Bitcoins being a relatively new and volatile currency system has its own disadvantages but it is most definitely one of the most evolving concepts in today’s rapidly changing technological world and has its own offerings in terms of versatility, securities and hence attracting a lot of attention from not only the gambling and casino fraternity but also from other spheres as well.
The Emergence of Virtual Currencies
With the online gambling market being a constantly evolving one and the world is slowly turning to transactions with virtual money for agility and security, it is quite evident that the gambling world will also turn towards the usage of virtual currencies as well. And what better way to transact than Bitcoins? Unlike real currencies, Bitcoin is not controlled by any financial authorities. It uses peer to peer technology and transactions and issuance of the Bitcoins are carried out through the Bitcoin network. As much as there are advantages of using Bitcoins, there are certain disadvantages of using Bitcoins as well. This article discusses in detail the pros and cons of Gambling with Bitcoins. Before we talk at length about the pros and cons of using Bitcoins for gambling, let us first in a short premise, discuss how to gamble with Bitcoins.
Gambling with Bitcoin
Gambling with Bitcoin is one of the easiest concepts to work with. Before one jumps on the bandwagon of using Bitcoins for gambling, one needs to understand two basic facts:
- One needs to have enough Bitcoins to play: In order to use Bitcoins as a formal trading method in a casino one needs to fund an individual Bitcoin wallet with enough Bitcoins to at least place the minimum bet amount. Funding a Bitcoin wallet can be achieved through several options for acquiring Bitcoins such as Local Bitcoins.com, Coinbase.com portals, or maybe buying them from a friend.
- The Casino chosen to play for accepts Bitcoins as a trading method: Certain Casinos accept Bitcoins along with other conventional currencies and payment methods, while the newer and technologically advanced ones are completely loyal to the virtual cryptocurrency system. There is not much of a difference in wagering money via traditional currencies and various crypto-currencies like Bitcoin. The only thing to look out for is whether the casino accepts Bitcoin as a payment method. There are enough resources on the internet to verify one’s choice of a casino and its compatibility with Bitcoins. Once you get the perfect match, you are ready to set the ball rolling.
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How Does Bitcoin help proactive Gamblers?
Bitcoin being a virtual currency is much safer to use than traditional currencies. It uses cryptography and hence ensures safety, anonymity, and security and gives the casino buffs much freedom to play without compromising their safety and security of their bank's accounts in the big bad world that the internet sometimes shows itself to be.
Pro’s & Cons of using Bitcoin for Gambling
Now that we have a fair idea of how and why to use Bitcoins as a means to gamble, let us now discuss the advantages and the disadvantages of using Bitcoin as a Gambling resource.
Some of the Key Benefits are
- Cost-Effective: Using Bitcoins is much more cost-effective than using traditional currencies in a casino. In the case of traditional currencies, while transferring money to the virtual wallet, most of the banks do deduct a nominal charge which cumulates to a considerable amount over a period of time. The same happens while transferring the bet amount to the casino’s account over the internet. This, however, is not the case with Bitcoins. They are transferred for free across accounts saving a lot of money for the players as well as the casinos.
- Anonymity: Bitcoins Transactions work on trust and real-time transactions. In the case of transactions with traditional currencies, there is a possibility of the transfer being phished and an amount getting transferred elsewhere. This is never the case with Bitcoins as all accounts are verified. Once the payment is verified, there is no additional hassle of the identity verification of the gambler or the casino.
- Transparency and quickness: Transfers of amounts through traditional currencies most often get interrupted due to various issues like payment gateway failure or failed authentication. Bitcoin Transaction, on the other hand, is fast and does not require any additional layer of authentication. They work on real time basis. As soon as the Bitcoins are being transferred to an account it becomes readily available for use, unlike traditional currencies which generally have a hold period of being able to be used.
- Better Odds & Payouts: As added incentive, wagered money through Bitcoins attract a lot of better odds and payouts. Casinos in a bid to promote their business collaborates with Bitcoin users and offers attractive bids and payouts for players using Bitcoins as a means to put their money at stake.
Key Drawbacks of using Bitcoin:
- Issues with Comprehensions: Bitcoin is a completely different ballgame in so far compared to traditional currencies as far usage is concerned. This can be a problem with new users as the operating model of Bitcoin transactions differ from that of traditional currencies. Unless the players completely understand how the Bitcoin network works, they might stand to lose more money compared to winning.
- Security Issues: Since Bitcoin is an open-source peer to peer currency network, there is no central authority or financial body to take care of the security aspects of such a widespread network. Implementing security measures is more often than not dependent on the user and does not follow any strict guidelines. This can sometimes cause a few eyebrows to raise but this being cryptographic in nature is generally a safe option to use.
- Volatility: The only tangible disadvantage of using Bitcoins as a resource for paying gambling bets is the fact that it is very volatile i.e. there can be a possibility that its values change very fast, often on an hourly basis such that the actual value wagered or won an hour earlier might get appreciated or depreciated in no time.