New trends in crypto-payments are changing the online gambling industry, allowing players to deposit, play with, and cash out winnings using digital currencies. In this article, we look at how bitcoin casinos and iGaming sites can benefit from these new payment methods.
Cryptocurrencies found their start in Bitcoin in 2009 and offered a new method of payment outside of government-issued currencies. This new payment method would allow people to send money anywhere in the world with lower transaction fees.
Bitcoin became wildly popular following 2012 and soon skyrocketed in 2017 to be valued at around $20,000 USD for 1 Bitcoin. Around this same time, many other cryptocurrencies started to appear and a few like Litecoin and Ethereum have grown in popularity. In December of 2017 when Bitcoin was around $20,000, it famously crashed in value. However, Bitcoin operates much like the stock market and steadily grew in value once again. As of January 2021, it’s at the highest yet at $33,000 per Bitcoin.
Bitcoin and other cryptocurrencies as currencies have been growing in popularity in recent years. Many online retailers such as Microsoft, Overstock, and even some brick and mortar stores like Starbucks and Home Depot are accepting bitcoin and other cryptocurrency payments.
Cryptocurrencies offer a great payment method for online gambling and iGaming in the following ways:
Every transaction of Bitcoin and other cryptocurrencies is sent through encrypted systems which ensure protection for both the client and site owner. These end-to-end transactions are made from the user’s private crypto-wallets directly to the owner’s wallets through end-to-end transactions. This direct payment method cuts out any connecting point like Paypal which can be hacked or infiltrated. With fewer links in the chain, the stronger the payment connection.
Privacy is one of the biggest reasons why people choose to gamble online, and cryptocurrencies require no personal details to be shared in the transaction. This can be great for the consumer as they feel like their identity won’t be publicly shared and they are protected from other intrusions that someone might use from their payment method. While this might be an issue for legal measures, online casinos already require personal details to ensure legality for their services. If the payment method is entirely private and secured, the online casino then just has to verify their player’s details and ensure security on that information to keep everything perfectly private.
Cryptocurrencies do not require a traditional middle man, like Paypal or a banking institution, to handle transactions. The value of the cryptocurrency is evaluated through online servers and transactions are dealt from the client’s wallet to the casino owner’s wallet through a gateway that ensures everything is taken care of.
Customers and clients can also feel the ease that their payments will immediately go through to the casino. As cryptocurrencies are based in the digital realm and servers are updated constantly, any transaction can occur nearly immediately without waiting for a third party to ensure funds by waiting before processing the transaction.
Cryptocurrency gateways are how currencies are transferred, and they charge a small flat percentage of the exchange, sometimes as low as 0.5%. This is a massive saving for both the user and casino owner versus more traditional transaction methods which often call for 5%, 10%, or more in transaction fees.
Despite the famous crash of Bitcoin, Bitcoin and other cryptocurrencies have been growing in popularity and thus their value has been increasing. The value of cryptocurrencies can fluctuate due to investment in the stock market and many people have seen the value of their cryptocurrencies rise much like held stocks.
This allows for users and clients to feel empowered to spend their cryptocurrencies when they are at an all-time high value, and casino owners can hold cryptocurrencies they are paid for the cryptocurrency’s value to rise in time.
Bitcoin and other cryptocurrencies can be transferred easily and relatively painlessly for both client and casino owner. However, it’s notable to say that cryptocurrencies aren’t some black-market money; when someone wants to exchange their bitcoin for traditional fiat currency, there are established exchange facilities like Coinbase that facilitate the transaction. These facilities help regulate pay-out and uphold legal standards in the countries where they are based to avoid complications.
Bitcoin and other cryptocurrencies are starting to grow in popularity as our lives are becoming more ingrained with online sales and content. While traditional fiat currencies will not fade away soon, cryptocurrencies are a sure bet for online gaming and iGaming transactions due to the privacy, safety, and growing trust in these digital currencies.