Cryptocurrencies are digital currencies that use cryptography – a technique for encoding data to make it unreadable to anyone who lacks a password. Modern cryptocurrencies are decentralized systems based on blockchain technology, thus enabling transactions to be anonymous while publicly available. Cryptocurrency has come a long way since Bitcoin made its first appearance in 2009 and since the first cryptocurrency transaction took place in 2010. The past decade has seen a surge in the popularity of cryptocurrencies. Various businesses in the online space, including online casinos, are now allowing their customers to transact with cryptocurrencies, an innovative and unique payment method for those who are visiting these casinos, usually referred to as crypto casinos.
Through this marriage between cryptocurrencies and online casinos, gambling has entered a new era, wherein players revel in heightened privacy while casinos bask in significantly diminished operational costs, leading to a rapid rise of online crypto casinos. But are they here to stay? And which are their pros and cons that will eventually determine that? Let’s take a quick look.
The first, and probably most important advantage is privacy. The best crypto casinos offer anonymity and security in their transactions, meaning that personal and financial information is kept private. Transactions are also harder to track due to cryptocurrency being decentralized. Hence, contrary to conventional financial systems, where transaction trails might be traced, the use of cryptocurrency affords players the luxury of veiling their identity.
It also takes less time to complete transactions at crypto casinos compared to traditional payment methods. This is a significant advantage, as with cryptocurrency there is no third party involved in the payment process which is not the case when using PayPal, credit cards and most other payment methods that might even take hours to be processed. Faster transaction times are especially crucial for players who want to quickly access their winnings. Moreover, players are able to receive their winnings in cryptocurrency without having to go through an exchange.
Cryptocurrency transactions are also cheaper, as they work through the blockchain. This means that transactions are made directly from the crypto wallet to the online casino, whereas fiat currency transactions usually come with fees or pass through several institutions – that will keep a portion – before they get to the online casino. This means that online crypto casinos are a better choice for players who want to maximize their winnings.
While it is common practice for all online casinos to offer bonuses and promotions in order to attract or retain players, many of them offer an array of promotions geared exclusively towards those people who are depositing using cryptocurrency. This is another perk for those who prefer crypto casinos.
Nevertheless, even the best crypto casinos have their disadvantages. Perhaps the biggest one is volatility. Since cryptocurrencies usually fluctuate in price, occasionally with significant ups and downs, there is a chance that players might witness the value of their winnings drastically dwindling subject to the extant cryptocurrency market conditions. On the other hand, they might see quite the opposite, so it is a double gamble.
There are also legal and regulatory challenges. With no license and no regulatory body, players have very few options if any problems arise with the crypto casino they are playing at. There are quite a few gray areas in many jurisdictions when it comes to the use of cryptocurrency in online gambling. On top of that, different countries enact new regulations every other day, making it difficult to keep track of crypto progress. Failure to adhere to set regulations may leave both you and the online casino liable to legal action.
At the end of the day, it all has to do with what each individual considers to be more important when it comes to online gambling. According to NBC news, the crypto casino industry pulled in $10 billion last year alone, which was a 64 percent increase from 2020. The only thing that’s sure is that since the technology is constantly evolving, it only makes sense that crypto casinos will continue to expand and maybe there will come a time when they will be dominating the online gambling industry.
