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    • Crypto Gambling: A Closer Look

    Crypto Gambling: A Closer Look

    By GP News Team Mar 08, 2020
    Crypto Gambling: A Closer Look
    Cryptocurrency is used by many casino and sports betting sites, as it provides some advantages not offered by normal money sites. The digital coinage works well on digital platforms.

    Cryptocurrency is a term that is receiving more and more attention in the world at the moment, especially with such massive concentration placed on technological advancements in this day and age.

    One of the top punters of crypto usage is the online gambling industry, where bold casinos and sportsbooks have begun to accept crypto-tokens as wagers on their platforms. This has opened a new digital world to online gamblers, opening up the market-wide to once restricted regions, as well.

    Quick Crypto Catch Up!

    When one speaks of cryptocurrency, there is still very much misunderstood about the term. While education on the subject has improved a lot, there are still way too many people that are not too sure on what it is, never mind how they can use it to play their favourite casino games. Well, we hope to clear up some of the misnomers around the subject, right here.

    Cryptocurrency is a purely digital currency, which was originally developed as a peer-to-peer payment system. It allows people to transact with one another without the influence of a trusted third-party middleman (banks and financial institutions). The first and largest current currency of its kind was Bitcoin, which was developed in 2008 as a tool to empower the man/woman on the street towards control over his/her wealth.

    Bitcoin was created under the pseudonym ‘Satoshi Nakamoto’. While many people have come forward to claim the currency as their own, some sceptics remain firm on the fact that Satoshi will never be revealed.

    These digital tokens are not represented materially, but rather as codes and hashes. These hashes and codes are mined mathematically from the internet by complexed computers, which search for complicated algorithms on the net. They then translate into code and are then placed on a digital register called a blockchain. Once on the blockchain, it can be transferred, bought, and sold.

    Popular cryptocurrencies used in the gambling business include names like Bitcoin, Etherium, Dash, Litecoin, Bitcoin Cash, Dogecoin, and Torrent to name a few. Each is run by its own Blockchain register, of which none are tied to a central controlling server, but rather spread out over many online nodes across the world. All transactions are verified by each node before authentication is completed, rather than a central controller.

    Bitcoin Benefits

    There are clear benefits to using Bitcoin and other cryptocurrencies on casino sites. The advantages include:

    • Fast Payments and withdrawals: Because the transaction is decentralised, no middlemen authorities are slowing the transfer process down. Once all the server nodes verify that the funds requested line up with the documented hashes on the blockchain, the funds will reflect.
    • Secure Payments: Once a transaction is done, it cannot be reversed or cancelled, meaning that committing fraud is next to impossible to do. Once the transfer is done, it will reflect on the blockchain, providing irrefutable proof of payment, which will benefit players if disputes arise from the casino side, and vice versa.
    • Cost: No middle man means no administration fees. Cryptocurrency is also universal and the blockchain transcends borders, meaning that there are no forex costs on transfers either.
    • Anonymity: Blockchain transactions are unregulated, which means that you do not have to supply your identity when making a payment. For this reason, you can gamble under a pseudonym username, granting you the highest degree of privacy possible.
    • Decentralisation: Because crypto is decentralised, the laws that apply to real money do not apply to these tokens. This means that players that are restricted from betting at casino sites with their currency, now have less restriction on their gambling when using Bitcoin and other alternative coins.

    Crypto Cons

    With all of the good, there is a little bad:

    • Because crypto is decentralised and therefore unregulated, it does give room for crime to prevail, including money laundering, tax evasion, and payment for criminal acts. Top casinos usually have protocols in place to curb these activities though.
    • There is no fail-safe for stored funds. If you lose your public or private keys, you will lose all of your digital money in that same wallet, as there is no middle man who can tap into a central server to recover your account for you.
    • Cryptocurrency is volatile. Because the value of true crypto is not tied to any central reserve, but rather to the popularity given it by its buyers, the value of the currencies can change vastly from week to week. Though this is not as problematic in the online casino world, it makes other forms of usage in the retail and service industries very challenging.

    Mechanics of this Mastermind

    In order to play at an online casino, you will need to get some cryptocurrency in your possession. The easiest way to do this is to purchase it on a Bitcoin exchange with your debit or credit card. The currency will need to be stored in a digital wallet for safekeeping and easy access. There are various ways of storing Bitcoin, either online, in-app, or offline, but as long as you have access to the hash codes, you will be able to use it easily anywhere it is accepted.

    The easiest and most convenient way for crypto gamblers to store and access their currency is by using one of the wallets offered to you at leading exchanges.

    When you want to play at a Bitcoin casino, you will need to register a profile with the site and then head over to the cashier's desk to make your deposit. The casino will have a crypto wallet address on their site, which you will enter into your wallet after selecting to make a payment to the operator. In order to release the funds, you will need to remember your private key code to release the funds.

    Gambling Going Forward

    The rate of growth in the crypto sphere is on the up and up. As people are becoming more tech-savvy, so the willingness to take a chance is evident. There are already some great casinos out there accepting the currency, such as BitStarz, BitCasino, and more. More casinos are sure to follow once further regulation is imposed. Regulators, such as the Malta Gaming Authority are already working on ways of regulating Crypto casino play and sportsbook. It’s just a matter of time before the world follows suit.

    Tags

    cryptocurrency bitcoin crytpo casinos technology

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