Since the very inception of bitcoin back in 2008, it has never seen any drop in its popularity. Bitcoins, along with all other cryptocurrencies, developed a world of parallel economy. Initially, when it was thought that these cryptocurrencies are just another additional asset class for the investors or speculators, that perception was overridden by the popularity and wide acceptance of these cryptocurrencies. This new form of digital currency also made its way through the online arena of gambling, gaming, and lotteries, which is also known as bitcoin casinos.
What is a bitcoin casino?
Bitcoins are a very popular digital currency that operates based on something called Blockchain Technology. There are very few online casinos that accept only bitcoins as a medium of transaction. However, most of the other casinos offer bitcoins as an alternative method of transaction besides the traditional methods like credit or debit cards and e-wallet.
The number of casinos that accept bitcoins is growing very rapidly all over the world, though they are supposed to be subject to local laws, as there are still many countries where these cryptocurrencies are still yet to get a legal certificate. These bitcoin casinos offer a wide range of choices to their players to put the bitcoins in different types of games like traditional casino games, gambling games, sports-based betting, online lotteries, and spread betting.
How the bitcoin casinos work
Firstly, all the bitcoin casinos are fully digital. And due to being digital, these casinos digital all that depends upon the software they are using for the gambling. They develop unique gambling software for their own and the small-scale online casinos; they tend to rent this software and do some modifications to make it unique.
The best part of the software is, it requires very minimal to no human intervention. Even the games which need the intervention of a human dealer, this software is developed in such a way that it can eliminate that too.
However, despite having so many advantages, there are some challenges that these casinos face. Majorly it’s the liability of the casino to convince its players about the fairness of the technology. To do so, most of the bitcoin casinos disclose the algorithm of the software. This is a very good step to showcase the transparency to its players.
Advantages of bitcoin casinos
From the business owner’s point of view, using bitcoins as a mode of the transaction can be profitable as there are no banking-related costs involved. Both deposit and withdrawals are free in the case of bitcoins. As a result, these casinos can pass these additional savings to their players, and payout percentages on games will also be higher for the players compared to any other traditional casino.
Anonymity is another advantage of bitcoin casinos. Even if a player uses a credit card, then also personal information is not secured, and in many situations, the credit card issuing bank might downgrade the customer for using the same in gambling. In the case of bitcoins, players can create separate accounts and use that for online gambling to prevent identity theft.
Is bitcoin casinos legal, or is it under the microscope?
In the case of traditional casinos, it has got its defined rules and regulations in place. While using the traditional mode of payments, it’s easier to track and identify the players, dealers, and casino dealers. But it’s not possible while bitcoins are involved.
Due to the purely digital nature of bitcoins, audit and verification is a big challenge. So fairness of a game also comes with a question mark. And due to so much anonymity, fair business practices also become difficult. Some of the online bitcoin casinos don’t even require any other information other than e-mail and login.
Till now, many countries around the globe do not consider casinos as a legal business, so it becomes more difficult for bitcoin casinos to operate in those regions.
As there is very limited information available to the public on bitcoins, it is not possible to say what is the impact on bitcoin transactions due to the introduction of bitcoin casinos. But it has been noticed that the transaction had increased multifold since the launch of bitcoin casinos back in 2012. So it can be concluded that bitcoin casinos have fuelled the usage of bitcoins furthermore.
Despite its increasing popularity since the inception of bitcoins, and huge acceptance among large corporations, leading software companies, and online casinos, it has always been a hot topic for debates on ethical grounds. It’s always exciting to get involved in something to make money easily, but the players and newcomers in bitcoin casinos should always be aware of the risks, challenges, and the legal aspects of it.