The phenomenon of using cryptocoins such as Bitcoin, Litecoin and Dogecoin to settle gambling debts is pretty new. In fact, it is less than six year old. That said, there is already every indication that this is the future of gambling.
There is no going back.
Perhaps it is important to mention at this point that while various sectors of the internet economy, as well as brick and mortar, are adopting Bitcoin and altcoins as modes of payment at a noticeable rate, over 50% of the transactions are online gambling related.
The question is: why is this so?
Bitcoin transactions are fast and cheaper
The answer lies in the nature of the cryptocurrency. The fact that transferring Bitcoins via Bitcoin wallet is almost instantaneous, has little or no transmission charges and affords those who use it anonymity, make it perfect for online gambling.
Furthermore, gambling is illegal in many jurisdictions solely due to its relationship with fiat currency. Using Bitcoin instead keeps many off the hook.
While the fiat system has served well the online gaming industry for many years now, it has inherent weaknesses that make it unattractive in the face of an option of Bitcoin’s kind.
For instance, in order to register for a betting account online and make deposits and withdrawals, you have to send copies of your credit card, a national ID and utility bill documentation to the operator.
Of course, the operator will have to takes some time in verifying the documents and deciding whether your application is valid or not.
Bitcoin gambling comes with anonymity
Apart from the tedious registration process the cost of the system is exorbitant. This is because channel the money has to follow is full of middlemen. And each of these players wants a piece of the cake.
Not to talk of deposits and withdrawal that, in some cases, take up to two weeks to effect.
In addition, during and after the period you are engaged to the operator your data is exposed to third parties who are at liberty to misuse it. For instance, they can charge your credit card, sell your email address, telephone number home address to marketers out there or send you materials that are not welcome to you.
This is over and above being exposed to the tax man, police and other people who you may not want to know about your gambling activities.
Operators too are better off with Bitcoin
And it is not only the gambler who has everything to celebrate about the use of the cryptocurrency in the Bitcoin casino industry. The operators have a lot of good tidings too.
For starters, they enjoy lower costs operation due to being hugely out of the tax man’s scope as well as the absence of remittance charges. These result in better payouts to not only the gamblers but also to themselves.
They also do not have to spend money on the tedious verification process in a bid to meet the KYC requirements. Also, with Bitcoin gambling, there are less fraud cases and chargebacks or reversals.
Indeed, cryptocurrency is the future of gambling.