Provably Fair Bitcoin Casinos: Pros and Cons of Using Cryptocurrency in iGaming

Introduction

The emergence of blockchain and cryptocurrency has revolutionized a wide array of industries, from healthcare, retail, real estate and finance to iGaming. And it's probably safe to say that both technological advancements are here to stay due to the significant advantages over traditional processes. A great example is the rise of provably fair casinos. These online platforms use blockchain technology to ensure transparent and fair gaming, with cryptocurrencies now an essential part of this new and exciting time in inline gambling. Using digital currencies such as Bitcoin in iGaming has numerous advantages, but it also comes with unique challenges. It's a good idea to be aware of the pros and cons.

Biggest Difference Between Traditional Online Casinos & Provably Fair Cryptocurrency Casinos

One of the biggest advantages, if not the biggest, of gambling at provably fair casinos versus traditional online casinos that use fiat currencies is the flow of money from player to casino and, if they're lucky, back to the player. Governments have no authority over a person's crypto wallet because of the unregulated nature (depending on location and circumstances) of cryptocurrencies. That also means no automatic taxes, financial sanctions, fees, spending limits, etc. More importantly, blockchain networks, shared database technology that records and verifies cryptocurrency trades, cannot be cancelled, blocked or modified by banks and governments.

On the flip side, traditional finance can control government issued fiat currency and how you use it. A bank, credit card company, the payment processor or even some random third party intermediary can choose to refuse a transaction. In other words. getting fiat money/your money into your online casino account can often be a crapshoot.

More Pros of Using Cryptocurrency in iGaming

Players can expect a greater degree of privacy and anonymity when using cryptocurrencies like Bitcoin in iGaming. Enhanced privacy is one of the most significant advantages digital currency provides. Unlike traditional online casinos, where players are often required to provide personal information, including names, addresses, and banking details, cryptocurrency transactions can be conducted with a high degree of anonymity, because disclosing personal data is not required. It's plain to see why this alone is a major attraction to players who wish to keep their gambling activities discreet and to whom privacy is a priority.

Transactions using cryptocurrency are also typically faster than traditional payment methods, such as credit card payments or bank transfers. The reason for this is because digital currencies operate on decentralized networks, which means the need for intermediaries, such as banks, is eliminated. That means a player's deposits and withdrawals in cryptocurrency can be processed almost immediately. This is also attractive to players as they are able to access their funds more quickly. Afterall, payment delays can turn a good gaming experience into a bad one.

Another benefit of using digital currency in iGaming is the potential for lower transaction fees. Players are often faced with significant fees for processing deposits and withdrawals when using traditional payment methods, particularly when it's an international transaction. Because there is no need for intermediaries, there are typically lower fees when using cryptocurrencies. What player isn't going to be pleased with saving some money?

Accessibility and global reach ranks high on the list of pros. As long as you have an internet connection, anyone anywhere can use cryptocurrencies, regardless of their location. This makes it easier for players from different countries to enjoy iGaming without stressing over currency conversion or payment restrictions. This global access also benefits iGaming operators, as it allows them to broaden their reach and gain customers in regions where traditional payment methods may either be limited or unavailable.

Before we get into some of the cons of using cryptocurrency in iGaming, we need to mention security. Blockchain technology, as explained earlier is the underlying infrastructure of most cryptocurrencies, and offers a higher level of security. And while not completely immune to to cyber-attacks and scams, because transactions are recorded on a decentralized ledger, it is extremely difficult for hackers to manipulate transaction records or steal funds. Knowing that there is this enhanced level of security protecting their funds provides players with peace of mind when gambling online.

Cons of Using Cryptocurrency in iGaming

One of the major drawbacks of using cryptocurrency in iGaming is price volatility. Digital currencies can fluctuate in value, quickly, going from high to low. It's comparable to buying stock, where the investment worth thousands today could be worth hundreds the next, or even sooner, depending on the market. Bitcoin and Ethereum are two cryptocurrencies that are known to be highly volatile and subject to unpredictable price fluctuations.

An example of the extreme nature of the cryptocurrency market, in March 2023, Bitcoin's value went from $20,195 to $46,936 in January 2024. That's an increase of $26,741 in three months. It's easy to see how that same volatility can be a double-edged sword for players, however, possibly resulting in significant gains or substantial losses. When the worth of your resources is not static, managing a bankroll can be a challenge.

Some other cons of using cryptocurrency in iGaming include regulatory uncertainty, limited adoption and acceptance, technical challenges, and potential for fraud and scams.

One thing that's certain is the use of digital currencies in iGaming and provably fair casinos presents a wide range of benefits and challenges. Players considering using cryptocurrency at gambling platforms should weigh these and other pros and cons carefully, so as not to overlook significant concerns, such as price volatility or regulatory uncertainty. It's important to understand the risks involved and to choose only reputable platforms to ensure a safe and enjoyable gaming experience.

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Posted by kmorr906