Published On: Mon, Dec 10th, 2018

Is Bitcoin taking over online gaming?

By Contributing Author

Bitcoin became a storm on the internet in 2017 due to its bullish price for the better part of the year. From an opening price of around $950 in January to its closing price in December of around $14,000, bitcoin had every right to be at the center stage of discussion in many news outlets and online forums. Many factors were attributed to its rising price one of them being mass adoption in various sectors. Of interest in this article is the use of bitcoin in the online gaming sector.  You will be astonished at the number of casinos that accept bitcoin. Some of the reasons why Bitcoin has become a darling to many players is because of benefits such as anonymity, security and much more. Let’s examine why bitcoin is preferred for online gambling.

Why bitcoin is preferred for online gaming

Most of the bitcoin advantages stem from blockchain, its core software. The software design of bitcoin blockchain gives it an upper hand when used in online gaming. The following are some of the reasons why bitcoin has found a way in online gaming:

Optimised for online gaming

Bitcoin is a digital currency that exists on the internet. Compared to bank transfers and cheque, you would right to conclude that bitcoin fits well for use online payment settlements rather than payment methods such as a cheque.

Provably fair games

Transparency is one of the key considerations that players keep in mind before signing up with a casino. While its common to be duped by marketing ploys from land-based casinos and online casinos about some past big win, with a provably fair online casino, it is impossible. Bitcoin provides a trace of a transaction, with a history that can be deleted or copied by another casino. Therefore, players can’t fall victim of shoddy dealing or unfair a settlement of bets because players can confirm the fairness of the games. The provably fair concept has become a hit on the internet as bitcoin become famous courtesy of the bitcoin blockchain immutability property. With legacy online casinos, it was hard to prove for fairness because the random number generators could be tampered with. With new developments such as Ethereum programmable platform, it even makes casino games hosted on Ethereum blockchain.

Accessibility

Bitcoin is a digital currency that isn’t regulated by any central authority. Therefore, it is not an official legal currency under any jurisdiction. What that implies is that whoever owns bitcoin regardless of the country he/she is can use bitcoin to transact. That loophole has been used by players who live in countries that restrict playing casino games access to the gambling market. Pure bitcoin sites require only email address and password from players during account registration process. There isn’t any personal information required. Bitcoin is, therefore, a leeway for players looking to play casino games even when residing in countries that restrict betting.

Low cost for the house

It is a fact that running a bitcoin-only gambling site is cheaper compared to running the traditional online casino. The costs are lowered when it comes to licensing fees, regulatory fees, audit fees, and transaction processing costs. Casinos have taken advantage of bitcoin by introducing lots of bitcoin games and using it as a payment option is an effort to reduce its overheads. What’s more interesting to the house is the swift of their operations since there no authority scrutinizes their books.

Taxation

Some countries deduct taxes from players winning while some don’t. With bitcoin, this is not possible since no government knows what its citizens hold in terms of bitcoin. The trickle-down effect is that governments are not able to collect revenue from any winnings realized from gambling using bitcoin. High rollers may opt for bitcoin in an effort to evade the taxation that their winnings may be subjected to and any scrutiny of their transaction from government authorities.

Conclusion

Bitcoin is a currency that is challenging the traditional gambling industry. With its innovative features and robust software, it is becoming an attraction to many players and casinos at the same time. Successful online gaming companies are considering adopting bitcoin instead of fiat money and the effect has quite been felt because game providers are producing a lot of bitcoin casino games. Players at the same time are after the benefits that come with wagering using bitcoin such as fast transaction speeds, anonymity and security.

In as much as bitcoin might seem to be taking over the online gaming industry, several issues that remain unattended to. Bitcoin is susceptible to minor betting especially for pure bitcoin casinos that don’t conduct KYC procedures. Another area of concern is with control of betting addiction. Pure bitcoin casinos don’t put in place gambling addition measures, and it’s up to the players to regulate how they play.

 

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