The past decade has seen a surge in the popularity of cryptocurrencies, with Bitcoin emerging as the most popular cryptocurrency. Various businesses in the online space, including e-commerce and online casinos, are now allowing their customers and clients to transact with Bitcoin.
Some of the best Bitcoin gambling sites offer numerous advantages over traditional gambling, including added privacy and faster transactions. But, like with most things, using Bitcoin for online gambling presents a few limitations.
This article will take an in-depth look at both sides of the coin ‘pun intended’ to give you a comprehensive understanding of the benefits and limitations of gambling with Bitcoin.
71% of adults worldwide have taken measures to improve their online privacy. While these efforts are mainly centred around using VPNs and privacy settings on their devices, some have gone a step further to secure their transactions by using cryptocurrencies like Bitcoin to make transactions.
Traditional fiat currency transactions have one major flaw – they require you to share much personal information. Whenever you make a transaction, various institutions, from your credit card company to third-party payment processors and gambling sites, have access to your data.
Bitcoin, on the other hand, provides an unprecedented level of anonymity. While you may have to provide some information when buying Bitcoin with your credit card, every other transaction you make with Bitcoin, including depositing and withdrawing funds from an online casino, remains anonymous.
Lower Transaction Costs
Fiat currency transactions often pass through several institutions before they get to your online casino. And, since everyone wants a cut, this often results in higher transaction costs. On the other hand, cryptocurrency transactions work through the blockchain, facilitating transactions directly from your crypto wallet to your online casino.
This results in much lower transaction costs for you and the online casino. Online crypto casinos often pass on the savings to their clients through bonuses and other incentives.
Security and Fraud Prevention
Cryptocurrency transactions, including Bitcoin transactions, are highly secure due to the decentralized nature of blockchain technology. As long as you keep your crypto wallet keys private, there’s no way anyone can access your funds.
Online casinos also benefit from the reduced risk of chargebacks, fraud, and other payment-related issues, thus giving you and the online casino peace of mind.
The value of cryptocurrencies is subject to significant fluctuations. While the increased volatility may lead to increased profits in case of a market upturn, it could also work against you. For instance, if you buy Bitcoins at a higher value and then withdraw your winnings at a lower value, you may make a financial loss.
Steep Learning Curve
You need to be at least moderately tech-savvy to use Bitcoin effectively. Unlike traditional fiat currencies, crypto is a bit more complex and may require some learning before you understand how it works.
The regulatory uncertainty around crypto is alarming, to say the least. Different countries enact new regulations every other day, making it difficult to keep track of crypto progress. Actually, some countries have even banned it altogether. Failure to adhere to set regulations may leave both you and the online casino liable to legal action.
Despite its popularity and widespread adoption in online gambling, Bitcoin has a few drawbacks. However, aside from the legal aspect, choosing to use Bitcoin for online gambling ultimately depends on your preferences, especially where your privacy and financial security are concerned.