What used to be a dream in the pipeline has become a reality. Cryptocurrency was only once touted as the money of the future. Now, it is an inevitable force that is dominating the world of business, including gambling facilities. Many casinos now accept both Bitcoin and Ethereum. Some even take other types of alt coins, but why? Today, we want to show you the benefits of using cryptocurrency in the gambling industry.
Cryptocurrency is not called that way for nothing. The term “crypto” came from cryptography, which refers to the art of solving codes. The entire logic of cryptocurrency is to use encryption. As such, it is founded on a single tenet of principle: security.
Cryptocurrency is built on blockchain technology. It is a complex process that results in a digital ledger of transactions that are difficult to penetrate. For one, crypto transactions require two-factor authentication. First, you have to log in to your digital wallet. After that, you have to confirm your identity by entering a code. This code can either be sent to your registered email address or phone number.
Cryptocurrency in gambling is also anonymous. People cannot identify who made what transactions. If you do not know it yet, there are many banks that do not allow fiat transactions between their establishments and casinos. What you could do is to buy a digital coin, and your bank would approve it. Use the digital coin to deposit money to the casino and then reverse the process if you are withdrawing your winnings to your bank.
Now, we are not saying that cryptocurrency is faster than traditional banks. For example, a Bitcoin transaction can take either seconds or an hour. On average, it can take from 10 to 20 minutes. If you compare this with banks or other payment systems, it does not stand a chance.
However, you have to consider that speed has something to do with decentralization. What this means is that there is no single entity that is verifying the transaction. Instead, the network is composed of many computers from around the globe. If there are 1,000 computers, 501 of these must approve your transaction before it goes through.
While this can take an hour sometimes, it is much faster if compared to a bank’s ACH or automated clearinghouse, which takes four days.
This should be of little concern now, especially that there are companies that offer an arbitration service between the decentralized coin networks and the users. These companies make the transactions faster if you use them, for a fee, of course.
Because the transactions move quickly and are anonymous, it did not take long for the gambling industry to catch on. Casinos know that if players want to play, they want to play now. As a result, digital coins became a preferred mode of transaction by many players. There are even casinos that deal with cryptocurrency only. Today, there are sites that offer free online slots in the hopes that if you like the game, you will invest in cryptocurrency and use that to play.
Better Value for Money
Cryptocurrency has a limited supply. It is not like fiat money where a central bank can print as much as it wants to. The way cryptocurrency works is that one day, it will reach its maximum limit. For example, Bitcoin has a limit of 21 million. As of this time, there are 18.5 million bitcoins already mined. Once that limit is reached, two things are possible:
- The bitcoin logic will be changed to accommodate more supply
- No other bitcoin will ever be mined anymore
Whatever happens, the supply is limited. It takes computer power and electrical power to mine bitcoin. Mining simply means solving a blockchain. If you solve a blockchain, you get rewarded with bitcoin. This reward gets halved every four years. And every time this halving happens, it becomes increasingly difficult to earn it.
Casino operators know this: anything that has a supply limit has value, and this value will get bigger. This is why bitcoin prices are out of this world. It started at $196 in 2013 and is now valued at $31,000 per coin. Can you just imagine if a casino accumulates a lot of these?
In any gambling industry, we know that there are more losers than winners. Even if there is a jackpot winner, the prize is not even enough to bankrupt a casino. Whether you are the casino or the player, accumulating cryptocurrency in your portfolio is an option you couldn’t go wrong with. The price of your coin will increase, and it is just logical that you start amassing them now.
There will always be a new cryptocurrency around the block. For as long as a company can produce better technology, a new coin will be “minted” in the digital space. Be cautious of these.
If anything, follow the lead of the casino industry. The leaders here are cash hawks who keep a close eye on their money. As such, they will never trade a type of digital coin if they think it is not a good investment.