When Bitcoin currency first appeared as a payment alternative in 2009, the concept was regarded as revolutionary. Invented by a mysterious Satoshi Nakamoto, a pseudonym allegedly used by a whole group of people rather than a single person, Bitcoin fit the online gambling scene perfectly, presenting a perfect solution for a number of issues which can make online gambling quite complicated – even dangerous at time. Law restrictions, identity thefts and sensitive data exposure were the three main issues that the use of Bitcoins for deposits and withdrawals has managed to override.
What exactly is Bitcoin?
The main advantage of Bitcoins is the anonymity it provides to its user. In a nutshell, Bitcoin is a type of a decentralized currency which can be purchased and used for different forms of online trading. They are stored on a virtual cloud account, which, unlike bank account is not insured by a government body.
The downfall of Bitcoin
Recently, things took a turn for the worst when Bitcoins are concerned. More and more online casinos are shedding off Bitcoins as accepted payment method, explaining their decision with several highly unfavourable aspects of using Bitcoins as a payment tool. The most common reasons the online casino operators are reluctant to accept Bitcoin deposits are:
- high fees
- long transaction times
- unstable value
- high-risk element
Using e-wallets and payment cards is usually free; transferring the funds over to the selected casino will not cost you any more than you are already willing to pay. It is therefore logical that players will rather use cost-free alternatives than pay up to 30% fee on a $50 deposit for a privilege of using Bitcoins.
The other reason that the online casinos are introducing alternative digital coins is extremely long transaction processing time – with instant processing that other methods provide, any minute counts and idle time will not sit well with the new generation of players. The time needed for the transaction to be processed will depend on the number of transactions and the fees, meaning that the transfers with higher fees will be prioritized by the Bitcoin miners.The transaction confirmation time should also be added to the equation, prolonging the entire procedure by (potentially) 16 whole hours.
Another major disadvantage to using Bitcoins is of course the value fluctuation, influenced by an array of political and economical factors. For Bitcoin casino player, purchasing the currency can turn out out be a lot more expensive than simply depositing in your local currency or converting you cash.
Still, none of the factors listed above are as crucial as the risk element involved in storing Bitcoins. Having in mind that your Bitcoin funds are not protected by any official bodies, your funds can go down the drain in a second, be it as a result of a hacked server or a computer virus. Naturally, this can cause irreparable damage for both the players and the online casino, making Bitcoin the least desirable payment method for many.
Is there a future to using Bitcoin?
The future of Bitcoin is uncertain, however, with a few system changes, the potential of this currency is immense and many casinos are not giving up from providing the option to their users. If you seek discretion, other payment solutions can’t hold a candle to Bitcoin and finding an alternate solution with the same level of anonymity will not be easy – if you are willing to turn a blind eye to the risks and extra cost it entails, that is.
Trying to withdraw your casino earnings is a real problem in some regions – like USA or Australia – where gambling regulation is still in the grey area and many payment processors are not available. In those jurisdictions, Bitcoin is still the number one option to cash out. In those cases, we would still recommend to use the cryptocurrency even with all those downsides. Of course, this is in case you want to receive your funds fast.
From another perspective, there’s no reason to just stick to Bitcoin. Yes, it’s true that is the most popular cryptocurrency out there, but there are many others who are growing and becoming more relevant in the gambling industry. You can find more information about cryptocurrency casinos at Instant Withdrawals, like Monero and LiteCoin.