Cryptocurrency completely revolutionized how people make transactions. The new currency formula grew so popular that as of March 2021, 14 percent of Americans owned some type of digital currency. Of this number, about 46 million people owned Bitcoin. The appeal of cryptocurrency has extended beyond regular financial transactions and made its way into the gambling industry. The security, privacy, and anonymity that bitcoin and other digital currencies offer makes them highly attractive to players, which now allow gamers to transact through them. Here is a closer look at how this adoption of cryptocurrency is impacting these casinos and the gambling industry at large.
Gambling exists in a restricted way in some jurisdictions, making anonymity a key selling point for most gamblers. If a transaction model can promise anonymity, which cryptocurrency does, gamblers are all for it. Bitcoin is not completely anonymous but users are identified through numerical codes instead of personal details like ID number. This system ensures that users cannot be tracked publicly and their transactions cannot be traced back to them. For gamblers who wish to keep their gambling activities private, bitcoin offers an unmatched solution.
Safety is a major concern for gamers on top casino sites like Betway playing poker, slot games, blackjack, and other casino titles online. Cybercriminals seeking to tap into the lucrative online gambling market prey on gamers and steal their personal and financial data. In response, casinos have enacted multiple security measures on their sites – think AI, digital encryption, and two-step verification. However, none has been as effective as cryptocurrency. Bitcoin transactions are encrypted with a private and public key only accessible to the owner. In the event your private key information is leaked, you can immediately develop a new one. This means that nobody has access to your wallet but you, which keeps your assets safe.
Currencies like bitcoin run on the principle of blockchain technology, a ledger of decentralized computer nodes that maintain a secure and immutable record of transactions. And while no one can trace transactions back to you, the public dispersion of data means you cannot reverse, forge, or otherwise manipulate a bitcoin transaction. This has increased the level of transparency in the gambling industry, improving the gambler-gambling site relationship immensely and growing the marker further.
It takes less than a few minutes to complete a bitcoin transaction. Previously, standard banking processes meant that you had to wait several hours or even days to withdraw your winnings from your favorite gambling platform. Bitcoin transactions do not involve a third party – the wallet owner authorizes a transaction and the ledger completes it. This almost-immediate transaction process has streamlined online gambling, making it faster and more enjoyable.
Reduced Transaction Fees
The lack of a third party also means that bitcoin features zero transaction fees. There is currently no viable form of taxation for bitcoin, either, which means gamblers get to keep more of their winnings. In fact, you will make more wagering with bitcoin on the same game than you would with cash.
What Is the Future of Bitcoin in the Gambling Industry?
Like all cryptocurrency, bitcoin is a highly volatile asset, with values changing drastically from one day to the next. This high volatility, while risky, also means that bitcoin has a high return potential. In fact, some experts believe the currency will be worth an estimated $500,000 by 2025. It is for this and other reasons like security, faster transactions, and anonymity that bitcoin holds a promising position in the gambling industry. Over time, it is highly likely that more and more casino platforms will adopt cryptocurrency to fully harness its benefits for gamers.