Cryptocurrency and its driving force, blockchain technology, have become a popular form of digital currency over the last decade. A fairly new concept for the masses, the advantages offered by cryptocurrencies are making their market expand exponentially.
Anonymity, decentralized structure, high speed of transactions, transparency, and enhanced data protection levels provided by the blockchain technology form the key characteristics of Bitcoin transactions.
In addition to these, what’s drawing several people towards adopting Bitcoins is the ability to have access to their funds in a tax-free manner.
Naturally, they have found an important place in the gambling industry. This altogether gave rise to a whole new form of casinos, commonly referred to as Bitcoin casinos.
Crypto Casinos: A Brief History
After the launch of Bitcoins in 2009, they found their use in a poker gambling website,SwitchPoker.com, for the first time in August 2011.
Erik Voorhees then launched Satoshi Dice in April 2012, which was sold to an undisclosed buyer in July 2013.
Just Dice was born subsequently in June 2013.
The first licensed Bitcoin casino, Bitcasino.io, came into existence in February 2014.
The explosion of Bitcoin casinos continued, along with the stepping in of regulatory bodies by 2016. There are numerous Bitcoin casinos, and consequently, a greater number of gamblers and participants are getting drawn towards them from all corners of the globe.
What are Bitcoin Casinos?
In simple words, online casinos that accept Bitcoin transactions are termed Bitcoin casinos. These online gambling platforms offer various gambling options, ranging from sports betting games, spread betting, traditional casino games like poker, online lotteries, and other new forms of gambling games.
Bitcoin casinos are based on blockchain technology, which makes them operate in a decentralized manner. It also facilitates quick financial transactions and guarantees easy financial returns, which ensures that data can’t be faked.
Despite their popularity among the masses today, there are legal concerns around the operation of Bitcoin casinos.
Most Bitcoin casinos are considered illegal in the US; however, these casinos’ online nature gives them the freedom to operate from anywhere, and gamblers too can participate from any corner of the world as their identity and transaction data is completely concealed and protected.
Some famous Bitcoin casinos are SatoshiDice, Satoshibet, Sportsbet.io, Bitstarz, 7Bit Casino, etc.
24VIP Casino, Bitcoin Casino, and Bitcoin Penguin are Bitcoin casinos exclusively available for US players. To find more information regarding bitcoin casinos you can refer various online articles and websites.
Notable Offerings and Merits of Bitcoin Casinos
Let us find out more about the exquisite features of Bitcoin casinos:
- Offer anonymity to its players, eliminating the need to submit KYC documents, credit card details, etc.
- Bitcoin casinos are influencing the growth of the cryptocurrency market directly.
- Permits cryptocurrency transactions.
- Promotes faster transactions with low transaction charges.
- Offer transparent transactions
- Many Bitcoin casinos reveal the software algorithm to gain the trust of players.
- These casinos operate fairly without concealed tricks compared to traditional casinos.
- Global operation of these casinos ensures round the clock business operation and generation of revenues.
- The volatility of cryptocurrencies lets users withdraw the money at the right time and liquidate it into fiat currency at the most profitable time.
How Blockchain Technology Plays a Crucial Role in Running Bitcoin Casinos
Blockchain is a digital, decentralized public ledger of all transactions executed by cryptocurrencies. This technology was created for cryptocurrencies that would allow users to easily add blocks of transactions and monitor them effectively.
Blockchain is a typical database that stores information in blocks and then chains the data together chronologically. This plays a vital role in offering transparency and traceability of cryptocurrencies compared to fiat currency.
Decentralized blockchains are irreversible and immutable. Thus, blockchain technology makes Bitcoins decentralized, thereby preventing monopolization.
How Blockchain Technology Helps the Gambling Industry
Bitcoins could be the future of the gambling world because of the support it gets from blockchain’s technological framework. Here are a few advantages that empower Bitcoin casinos to operate better with the help of blockchain technology and attract the masses.
Gamblers don’t need to enter their personal details or financial data in the online Bitcoin casinos. This eliminates the risk of tracking by hackers and identity disclosure by government authorities.
Freedom from taxes and inflation rates
Bitcoins are unaffected by the inflation rates of fiat currencies. This is because only a finite number of Bitcoin units are produced, the value of which can only steadily rise and remain independent from the effects of market crashes.
Gamblers and players don’t need to pay taxes on their earnings and hence retain more profit.
Cheaper transaction fees
Blockchain transaction charges are minimalistic and hence benefit gamblers as they can retain more profits.
With the aid of blockchain technology, P2P transactions can be easily carried out. The speed of transactions is fast because there are no third parties in between.
Blockchain transactions are completely secure because the data is immutable. New blocks of data are always stored linearly and chronologically.
Once a block of data gets added at the end of the blockchain structure, it is practically impossible to manipulate or alter it by anyone because the block has its hash codes, in addition to the hash of the previous block along with its timestamp.
The number of winnings and the availability of the software algorithm make the operation of online Bitcoin casinos quite transparent and hence trustworthy.
Blockchain supported transactions can be viewed with a personal node or with the aid of blockchain explorers—viewing and tracing transactions is easy.
Gamblers own their money entirely as their data is available on the blockchain ledger, so there is no way anyone can manipulate it.
Bitcoins are still unstable and prone to flash loan attacks—two hackers used flash loans and successfully drained about $350,000 worth of Ether from bZx’s lending platform.
As days pass, various projects are leveraging blockchain technology principles and addressing its existing challenges like scalability issues, energy consumption, etc. Thus, attempts are in progress to make the blockchain ecosystem more robust to promote the mass adoption of Bitcoins.
Overall, blockchain has been capable of addressing significant challenges faced by traditional casinos and promoting more and more digital transactions using Bitcoins.