Since its inception in 1994, online gambling has taken the world by storm. With increased internet access across the globe and social distancing due to the recent COVID-19 pandemic, more people than ever before are staying at home to bet big and take the house’s money.
Even though online gambling is cleaning up its reputation and getting a mainstream push, it wasn’t always this way. In line with public perception, many U.S. credit and debit card companies initially viewed online gambling as a seedy venture and prevented customers from using their cards to gamble. People were required to use money orders, wire transfers, and checks to access their hard-earned money and gamble online.
As public perception has gradually shifted, some credit card companies are finally allowing users to use their money in internet casinos. However, it may be too late for these companies to collect on the booming online gambling industry, as a new currency in town is already winning big with betters.
Cryptocurrency — an online digital currency — has taken hold of both old and new gamblers. With 30,000 weekly crypto gamblers, the trend can’t be denied, but some outsiders are wondering, “Why are online casino players even using crypto?”
Although there are various factors at play in the rise of cryptocurrency use in general, there are three main reasons online casino players are betting with digital currencies like Bitcoin and Ethereum.
Cryptocurrency is part of a blockchain system, and that blockchain is a hydra when it comes to security. Because a blockchain is decentralized, open-sourced, and public, there is no single point of failure. The network is distributed through nodes — essentially, multiple computer systems. And like the hydra, when one head or node is attacked and cut off, others take its place.
Digital currencies like Bitcoin are also secured through consensus mechanisms like Proof-of-Stake (POS) and Proof-of-Work (POW), which incentivize individuals called “miners” to validate transactions and prevent fraud. This adds an extra layer of defense and data monitoring to protect cryptocurrency exchanges.
Long story short, the blockchain is nearly impossible to hack. It would take too many resources, and the energy investment would counteract the payout. Although you may hear of Bitcoin or Ethereum hacks on the news, those hacks target digital wallets and not the blockchain itself.
If online gamblers follow best practices to keep their e-wallet safe, they’ll typically be more secure than using their credit cards.
When using cryptocurrency, you own a piece of the blockchain, but your only identifying features are numbers on a digital token, not names. In addition, crypto payments are peer-to-peer and decentralized, so you do not have to use banks or involve the federal government.
This means that gamblers can stay completely anonymous, never disclosing personal details like their legal name or credit card number.
Unlike most credit cards and banks — which charge both users and online casinos transaction fees up to 3.5%, along with other compounding expenses — digital currency isn’t accompanied by online fees. You can exchange your crypto for cash and not pay any kind of cash advance fee as you would for using a credit card.
With the absence of fees, you can access your cryptocurrency almost immediately. Unlike bank transfers, which can take days to weeks to process, cryptocurrency is the quickest way to get your money in your possession.
The Last Word on Cryptocurrency in Gambling
The number of online crypto users is growing daily as gamblers see the effectiveness, ease, and security of cryptocurrency. And because digital currencies have been welcomed by over 300 online casinos worldwide, crypto is positioned to lead the way on online gambling.
The final cherry on the cake? Since betting with cryptocurrency is relatively new, many online casinos like BetDSI offer significant bonuses to start playing with crypto.