Casinos are welcoming the use of cryptocurrencies in the gambling sector with open arms. Many of these casinos allow players to make both deposits and withdrawals, usually without charging any fees to do so. Casinos allow players to make these payments directly from their cryptocurrency wallets. Other times they need to use a service like Neteller or Skrill, both of which let users exchange their regular currency for cryptocurrency. And when players later withdraw their winnings, they can choose to keep them as digital cryptocurrencies or covert them into traditional fiat currency.
For some, the biggest perceived risk in online gambling has always been the security of their financial information. No one wants to provide a casino with his or her bank account information and then have that information compromised. This is the reason that cryptocurrencies are changing the face of online gambling. Though they are still in their infancy, these digital currencies are set to eventually become the primary form of payment for gamblers all over the world.
How cryptocurrencies ensure provably fair games
All online casinos have security measures in place so that players can trust games will be provably fair. But thanks to the use of cryptocurrencies, players can now have more trust in online gambling than they ever have before. While RNGs are used at most online casinos, cryptocurrency casinos use ledgers, along with smart contracts, to make games even more secure.
Through the smart contacts the blockchain accesses the ledger that is impenetrable. When digital transactions are completed there is no footprint that exposes the transaction to possible hackers. As a result, there is virtually no chance of being able to break into the system and fix the game in a player’s favor. This also means that the odds slightly rise in favor of a player winning money from their game of choice. And while this applies to slot machine games, it also applies to Poker games as well.
By ensuring that games are completely safe, casinos that accept cryptocurrencies are able to provide players with a much higher quality experiencing than their non cryptocurrency counterparts.
When it comes to sportsbooks, the same thing holds true. The security provided by blockchains gives bettors, better odds of making correct predictions concerning the outcome of sporting events.
The most commonly used cryptocurrencies in gambling
There are many choices in digital cryptocurrencies, that anyone can purchase. The most commonly used at online casinos are Bitcoin and Litecoin. Though BTC was the first to be released, LTC followed in its footsteps only two years later.
2009 was the year that Bitcoins were first introduced to the public. The entire reason for this is so that people could use an unconventional payment system that governments can’t track and control. Because of this, payments can be made to online casinos anonymously, which never would have been possible with traditional fiat currency.
But Bitcoins were just the start of this. In some ways, they have lost their steam. Newer digital cryptocurrencies have since been created that are even safer and more anonymous than Bitcoin. In response, Bitcoin Cash was created. Currently, it isn’t worth nearly as much as the original form of Bitcoin, but BCH is created in a significantly larger blockchain. This means it is more readily available than Bitcoin, and easier to control. Because of the differences between the two, Bitcoin and Bitcoin Cash are not interchangeable. Because the Bitcoin Cash community of users grew rapidly, users wanted a bigger blockchain. This led to the creation of Bitcoin SV.
When it came to Litecoin, this is a digital currency that was released to serve as an upgraded version of Bitcoin. Though the same code was used to create both cryptocurrencies, improvements were made in the process of building LTC. One of those improvements was that Litecoins cost less to purchase than BTC does.
Every form of cryptocurrency is exchanged on its own network. With the release of each new crypto currency, its network will likely be improved upon. This is why Litecoin is quickly gaining traction over Bitcoin, and the reason the cryptocurrency industry is set to become highly competitive.
Though these are the two most widely used, a close third is Dogecoin. Referred to as an altcoin, at less than a minute, Dogecoin transactions are processed even faster than Litecoin transactions. And while Bitcoin and Litecoin have circulation limits, Dogecoin never stops circulating.
But online casino players aren’t just limited to these digital currencies. Another that is gaining traction in the industry is Ethereum. Made available to the public in 2014, it was also designed to compete with Bitcoin. Ethereum is now used by online Bingo halls, casinos, poker sites, and sportsbooks.
Some cryptocurrencies are tied to a specific online casino or sportsbook. One example of this is Dash, which is the digital currency that members of FanDuel can use.
Litecoin Vs Bitcoin
In the battle of Litecoin vs Bitcoin, Litecoin appears to be winning. Its biggest selling point with gamblers is that the value of Litecoin is more stable than the value of Bitcoin.
Many online casino players also prefer Litecoin because transactions are processed at a faster rate than Bitcoin. This is a huge advantage when it comes to both deposits and withdrawals. Litecoin users don’t need to confirm their financial information before making a deposit. As a result, deposits are processed almost immediately, as are withdrawals. In contrast, Bitcoin includes unnecessary operations that Litecoin doesn’t require, which is by deposits and withdrawals take longer.
All cryptocurrencies are produced in blocks. A single Litecoin block results in as many as 84 million units of currency. In comparison, a single Bitcoin block can only produce a maximum of 21 million units of currency. The increase in availability is one reason why Litecoin is now more popular than Bitcoin is.
However, Bitcoin currently has one huge advantage over Litecoin or any other digital currency. It has become so popular that entire online casinos have been built entirely on the premise that digital currency is the only acceptable currency. As a result, these online casinos don’t require players to verify their account before making a deposit.
Another advantage Bitcoin users enjoy is its ability to be divided into several small amounts of money. This is perfect for gamblers that engage in low stakes poker, or play other games but only want to make small bets on them.
It should be noted that the use of any type of digital currency requires players to create a cryptowallet account. These accounts can be created without players having to present their photo ID.
Why Online Casinos Prefer Cryptocurrency
Gamblers aren’t the only ones that benefit from cryptocurrency. There are also benefits for the online casinos that accept them as payments. At this point, many of the world’s countries feel that cryptocurrencies simply aren’t valid.
This works in the favor of the online casinos that only accept cryptocurrencies for deposits. If the country they are based in dismisses cryptocurrency, technically their players aren’t gambling with real money. As a result, these casinos don’t have to comply with the regulations that non cryptocurrency casinos do.
At the same time, this also benefits the players that frequent these casinos. It means that as far as the government is concerned, they aren’t placing real money bets. However, when they withdraw their winnings to their bank account, players can convert those digital dollars into traditional dollars. Since these winnings aren’t regulate by the government, players don’t have to worry about paying taxes on them.
Crypto-Based Online Casino Gaming Platforms
Thanks to the rise of cryptocurrencies, online casino gaming platforms will never be the same again. In fact, many have been built based entirely on the use of cryptocurrencies. This includes the FunFair Network, a platform built to encourage the use of Ethereum. The network produces games that online casinos can use in their collections.
FunFair is essentially a blockchain platform where online casino operators can thrive. Its launching in 2017 revolutionized the ability of online casinos to accept cryptocurrency payments from players.
But this isn’t the only way that Ethereum is changing the industry. A joint effort between DeCentral Games and Atari resulted in the design of the Atari Casino. Scheduled for a May 2021 launch, this casino will put a new spin on all the old Atari games, which have been revamped for the online gambling industry.
Everyone knows that casinos feature games that are mostly based on luck, as opposed to skill. But the Atari Casino will offer some games that are skill based, some that are luck based, and some that are a combination of both.
Within its first year in operation, it has been predicted that the Atari Casino will take in $150 million from players’ bets. The prediction for its second year in operation is in excess of $400 million.
Cryptocurrency And Online Sports Betting
Cryptocurrency, especially Bitcoin, is good for more than just playing at online casinos. Its also changing how online and mobile sports betting sites operate. Digital currency is especially ideal for mobile players, because making deposits and requesting withdrawals on their devices is much easier to do.
It is not unusual for mobile sportsbooks to be located in gambling markets that aren’t regulated. As a result, almost all of then accept and encourage Bitcoin payments. Most of these sportsbooks charge the smallest fee possible for doing so.
But one of the biggest perks of using currency like Bitcoins is that some sportsbooks will offer players extra rewards and special bonuses. This sometimes includes exclusive deposit bonuses and matches.
One example of an online sportsbook rewarding Bitcoin players is MyBookie. Currently, new players can get a 100% match for their first three deposits made with Bitcoins. They also get a much higher deposit limit than players who use traditional currency. But players who make deposits using a credit card will get back a 5% fee in the form of crypto rewards.
Another example is Bovada, which offers online casino games and a sportsbook. Currently, new members can get a deposit match bonus of up to 75% the amount they deposit using Bitcoins, up to a maximum of $750.
It isn’t just the online casinos and sportsbooks that give bonuses to Bitcoin users. Many crypto exchanges do the same. All digital currency users have to purchase the currency on exchanges, but not all exchanges are created equal.
In the case of Bitcoin, new users that join the exchange may get a bonus similar to the one’s online casinos give to new players. Some even take it a step further and offer a loyalty program. Customers that keep buying their Bitcoins from the same exchange may receive special bonuses.
ZenSports And Cryptocurrencies
Not all mobile sports betting apps are created equal. One that is built almost entirely on cryptocurrencies is ZenSports. And while users can deposit traditional currency, the app took things a step further by using a unique cryptocurrency utility token. Simply referred to as SPORTS, the token is used by players for not only placing their bets, but paying fees on them too.
One of the benefits of using SPORTS tokens is that players can get them for less than the normal betting fee. They can also use them to earn various bonuses through the app, as well as to take advantage of cashback offers.
Players can open an ICONex online wallet in order to deposit and withdraw SPORTS tokens. The tokens are created within the ICON blockchain, which was rebranded as ICON 2.0 in 2020.
Cryptocurrencies And Online Lotteries
Cryptocurrencies haven’t just affected online casinos and sportsbooks. They have also breathed new life into the idea of online lotteries. The largest one in the world is currently Crypto Millions Lotto. As of March of 2021, there are a total of six digital lottery games. For gamblers who don’t want to be confined to state lotteries, this is their dream come true.
There are many reasons why people love online lottery games, but by far the biggest reason is that these lotteries are completely transparent. It’s worth noting that every one of these six lottery games require gamblers to make their bets with Bitcoins. Currently, gamblers can take advantage of the opportunity to earn more Bitcoins by recommending these digital lotteries to their friends. As soon as the friends they refer purchase at least one lottery ticket, the Bitcoins are awarded. Those who refer their friends get a small percentage of their winnings.
Cryptocurrency Gambling Statistics
In the few short years that cryptocurrencies have been available to the public, they’ve made a significant impact on the gambling industry. As of this writing, the total market cap is over $500 million in cryptocurrencies spent on gambling. Only a weekly basis, the number of players using digital currencies in online casinos exceeds 30,000.
90% of all online gamblers use Bitcoins as their cryptocurrency of choice. The last 10% of online gamblers prefer either Ethereum or Litecoin. Because a growing number of gamblers are turning to digital currencies, more and more non gamblers are realizing the full potential that these currencies have.
One of the biggest forces in cryptocurrency and online gambling is the SoftSwiss Game Aggregator. In conjunction with 70+ online casino studios around the world, 3,000 of its 10,000 games accept cryptocurrencies as payments.
Why Cryptocurrency Is Changing Online Gambling
Primarily, younger people make up the biggest demographic of online gamblers. Many of these players grew up surrounded by technology, and they are always looking for different ways to use it. For this reason, cryptocurrency has caught the eyes of this generation of players.
In a world where instant gratification has become the norm, players don’t have the patience to use traditional currencies to fund their gambling activities. They don’t want the hassle of having to verify their identity, bank account, etc. For many, this is the main appeal of using cryptocurrencies like Bitcoin for gambling.
These digital currencies seem to be the ideal way for gamblers to jump right into their favorite games. They know they’ll be playing within minutes of making a deposit. And they know when it comes time to make a withdrawal, the money will be in their bank account in the blink of an eye.
Online casinos and sportsbetting sites have caught onto this and are using it to their advantage. The number of online casinos/sportsbetting sites that are being created specifically for cryptocurrency users grows all the time. As more people begin to embrace cryptocurrency, the online gambling industry will only continue to grow.