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Bitcoin at $1 Billion Lights Way for Casinos

a bitcoin propped up with “B” logo engraved in blackSource: Getty Images

Bitcoin recently reached its $1 billion milestone in cumulative transaction fees. This goalpost fell on the eleventh anniversary of the breakthrough cryptocurrency. Since it was officially launched in 2009 by Satoshi Nakamotoa, more than 200,000 Bitcoin have now been paid in transaction fees. Online casinos have also leveraged the benefits of Bitcoin for many years. Bitcoin gambling has gained momentum since 2012 and shows no signs of stopping. Read more from All Slots on how Bitcoin is revolutionizing the online casino industry and why cryptocurrency benefits both casinos and gamblers.

Casinos Quickly Pick Up Cryptocurrency

If you are not familiar with Bitcoin, all you need to know is that it was the world’s first form of cryptocurrency. Cryptocurrency is a digitalized payment form that can be used online in exchange for various goods and services. You might think of them as digital tokens or casino chips that you can trade in for what you want to purchase. Using a technology called blockchain, cryptocurrency is an exceptional form of secure payment where value is transferred from one node to the next, one at a time.

With the fact that cryptocurrency is basically a highly secure casino chip, you can see why it was so natural for online gambling to pick up this new technology.  Online casinos first established in 1996 and were generating $2.2 billion when the early 2000s came around. By 2008, online gambling was making $21 billion. By 2013, the industry was raking in $10 billion alone on mobile devices.  Cryptocurrency experienced a similar arc in development, established in 2009 and gaining momentum, in spite of vacillations in market value.

Always quick to adapt to the evolution of technology, online casinos have picked up cryptocurrency because the industry sees the advantages. Online casinos were quick to intuit the necessity of building live-table features to match increasing internet connection speeds and implemented mobile-friendly games when smartphones hit the market in 2007.

Adapting cryptocurrency in 2012 proved yet again that online casinos have their fingers on the pulse of a society that craves the next best thing in technology.

chips and dice with a keyboard, representative of online gambling Source: BM Magazine

Why Cryptocurrency Is Made for Online Gambling

Why choose any cryptocurrency like Bitcoin, Ethereum, and Ripple over US dollars, euros, Japanese yen, and other currency? These five main advantages may convince you to never spend money from a bank at an online casino again.

  1. Bitcoin Provides Unparalleled Security – With blockchain technology, transactions are completely anonymous and secure. They are not controlled by banks or third parties. All you do is use Bitcoin that you have either purchased or mined (adding transaction records to Bitcoin’s ledger) to transfer value to the online casino’s Bitcoin address. This way you can play for “real money” without any other identifying information beyond your own Bitcoin address.

By eliminating the need to provide sensitive information by way of Bitcoin, you can prevent identity theft, privacy invasion, and attacks from hackers. All Bitcoin casinos require is that you deposit funds from your Bitcoin wallet – period. No name, address, VPN, or anything tracing back to you.

  1. High-Speed Transactions – Beyond privacy is speed. With traditional fiat transactions, it may take days to see money withdrawn and deposited. This affects both players and the online casinos. Players want to get their winnings quickly and casinos want to know they are receiving prompt, genuine payments from players. Blockchain drastically reduces delays, firing off almost instantaneous transactions and fixing the problem on both sides.
  2. No Bank Transaction Fees – With banks and other financial institutions you also face the problem of transaction fees. Some depend on high percentages to syphon money and out of your account. These fees add up, costing players unnecessary money. Plus, players can profit in a way from cryptocurrency casinos. When they choose to use Bitcoin or another form of the digital payment, these casinos offer more generous bonuses to players, balancing out the losses they would also face with higher transaction costs.
  3. Universal Playing Power – Bitcoin and other cryptocurrencies are great social and financial equalizers. Because Bitcoin and its kin are not tied to any particular country, currency form, or financial institution, anyone can play using it in any country. You do not have to worry about frustrating exchange rates getting in the way. Cryptocurrency also may increase rapidly in value quickly (or decrease at times), possibly adding to your overall wealth when you use these digital tokens for gambling.
  4. The Novelty – People like fads and cryptocurrency is a fad, even if it’s here to stay. By extension, the idea of using digital casino chips from anywhere is the world is a thrill and the idea is rapidly increasing in popularity. With Bitcoin providing a streamlined, private option for both players and casinos, cryptocurrency gambling may become the new frontier.