The path to online cryptocurrency gambling has always been bumpy and uncertain. Although many casinos offer this payment method, some operators and regulators remain skeptical of cryptocurrency gambling. In the UK, for example, several legal online casinos support cryptocurrency payments, despite the green light from the UKGC. So why hasn't cryptocurrency gambling reached its true potential yet? This 5-minute read delves into the mystery.
Why online crypto gambling remains a controversial topic
What are cryptogames?
Virtual gambling money is not an entirely new concept, despite the fact that it provides no payoff other than entertainment. Fortunately, the advent of digital coins in 2009 allowed game developers and online casino players to use payments other than fiat currencies. These days, many regulated online casino sites accept payments in bitcoins, Dogecoins, Lightcoins and other digital currencies.
Here's how cryptocurrency payments work; every transaction is recorded in a digital ledger stored on many computer networks. This public ledger uses blockchain technology, protecting it from manipulation and hacking. Simply put, cryptocurrency payments are decentralized, unlike traditional payments, which are approved by central banks and financial institutions.
Nevertheless, a newcomer to the concept of cryptocurrency may be intimidated by the process of making a deposit and withdrawing money. Surprisingly, cryptocurrency payments are quick and easy. Go to the casino checkout, select a digital coin, then copy the transaction address. You can now use that address to transfer money from your cryptocurrency wallet. The opposite applies to cryptocurrency payouts.
Reasons to play with digital coins
Before we discuss the controversial side of crypto games, it's important to give credit where credit is due. Cryptocurrencies are revolutionizing the way most people view online casino payments. Because it is 100% decentralized, anyone can buy cryptocurrency and gamble with it. These anonymous payments mean that the authorities will not monitor your gambling transactions. Crypto casinos often accept players from jurisdictions where online gambling is illegal.
Another big advantage of cryptopayments is fast and free transactions. This brings you back to decentralization. Because banks and payment service providers such as PayPal, Skrill and Neteller do not approve transactions, payments are instant and free. For example, payments from Visa and MasterCard can take up to five business days because the bank has to approve the transaction. And that's without adding transaction costs, which are usually more than 5% of your profits.
Finally, online casino bonuses are often more on Bitcoin gambling sites. Also, don't score bonuses like the free spins that are presented at https://confusedcasino.com/. Think about it; online casinos can reward new registrations with a 0.10 bitcoin deposit bonus. When you convert the current BTC valuation to dollars, that would be a whopping $2,000 welcome bonus. The truth is that few casinos offer that much to new players. Just be sure to read the terms and conditions of the bonus.
Why are cryptocurrencies a controversial topic?
Many countries have declared BTC and other digital coins legal. For example, countries such as Antigua and Barbuda, Dominica, Grenada and St. Lucia have adopted the Eastern Caribbean Central Bank's DCash. But countries such as China, Bolivia and Algeria have imposed a total ban on bitcoin transactions. This begs the question; Where to play it safe at the best online casinos, you will find the answer on this website.
Losing control of the market
Control of the financial market is crucial to the fiscal ambitions of any government. Authorities can control the flow of fiat currencies such as the euro, the dollar, the pound, the yuan, the yen, etc. They can even introduce new policies to strengthen currencies and track the flow of money in the economy. In turn, this makes it easier to track fraudulent actions and adjust monetary policy where possible.
But with the decentralization of digital coins, governments lose control of the monetary system. Blockchain technology is a public domain that no central authority allows. This means that governments cannot impose monetary policy to manage cryptocurrency payments and values. The best they can do is create their own cryptocurrencies.
Threats to Banking.
Governments control a country's economy and finances through financial institutions. Governments collect revenues to finance their budgets by regulating banks and money flows. In turn, financial institutions can lend to the public and make billions of dollars in profits. Since the introduction of cryptocurrencies, however, central banks and financial institutions have lost some business. This means financial losses for the government.
More cases of cryptocrime
Cybercrime threatens to wreak havoc on the financial sector worldwide. And the anonymity and decentralization of cryptocurrencies can only make things worse. For example, the FBI recently discovered a cyber threat called "Water Labbu," which infects cryptocurrency fraud websites with malware to steal coins from hackers. In October 2022, hackers also stole $100 million worth of cryptocurrencies from a Binance-linked blockchain.
In addition to these security problems, some online casinos do not offer BTC because they cannot verify the source of income. This is a mandatory KYC (Know Your Customer) procedure in most jurisdictions such as the UK, US, Canada, Malta, etc. In general, cybercrime is one of the main obstacles to the growth of the cryptocurrency sector.
Very volatile bitcoin
Bitcoin (BTC) became widely available in 2009 and is by far the most popular digital currency. About 21 million bitcoin coins were available at launch. Today, more than 900 bitcoins are mined every day and there are about 2 million left. Now there is a lot of money coming in with current conversion rates.
Speaking of conversion rates, BTC has high supply and demand, making it the most valuable digital coin. At the time of this post, BTC is worth $20,209.50. Now, with 2 million still to be mined, that's over $40 billion lying around somewhere, waiting to be collected.
Still, that valuation makes BTC a no-go zone if you're still new to bitcoin gambling. In November 2021, Bitcoin's valuation surpassed $65,000 and fell to $46,000 in December. That's a $20,000 drop, which means serious losses for those who bought it in bulk. So, before you join the cryptocurrency industry, keep a close eye on the trading lines.
Choosing the best cryptocurrency wallet is crucial
When buying your first bitcoin , it is important to decide where to store it. A cryptocurrency wallet is a digital repository for storing, buying, selling and managing BTC and altcoins. For this reason, make sure your digital wallet uses modern encryption technology such as PIN, fingerprint or facial recognition. TouchID and FaceID can make accessing your wallet easy and ultra-secure at the same time.
In addition to wallet encryption, make sure the wallet gives you unlimited access to private keys. These are randomly generated phrases between 12 and 24 characters long. Whoever has this key has complete control over the wallet, which only you should do. In addition, no one will want to ask the custodian for permission when they want access to their digital coins.
Backup features are another important security factor. While having private wallet keys is important, managing them is another matter. For most people, the first solution is to write down private keys. But not everyone knows how to save drives. That's why crypto wallet should offer cloud backups to install the wallet app and log in via Apple or Google if you lose your wallet device.
Summary
It is unclear if the online gaming industry will fully support cryptocurrency payments. And the current bitcoin situation doesn't help.
But the good news is that regulators such as the UKGC and MGA are being progressive on this issue. Most regulators don't discriminate against cryptocasinos when issuing licenses.
So, do you want an opinion from OnlineCasinoRank? Here; crypto gaming is safe and secure when you use trustworthy coins such as bitcoin, litecoin, tether and dochecoin. And yes, an online casino must have a legitimate and reliable license.