Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
The next generation of the Internet will be based on decentralized technology. Popular online entertainment apps are already migrating to the blockchain. Blockchain has proven to be an ideal option for solving online casinos' major problems. Its use in payment processing makes the gambling industry transparent, but also increases the efficiency of transactions significantly.
However, there are drawbacks to online gambling sites, just like everywhere else. Today, let's look at some of them in more detail.
Bitcoin is volatile.
The main disadvantage is the unstable rate of cryptocurrency. It can give both benefits and lead to losses. In order not to lose money, albeit virtual, you will have to constantly monitor the crypto exchange rate. Well, and convert it to dollars or back in time. A serious disbalance between the money that players have invested in bitcoins and other coins, and the amount that is eventually withdrawn from the account, can be a good reason to refuse to use them. This is why some gamblers still prefer the more stable dollars and euros.
It is a work in progress.
Even though Bitcoin and blockchain have already become quite a significant part for many people, they are still too new and progressive technologies, and almost no expert is willing to predict their evolution. It is impossible to predict what changes in the market will cause bitcoin to increase or decrease. Of course, such unpredictability does not inspire confidence in users.
Not a “household” payment method.
It did not take too long for the option to pay with crypto in online casinos to appear. First of all, bitcoin came into the sphere of gambling entertainment. Currently, dozens of casinos offer players to choose as an alternative currency to register Bitcoin (BTC) and Bitcoin Cash (BCH).
The number of all kinds of altcoins, both those based on bitcoin and those developed from scratch, currently reaches almost 2,000 varieties.
The most popular of them are widely used in online casinos as an alternative currency. Thus, at the sites of certain online casinos you will find:
- Bitcoin Cash (BTC)
- Ethereum (ETH)
- Litecoin (LTC)
- Dash (DASH)
- Bytecoin (BCN)
- Monero (XMR) and others
If you visit Bitcoin casino sites, you will see that some of them offer to choose bitcoin or one of the altcoins as the payment currency. This makes sense because crypto is first and foremost a digital currency.
Other sites consider bitcoins as a payment method, and for transactions during registration users are offered to choose one of the classical currencies - dollars, euros, hryvnias, tenge, etc.
This difference in approach to defining the bitcoin at online casinos creates both advantages and disadvantages. For example, in those casinos where crypto is the method of payment, constant funds transfers may be associated with additional fees and/or losses when transferring funds from the traditional currency. However, since many slot machines and other casino games are designed with only classic currencies in mind, the process of playing and calculating how much a player has spent, won, or bet can be easier.
If, however, you no longer use euros and dollars, but only accept crypto, it is more likely that casinos with bitcoin currencies will work for you. The need to transfer to other currencies will be eliminated, and the deposit payment will be carried out using standard bitcoin addresses.
It is untraceable
But is Bitcoin completely anonymous? The most inquisitive will probably want to understand where the anonymity of BTC transactions ends.
Except for Lightning Network payments, all Bitcoin transactions are stored in a decentralized database, that is, in the blockchain. Along with each transaction, the sender's and recipient's wallet addresses are stored. Because it is a blockchain, the data goes there once and for all, with no way to remove or modify anything.
This also means that bitcoin wallet activity can be tracked. This is not the easiest thing to do, but there are special programs and resources with the appropriate functionality. Therefore, if a wallet is "tied" to a specific person, it is possible to find out from transfers what else that person spends bitcoins on.
Irreversible Transactions
In this section, the main idea is that the loss of a private key is irreversible. If the key is kept by one user, he irrevocably loses access to the assets.
Still Progressing
As it was mentioned above, the crypto gambling industry is at the stage of active progress, but at the same time, many online casinos have such a problem as the lack of certain legal status. In many countries, the authorities have not yet legalized the circulation of digital currency. As long as the state has not indicated its attitude to it, users cannot be sure of the legality and safety of their funds.
Scamming Gambling Website
Scammers are everywhere, and to avoid meeting with them when choosing a casino is recommended to pay attention to the following aspects:
- Jurisdiction
- Licensing
- HTTPS support
- Software
- User Agreements.
- Reviews.
Legality
Licensing is a tricky topic when it comes to casino platforms that accept bitcoin. The main problem with this issue is the decentralized and unregulated nature of the cryptocurrency, which ensures its global availability, speed, and lack of transaction fees. As a result, the most reputable licensing authorities have refused to license casinos that serve this currency.
Security
Transactions online cannot be traced, which means users' money is protected. In addition, transactions must be confirmed before they are added to blocks and completed. This eliminates the risk that someone will rewrite the results of transactions or steal money from the owner.
However, the BTC holder is personally responsible for the safety of his coins. If he loses the private key to the cryptocurrency wallet or gives it to a third person, he could lose his savings.
From this point of view, bitcoin's security is lower than that of banks. Account-holders at financial institutions can cancel disputed transactions to get their money back.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.