What Is A Bitcoin Casino, And Where To Find Them?
If you have closely been following the fintech industry, you should by now know that one of the buzzwords that have been trending for the last decade is Bitcoin. For those who may not know, Bitcoin is a digital currency that can be used to make transactions using a distributed ledger system called a Blockchain.
With the growth of cryptocurrencies, many industries have taken advantage of the advantages that these currencies have over the fiat ones. One of the major merits that digital currencies possess is the security and privacy of the transactions thanks to the immutability of the blockchain.
Security and privacy are some of the main reasons industries like online gambling have started adopting the use of digital currencies to do their transactions. The use of digital currencies has led to the birth of Bitcoin casinos – the most trending gambling platform at the moment.
What Is A Bitcoin Casino?
Bitcoin casinos refer to online gambling platforms that use Bitcoin currency or other cryptocurrencies as their means of doing transactions. Some of the Bitcoin casinos also use the blockchain system as their backbone system in transferring data.
Most of the Bitcoin betting platforms do not use dollars or any other currency in doing their transactions, they instead use the coin for deposits and making payouts as well. For those who may not know, Bitcoin is the most famous cryptocurrency that was invented in 2008. Since then, its value and userbase have been growing. Its value is currently at around $10,000 per Bitcoin.
So, in simpler terms, casinos (online gambling platforms) that uses Bitcoin as the means of doing payments and making deposits are what we refer to as Bitcoin casinos.
Some other gambling sites are using other cryptocurrencies besides the specific coin. However, the mentioned one is the most famous digital currency, and most online casinos prefer using it over other digital currencies whose future is not as certain as that of Bitcoin.
Is Bitcoin Casino Legal?
Bitcoin casinos legally operate mainly in countries that accept the use of cryptocurrencies. Due to the uncontrollable nature of digital currencies, there are several countries like China and Colombia that do not allow the use of cryptocurrencies as a means of payment.
However, a good number of countries appreciate the many benefits that digital currencies bring to the fintech industry and have accepted them legally operate.
Due to the fact the complexity involved in tracking Bitcoin transactions; people still do these transactions even in the countries that do not allow digital currencies.
How Do The Casinos Operate?
Just like the cryptocurrency, a good number of Bitcoin casinos use the blockchain system as the backend platform when it comes to transferring data and making transactions.
Just to tell you a little more about Blockchain technology – it is some form of digital ledger that enables the transfer of data from one computer to another in small chunks called blocks. The connections of these blocks are what creates a Blockchain. Data transfer in a blockchain system moves from peer to peer and doesn’t involve central servers.
Unlike other types of online gambling platforms, some of the Bitcoin gambling platforms do not need central servers to operate, all their data is purely transferred over the blockchain. However, most of the casinos simply use the coin as the means of making payments and accepting deposits.
Transaction Methods in Bitcoin Casino
There are even some Bitcoin casinos that still use other payment methods besides the cryptocurrency to do their transactions. Using Blockchain to host an online casino system is possible but it has several bottlenecks since the online casino itself has limited control over how the data is transferred on the blockchain.
With such challenges, most of the Bitcoin casinos have chosen to use the currency for only accepting payments and nothing beyond that.
Like any online casinos, Bitcoin casinos also partner with game software developers to supply them with games on their platform.
The experience of playing games on the casinos is very similar to that of the normal online ones. The only difference is while making payments, you’ll need to have a Bitcoin Wallet because your Wallet number will be needed when you are signing up as this is where your payouts are sent when you win.
What is Included in The Casinos?
Bitcoin casinos also have a wide range of games that include table games like Poker and blackjack. They also have games in other categories like slots and fishing games.
The way these games are played is entirely the same as playing the games on any other online casinos. So, don’t be afraid of trying out these casinos simply because they are Bitcoin casino. Every other thing besides payments is similar to what you’d get from another type of online betting site.
Why Play In Cryptocurrency Casinos?
Casinos that use Bitcoin to process their transactions enjoy all the benefits of transacting through digital currencies. Some of these benefits include;
a) Small Transactions Fees
The fact that Bitcoin has no particular company that controls it means the only costs incurred in processing payments is the commission given to the miners who put up their computers to act as nodes on the blockchain network.
Not having a centralized system leads to a significant drop in transaction fees. With low transaction fees, players can make their deposits and also receive their payouts without feeling a lot of impact in terms of the cost of transferring funds.
b) No Need To Do Currency Exchange
For as long as you have your Bitcoins on your wallet, you will be able to make your deposits without having to change them into dollars or any other fiat currencies. This kind of system makes it more convenient for the players to do their transactions.
It is also less costly. The fact that Governments have limited control over these coins makes it easier for even foreign players to use a Bitcoin casino with limited challenges in terms of currency exchange.
Many people would love to do their online gambling without being tracked by third-party companies and governments.
Using traditional payment methods means companies that own these payment platforms can know how you are spending your money. This leaves your fate in their hands in case one wants to get your information regarding how you spend your money.
On the other hand, Bitcoin transactions do not involve third party companies in the middle of the transactions. Everything happens in a peer to peer nature, which makes it hard for any third-party company to get information regarding your gambling activities.
The issue of privacy is one of the main reasons that has led to the growth of Bitcoin casinos – people love their privacy!
d) It Gives You A Chance To Bypass Geolocation Restrictions
For instance, several countries do not allow online gambling, and any transaction that is seen to be heading to an online casino is canceled immediately by the financial systems of these countries.
However, with a blockchain system, there is no way of tracking these transactions since they don’t go through the central servers of any financial institutions in those countries.
This allows people interested in gambling but within countries where it’s not allowed to also get involved. So, if you are in a country that restricts online gambling, one of the ways that you can bypass these restrictions is through playing at a Bitcoin casino.
Impact Of Bitcoin Casinos On Cryptocurrency Transactions
The online gambling industry is big and unstoppable by anyone because people love gambling. That’s why even in countries where gambling is not allowed, there are still online casinos that are based there.
The growth of Bitcoin gambling platforms means more transactions are being via Bitcoin’s blockchain. This at the end of the day makes the particular cryptocurrency more popular and also earns its miners more commissions.
Challenges Faced By The Casinos
Bitcoin brought a new way of transferring money from one person to another. However, it is still criticized by some financial experts who don’t believe it is a more feasible alternative to the current payment methods that use traditional currencies.
This means all the casinos and players that use Bitcoin as their mode of payment still get a couple of challenges as a result of using this payment method.
Some of these challenges include;
a) Bitcoin’s Value Is Unstable
The fact that there is no central authority that controls the transactions done on Bitcoin means the value of this currency is controlled mainly by the market forces of demand and supply.
The current value of one piece of BTC in Ringgit Malaysia is around RM 43,180. (10 Sept 2020)
Therefore, whenever there are volatile changes in the market forces of demand and supply, the value of the Bitcoin will be highly affected. This is something that affects both the related casinos and players as well.
b) There Are Still People That Are Skeptical About Digital Currencies
The fact that this currency has been around for a few years means some people still doubt whether it will be around for many more years ahead. People who think in this direction will likely not be confident playing at a Bitcoin casino.
It is for this reason that some Bitcoin casinos still allow payments using traditional currencies like dollars. This gives the players to choose the payment option that they are comfortable with.
c) It Is Not Easy To Buy Bitcoins In Some Countries
If an online casino only accepts Bitcoins, it makes it hard for people in countries that don’t allow cryptocurrencies to access such a casino. This is because they will find it hard to find a reliable source to buy the cryptocurrency.
In this case, they may have to use someone from another country to help them buy the Bitcoins on their behalf, which is a lengthy procedure. This at the end of the day reduces the userbase of such casinos due to these limitations.
d) Transactions Are A Little Slow
The fact that data goes through several verification processes increases the time required to process a transaction. With other payment methods like VISA, most of the transactions happen in real-time.
Consequently, a casino that only accepts Bitcoins will often find issues in terms of the processing speed of its transactions. However, the cryptocurrency community is working on this, and soon we expect the transactions to be much faster than they are today.
e) Reputations For Criminality
Bitcoin in its early days was used by lots of criminals and scammers on the internet, which made most people uncomfortable using it at the start.
However, this is slowly changing as many people are now accepting the fact that Bitcoin can be used for making normal transactions and not only illegal ones like it was in the early days.
What Are The Popular Bitcoin Casinos?
There are currently limited choices of online casinos that accept cryptocurrencies on their platform. Here we listed some of the popular ones that are trustable and reliable;
BitCasino.io was the first fully licensed Bitcoin online gambling platform. The authorities in Curacao, The Netherlands Antilles authorized this in 2013. This casino uses the interface CoinGaming which includes games from world-leading software developers such as BetSoft and Microgaming.
These are widely available over many various devices via your web browser. While the range of games is the same as the other cryptocurrency betting platforms, BitCasino distinguishes itself by creating a consistent public image and providing integrated sports betting.
MBit Casino, managed by Direx N.V., is amongst the most popular Bitcoin Casinos, that provide the best offers, and more. The platform has received great feedback from many analysts since its launch in 2014.
It promises to also be “the go-to platform for Bitcoin entertainment for a growing number of people across the globe.” And to achieve this mission, mBit ensures that customers like you have the best experience possible with multiple games, lucrative incentives, and pleasant support personnel.
One of the latest and trendiest online casinos in Malaysia with the largest pool of active players. As there are no Bitcoin casinos currently in Malaysia, me88 aims to be the first to offer this service in the country.
The casino has been offering superior services and online entertainment to all of its players. This is done possibly with the wide variety of betting games and great customer service that is personalized to each and every player of the platform.
Players are able to expect the first online casino Malaysia that offers cryptocurrencies from me88 Malaysia within the next few months. Check out the official website here at www.me88my.com.
Bitcoin casinos are steadily growing in popularity thanks to the many advantages that using the currency as the payment method brings to these casinos.
The privacy and immutability of Bitcoin transactions make it possible for people who want their identity to remain private more comfortable using Bitcoin casinos over other forms of online gambling sites. This is because the information needed while opening a Bitcoin wallet is only your username, password, and email. Nothing else more than that!
Despite their rapid growth, Bitcoin casinos still have a lot of work to do in terms of making the idea understood to the people that are skeptical about digital currencies.
This can be done by educating the players about how digital currencies work and the many advantages they have over the traditional currencies they normally use. With this kind of knowledge, it will be pretty easy to attract more players on board.