In 2021, it's clear that digital currency is not a trend. Ten years ago, critics didn't give much hope to cryptocurrency use. The prediction was that adaption would be challenging, and coins wouldn't have a lot of value. A majority of currencies are going against those criticisms. The world has seen Bitcoin, the most popular crypto by market share, surge to over $60,000 in worth. Other coins like Dogecoin, Litecoin and Ethereum have also had positive performances. Cryptocurrencies have been a game-changer in various sectors, online gambling being one.
For several years now, online casinos have been accepting digital coins as payment methods. At first, players were wary about gaming with crypto, but they are growing more confident by the day. The increasing number of cryptocurrency casinos is proof of that. For this reason, it has become necessary to evaluate the state of crypto gambling and where it's headed. Should players consider virtual currencies as viable banking solutions that will be available for the long term? Learning the role that blockchain payments play in the gambling industry enables operators and players to take advantage.
The Blockchain and Online Gaming
Despite crypto being around for over a decade, its functioning might not be clear to everyone. Digital currencies exist on the blockchain network, a distributed, immutable peer-to-peer system. The blockchain stores digital records in encrypted data blocks that form a chain, hence the name. When a digital coin, such as Bitcoin, is used, the payment is recorded on a block, which then links to the current chain. The network timestamps each transaction and allows the public to verify it. Therefore, it's impossible to alter a record.
Another feature of the blockchain is decentralisation. It doesn't rely on any financial institution or government. This trait facilitates lightning-fast payments because users don't have to wait for third-party processing. Cryptocurrencies are uniquely built to serve the online gambling industry. They provide gamblers with several benefits that make them more appealing than fiat currencies. Transacting with digital coins means speedy payments, few charges and improved privacy. Over time, an increasing number of players realised what they could achieve with crypto and embraced it as a casino banking alternative.
One concern has always been the learning curve of using virtual currency. The notion is that cryptocurrency is highly suitable for millennials and the younger generations who grew up with tech, and that is true. However, information about digital coins is readily available for anyone who needs it. For example, online Bitcoin gambling sites usually have guides on buying coins. Once you understand how to acquire crypto coins, the rest is easy. Depositing and withdrawing through virtual currencies is not much different from regular fiat transactions. As players continue to get comfortable with crypto use over time, the more popular the payment systems will get.
The Appeal of Gaming with Digital Coins
What would motivate a player to pick a virtual currency over fiat currency? For starters, crypto gives you more value for your money. Conventional transactions sometimes incur fees that can eat into your budget. Even if a casino has free deposits and payouts, your preferred banking solution might slash a percentage of your funds. Digital coins have some of the lowest transaction costs. You also don't have to worry about hidden fees from banks or third parties. Since the blockchain is peer to peer, users don't have to pay handling fees.
Crypto transactions are highly secure. Unlike credit cards or online banking, you don't have to provide any financial details. Once you get a wallet, you only need an address to send and receive money. In an age where cybercrimes are getting more sophisticated, online gamblers have to be extra cautious about the information they transmit. For casinos, cryptocurrency payments reduce the risk of chargebacks. Regulators also recently introduced KYC and AML requirements for crypto casinos to curb fraud.
Another reason digital currencies might dominate the online gambling sector in the future is fast transactions. Players love it when they receive their winnings promptly. Virtual coins allow that. Depending on the currency, withdrawals can take 15 minutes to a few hours.
Is Crypto Here to Stay?
Given current trends, it wouldn't be a stretch to say that cryptocurrency gaming has a solid future. Undoubtedly, the gambling sector is still discovering the value of digital coins as payment alternatives. It's why crypto casinos are not widely common. However, the advantages for players and operators are hard to ignore. Apart from that, the crypto industry is seeing recognition from governments and regulators. For a long time, virtual currencies didn't warrant any attention because many authorities didn't view them as viable payment methods. Now, different countries are establishing legislation to govern the use of digital coins.
Some nations like El Salvador have gone as far as to recognise Bitcoin as legal tender. While the practicability of such a move is a whole other topic, the takeaway is that cryptocurrency acceptance is growing. With increased prominence comes better accessibility. Hence, blockchain transactions might soon be available to almost everyone who prefers them. Another aspect that speaks to the future of crypto gambling is the continued development of new coins. Gamblers have dozens of coins to use for casino gaming, and the number keeps rising. Unlike before, players are not restricted to Bitcoin sites. The blockchain network will continue to evolve, and with it, cryptocurrency gambling. Although digital currencies cannot replace fiat, they are set to transform the payment ecosystem. In fact, they are already doing it. Cryptocurrency fills the gaps left by traditional banking methods. As long as they continue providing the same benefits, digital coins will be around for a long time. The use of blockchain for more than just cryptocurrency will also contribute to the technology's longevity. Therefore, gambling operators that have yet to support virtual currencies should start considering it.