The Impact of Bitcoin on Online Gambling

Satoshi Nakamoto developed Bitcoin not to enhance the process of sending and receiving funds in online sportsbooks and casinos for actual money. The pseudonymous creator of BTC, however, envisioned developing a decentralized currency that would be beyond the control of banks and governments.

By accomplishing this, Nakamoto also established the blockchain technology, which underlies Bitcoin. Blockchain has some features that can be beneficial for gambling sites and players alike, including:

Anonymity

Bitcoin and cryptocurrencies never link your identity and name with transactions.

Decentralization

No one controls the public blockchain (that is open and viewable to everyone), such as Bitcoin.

Protection against Hackers

Bitcoin is one of many secure public blockchains that have never been hacked.

Transparency

Anyone can see and verify an (anonymous) transaction on the public blockchain.

Again, Nakamoto was more interested in Bitcoin and blockchain than gambling. However, his invention indirectly helped online gambling to thrive and operate well with customers. The above blockchain features make BTC particularly attractive to gamblers, especially those who are keen gambling with bitcoin .

In the following sections, we’ll explore the impact of Bitcoin on online gambling. Simply put, every casino player or sportsbook participant can appreciate anonymous and peer-to-peer transactions. Meanwhile, operators can offer their clients a convenient way to deposit and withdraw funds.

Positive and Negative Impact of Bitcoin on Online Gambling

The impact of Bitcoin on online gambling seems to be largely positive, particularly in light of the excellent attributes described above. The applicability of BTC to mobile gambling also has a few negative connotations. Here's how Bitcoin has positively and negatively impacted the gambling industry.

Positive Impact

• Direct Relationship Between Players and Operators: With Bitcoin, players and operators are able to make peer-to-peer transactions. They are not required to rely on third-party approvals of banks and credit card processors in their interactions with each other.
• Lower Cost for Both Parties: Bitcoin eliminates middlemen and only requires low fees that go to miners who execute the transactions. In doing this, players and operators avoid the outrageous cost of traditional banking services.
• Higher Bonuses: Online gaming websites have been generous with the amount of money saved in reduced payment processing charges. They pass on the savings to members as colossal bonuses.

Adverse Effect

• Lost Money of Members: Although very minute, there are limitations on entering the correct Bitcoin address when making a deposit. Members might lose their money forever. No third party, like a bank or e-wallet, will ever reimburse the wrong money.
• Expansion of Unlicensed Online Gambling Sites: Most online sportsbooks, poker rooms, and casinos are licensed and thus subject to the third-party scrutiny. However, due to Bitcoin's nature of decentralization, it provides operators with more space to operate without a license.
• Unstable Bankrolls and Revenue: BTC has been volatile since it entered the market in 2009. Volatility makes it difficult for both players (bankroll) and operators (revenue) to manage their finances.

Benefits of Playing with Bitcoin

As you can see, the overall impact of Bitcoin to online gambling is two-pronged. But the benefits to the player using BTC outweigh the loss. Here, you can see the benefits of playing and depositing with Bitcoin in online casinos.

Safety

Bitcoin is a very secure means of exchanging funds since it makes hacking and theft almost impossible. Furthermore, all Bitcoin exchanges are anonymous, which is better if you prefer keeping things private while online gaming.

Decentralization

BTC, Bitcoin, or a "currency without a country," is a decentralized exchange system, not controlled by governments. This decentralization also ensures that your deposits on a gambling site will never be rejected by third parties.

Speed

Bitcoin withdrawal and deposit are rapid and keep pace with other payment systems. You will enjoy rapid payouts through BTC, and you will get your money within hours or even minutes.

Low Fees

Standard bank operations involve paying 2% to 15% to make deposits and withdrawals. Bitcoin pays mere fractions (less than 1%) to miners in the event of transactions.

Big Bonuses

Bitcoin casinos offer the largest bonuses available in the market, with the minimum being 1 BTC and upwards. The large bonuses are often accompanied by fair terms and conditions.

Honesty of Play

Provably fair technology used by casinos ensures fairness in their games. Thanks to BTC integration, such technology makes the game transparent and fairer for players.

The Positive Impact of Bitcoin Shall Remain

You can have faster banking transactions, less fees, and secure transactions playing with BTC. Additionally, you do not have to worry about third-party payment processors or banks declining your deposits.

Hence, Bitcoin is a good addition to the world of internet gambling and is most likely to be in fashion among players for the next few years.