Generating £14.4 billion in the UK last year, gambling is a thriving industry and popular pastime for many people around the world. The remote casino and betting sector accounts for 37% of this market and is continuing to grow as more people enjoy the convenience and choice available online.
The use of Bitcoin and other cryptocurrency is relatively new to the world of online betting and is growing in popularity. There are a number of top bitcoin betting sites that offer the opportunity to bet safely and securely online, click here to see more.
But where did bitcoin gambling begin and why do players choose to use this currency?
One of bitcoin’s most appealing features is its anonymity. This currency was created in 2008 and works as a decentralized payment system where transactions are anonymously recorded on a distributed ledger, known as the blockchain. These transactions are then completed through a process called mining.
Those looking to use bitcoin for online gambling will first need to install a bitcoin wallet on their mobile or desktop. A piece of data known as a private key is used to sign each transaction made and provide proof of their source. Once you have this set up, the process for betting using this cryptocurrency is pretty straightforward.
The use of bitcoin in online betting
Betting using bitcoin has been around almost as long as bitcoin itself. In 2013, 50% of all bitcoin transactions were made for the purpose of betting and as the number of online betting websites has grown, so has the number of transactions being made.
By 2017, the number of bitcoin transactions for betting had reached over 337 bets per second, with the average amount of bitcoin being wagered per minute being around 3.09.
Using this cryptocurrency has its merits for both gambling operators and their customers, but it does also come with some limitations and considerations that need to be made.
What are the benefits for gambling operators who choose to accept bitcoin over real money?
Bitcoin appeals to those setting up online betting websites due to its simplicity, low expenses and set up related costs. The transaction fees are either zero or very cheap when compared to other forms of payment methods. Without these fees, site operators have the ability to offer higher payments or better odds if they wish.
Another benefit is the total elimination of charge backs, which are often a nuisance on regular gambling websites. As transactions cannot be reversed through the blockchain, any deposits and withdrawals are final and cannot be changed.
Being a bitcoin betting site also allows you to achieve a much broader reach than a real money site. Different countries have different regulations for online gambling, with some being extremely restrictive. By not relying on the local currency as a payment method, players in countries that are usually inaccessible are able to sign up and pay through the blockchain, regardless of their current location.
What about the benefits for those making online bets?
Betting with bitcoin has a lot of advantages, many users agree that the speed of making deposits and withdrawals is what first encouraged them to use this payment method. Rather than waiting hours or days for money to reach you, using bitcoin your transaction is processed in a matter of minutes. While this will differ depending on the betting operator and the amount or size of transactions being made, in all cases it is usually a much quicker process than traditional methods.
Reliability is also a strong positive for players. Without the involvement of third-party processors, you are unlikely to face declined transactions.
Bet makers are also drawn to these websites by the promise of bigger and better bonuses and higher limits. These bonuses may include deposit match bonuses, referral bonuses or sign up offers and are usually bigger than those offered on traditional sites. This is because running costs are cheaper for the operator and therefore they are able to offer more competitive incentives.
However, one consideration that must be made is the volatility of bitcoin as a currency. Although, this is something that applies to all those making cryptocurrency transactions and not just online gamblers. Bitcoin is very volatile and you must expect the value of your currency to go both up and down. If it decreases in price, the amount you will take home from a winning bet will go down too.
This risk can be managed by selecting online betting sites that allow you to convert your bitcoin into something known as FIAT currency. This will help to keep the value of your cash stable while in your betting account and still allows you to withdraw it in the form of bitcoin when you choose to.
Overall, it is clear that the online gambling industry has taken a shine to cryptocurrencies like bitcoin. This innovative currency has given online gambling sites and their customers the opportunity to make secure, anonymous transactions that are quicker and more seamless. While it is not without its risks, bitcoin is a game changer for online betting communities and will continue to grow in popularity and recognition for years to come.Last updated on