What Is Bitcoin, and how is it relevant to online gambling?
Bitcoin is an anonymous cryptocurrency. It has gained a lot of attention lately in the media and in the financial sector. It is estimated that 6% of Americans have some quantity of Bitcoin, while 20% know about it. Formerly just a thing for nerds and geeks, Bitcoin is now a mainstream currency with a focus on privacy.
How Bitcoin Works
Getting set up for casino gambling online with Bitcoin (or Ethereum, XRP, Litecoin and many more) is pretty straightforward:
Buying Bitcoin – You can buy Bitcoin(BTC) at whatever the current market rate is with FIAT money (traditional government-backed cash), just like you can buy Euros with Dollars, at a specific rate (the current USD to EUR exchange rate). Generally people will buy Cryptocurrency at an exchange like Bitfinex.com or Coinbase.com
Storing your Bitcoin – Your new currency will be stored on a cryptocurrency wallet service, or on a dedicated hardware wallet such as the Ledger Nano.
Depositing on a casino with Bitcoin – Once you have it, you can send your Bitcoin anywhere in the world securely and anonymously in seconds. An Online Casino will give you an address to send the money to, and once initiated, the transaction will be complete in minutes.
If you are not sure how to get started with buying bitcoin and setting up a bitcoin wallet to make a deposit on a casino site, don’t worry.
Online casinos generally offer easy-to-follow illustrated or video guide to guide you from buying to depositing with Bitcoin on your chosen casino site. Simply choose a reputable casino which accepts Bitcoin (be sure to check out our top ten list of Bitcoin casinos), and once you have created your player account – navigate to the cashier section and follow the on-screen instructions to get started in minutes.
Why do people bet / gamble online with cryptocurrencies?
People have gambled in one way or another since the dawn of time, and will continue to do so. Gambling Prohibition is in effect in many countries and states – but it does not seem to work – as evidenced by the proliferation of offshore online sportsbooks and casinos, taking billions of dollars each year in wagers.
It is however possible to gamble/wager/bet in many different ways online, whether your fancy is sportsbetting, slots, blackjack, Table Games, Dice games, poker, video slots or even jackpot games – there is undoubtedly a bitcoin gambling site online which will take your action.
Top reasons to use Bitcoin to gamble online
Provably Fair Gaming Technology – Ever thought that a casino was doing something dodgy to screw you? Did you think the games were rigged, or that the house edge was too big? “Provably Fair gaming” is a new technology specific to crypto-based Bitcoin casinos which makes it impossible for a player or casino to cheat. Anything suspicious can be checked and validated using cryptographic tools to ensure that results are indeed calculated properly and fairly. This type of provability does not exist in the world of brick and mortar casinos or traditional non-cryptocurrency based online casinos, making Bitcoin casinos a smart choice for the savvy gambler.
Avoid taxes on gambling – Government taxes on gambling vary by country and region. With Bitcoin, the taxman cannot tax what the taxman cannot see.
Pay Less “Juice” – In some cases, gamblers can pay less vigorish (‘Vig’, also known as juice or house edge) – the fee charged by a casino or bookmaker (or bookie) for accepting a gambler’s wager. Some Casinos even offer roulette games with reduced house-edge – increasing the player’s chance of winning significantly.
Avoid KYC Checks – KYC “Know your customer” is a process by which banks or other financial institutions are required to obtain information about the identity and address of the customers. This information may include identification papers, proof of address, proof of bank account etc. Many gamblers wish to avoid giving personal details to casino companies, while others simply do not have the required documentation. With Bitcoin online casinos, generally no KYC checks are made / required – enabling truly anonymous gambling.
Vast Game Type Selection – Players at Bitcoin/crypto based casinos can often enjoy as wider game selection to gamble on than can be found in traditional online casinos. As well as regular slots, blackjack, poker etc, expect to be able to gamble on skill, strategy and luck games like minesweeper, paper rock scissors and more at these sites
Avoid bank fees and transaction fees– Many online betting and casinos levy hefty fees on customers when depositing via check or bank wire – and many do not accept credit or debit cards like Amex or Visa. Using cryptocurrency like Bitcoin reduces transaction fees to almost nothing – a great way to side-step bank charges, and e-wallet charges, and perfect for when you cannot deposit with credit-card.
No Deposit Restrictions – Deposit big or deposit small . Bitcoin online casinos are more flexible in terms of deposit sizes, (as they are generally not regulated). Many will not bat an eye of you choose to deposit $10,000 in 1 day. What you do with your money is your business, after all.
Fast Transactions – With cryptocurrency You can deposit to, or withdraw funds from your chosen cryptocurrency casino in seconds or minutes, not hours, days or weeks!
Some casinos accept only Bitcoin – Embracing the cutting edge, and cutting out payment processors and banks – some casino brands have decided to focus 100% on the crypto-gambling market. Examples include Slots.com.
With so many benefits for the player, choosing Bitcoin as a payment method for gambling is a “no-brainer”.
An iGaming industry veteran with a background in Poker, David covers the latest news from the world of poker, sports, casino, and interesting gaming industry news.