a transaction; secondly, Bitcoin history cannot be forged. Any change in one block would affect all blocks in the network. Security and transparency of decentralized public ledgers are enormous advantages for the majority of players.
In cryptocurrency casinos, blockchain technology is used in development such that payments can be made automatically through smart contracts. However, launching a casino purely based on blockchain technology could limit operators to games also developed on blockchain technology. Alternatively, more gambling sites are embracing cryptocurrency payments as an addition to existing fiat currencies, which helps them draw in more gamers.
Why Do Players and Operators Love Crypto Casinos?
In sum, according to our analysis, there are several reasons why operators open crypto casinos—and why players go to them. Operators believe crypto casinos are worth it because cryptocurrencies are secure, transparent, and a success with their target market. Players go to crypto casinos for security and transparency, but they also enjoy speed, anonymity, and decentralization.
Additionally, crypto casinos tend to use smart contracts with automated payouts and provably fair mechanisms that automatically verify the results of games. This definitely gives a greater feeling of trust to a lot of players.
Withdrawal time is also a concern for gamblers. Most payment systems involve intermediaries such as banks or payment service providers. That makes withdrawal requests a matter of hours or even days. Cryptocurrency withdrawals, on the contrary, are wallet-to-wallet, and in some cases, the registration of the transaction is a matter of a few minutes.
Are There Any Disadvantages to Crypto Casinos?
Crypto casinos are a fairly recent phenomenon, and thus there are extremely few laws (in any market) that directly regulate them.
Gambling legislation covers the following aspects:
- Operator transparency
- Anti-money laundering (AML)
- Counter-terrorism financing (CTF)
- Fraud prevention
- Responsible gambling
Nevertheless, due to the increased anonymity cryptocurrencies promise (blockchain registers wallet addresses but not the holder's name or email), governments might potentially view crypto gambling as a channel for illegal financing and enforce tighter regulations in the future. But Slotegrator doesn't believe this will happen anytime soon.
Another potential downside is currency volatility. Price peaks and troughs in Bitcoin, Ethereum, and others have kept investors on the edge of their seats in recent years. Price fluctuation can add an element of unpredictability to operators' funds.
Overall, however, the advantages of bitcoin casinos "greatly outweigh" any potential downsides, opines Slotegrator.
What Are the Future Prospects?
Taking into account the popularity of cryptocurrencies, we expect the number of new blockchain casinos to grow. Online gambling websites have a tendency to follow the demands of their players in literally every detail: game content and provider diversity, quality of service, mobile compatibility, bonus programs, etc. Taking into account the legalization of gambling in various countries, payment systems remain one of the primary factors in player acquisition and retention.
The future of iGaming certainly includes a trend of adopting Bitcoin as a payment and deposit method. Therefore, the need for blockchain casino development will remain relevant in the long term.
