The World of Crypto Gambling – An In-Depth Look at Bitcoin Casinos
In 2009, when bitcoin came into the spotlight, many thought it would be a gimmick fad. After all, how could you create, let alone use, a virtual currency? Fast forward a few years, and it is the leading currency in a market of over 22,000 cryptocurrencies valued at over $1 trillion.
Within three years of Bitcoin’s white paper going public, online casinos began to pick up support for the currency. Soon after, the first ever bitcoin casino, which accepted only the famed cryptocurrency as a deposit method, was launched.
Today, many casinos accept crypto alongside fiat currencies and those that only accept crypto—specifically bitcoin. But how do these casinos work, and are they really that different from traditional online casinos?
If you’re curious about the intriguing world of Bitcoin casinos, join us on this journey as we venture into these virtual gambling hubs. We’ll unravel the inner workings, highlight their unique strengths, and help you decide whether your next gambling adventure should lead you to one of these digital gaming destinations.
While almost everybody knows that bitcoin is a cryptocurrency, few understand how it came to be or how it operates. So, let’s briefly look into that.
Essentially, bitcoin is a virtual currency created using a singular ledger (or blockchain) that operates outside the control of any person, company, group, or government. The coin initially could only be ‘mined’ by participants on the blockchain.
These ‘miners’ would use their extensive computing power to process transactions on the blockchain and would be rewarded for their efforts with bitcoin. As time has passed, the coin can now be purchased on many exchanges and is more widely available.
Along with becoming more easily accessible due to the interest in the currency, real value was allocated to the coin. In 2021, this value exceeded $65,000 per coin. This has made the coin incredibly valuable and has spurred many online casinos to accept it.
Bitcoin Accepting Online Casinos
Before we delve into bitcoin casinos, it is essential to distinguish between actual bitcoin casinos and regular online casinos that happen to accept bitcoin as a payment option. The latter of these online gambling websites are more like traditional casinos than anything else.
As such, most of these casinos are fully licensed, have clearly defined owners and operators, and accept a wide range of alternative currencies. These usually include many fiat currencies (such as USD, EUR, and GBP).
Although there is nothing wrong with using these casinos if you’re looking to gamble using bitcoin, there is one important thing worth noting. These casinos traditionally don’t allow gambling in crypto. Instead, they only allow deposits using crypto.
Once your crypto deposit is made, it is converted into fiat currency before being loaded into your player account. The fiat currency is what you gamble with, and your winnings will also be recorded in fiat currency. Sometimes, you won’t be able to convert these winnings back to crypto even when cashing out.
If you want to learn more about bitcoin casinos, read on to see how they operate, what their pros are, and if you should be looking for one the next time you want to gamble.
Unlike conventional online casinos that merely accept bitcoin as a payment option, all the gambling activity on bitcoin casinos operates using crypto. This means that when depositing your bitcoin into your account, it will remain as crypto, and you will play using this crypto. In addition, when withdrawing funds, this can be done in crypto to your chosen wallet.
Aside from allowing play in crypto, several factors have made bitcoin casinos incredibly popular:
One of the most common perks mentioned about bitcoin casinos is their anonymity. Many of these types of casinos allow players to register accounts without providing personal information. This is in stark contrast to traditional online casinos that have strict KYC (know your customer) policies.
These casinos are perfect for players who prefer to keep their gambling private and don’t want to share their personal information. They allow the thrill of gambling while remaining entirely anonymous.
The reason that bitcoin casinos can do this is that they generally tend to be unlicensed and unregulated. And let’s be clear, this doesn’t imply that they lack safety or legitimacy. Quite the contrary, as long as you tread the path of reputable websites, your gaming experience will be safeguarded.
Unlike traditional gambling websites, crypto casinos aren’t legally required to hold a license to offer gambling services in some territories. While these websites may be outright illegal in certain countries, the fact that they can operate independently allows them to provide customers with a level of privacy that traditional casinos cannot.
Aside from keeping players’ personal details out of the limelight, bitcoin casinos offer players incredible security. This is because of the blockchain system that the crypto uses to deposit into player accounts and process withdrawals.
Due to the high security and encrypted nature of bitcoin, any transactions players make can be done in complete confidence knowing their money is safe. This allows more play time and less worrying about whether a deposit could be intercepted by any dodgy agents.
Another benefit garnered from the incredible blockchain technology used by bitcoin is seen in transactions made from or into your player account on a bitcoin casino. All payments and withdrawals are processed at incredible speeds, usually visible in your player or crypto wallet within minutes.
Alongside this speed, crypto transactions usually cost less than traditional fiat currencies. This makes playing using bitcoin generally cheaper than a credit card or other financial provider. However, it must be said that, in some cases, the fees may climb due to blockchain processing availability and then may be the same or slightly higher.
One of the final things that makes bitcoin casinos so popular is their incredible bonuses, offers and promotions to new and existing players. These are usually much more generous than those provided by fiat currency casinos.
The above are just a few reasons that bitcoin casinos attract many players and can operate as effectively as they do. While plenty of gamblers are sceptical of the crypto and still aren’t quite ready to trust crypto casinos, others are taking advantage of the unique pros offered by these gambling sites and reaping the benefits. What’s your stance?