Usually, casinos use local currencies to issue players chips and pay prizes. Now, however, things have started to change, as more and more digital casinos are receiving payment and offering prizes using Bitcoin. It is just a reflection of the new economic trends. That means they’re having to implement all new software, capable of streamlining operations, distributing players’ winnings, and calculating local currency rates with respect to Bitcoin.
This means that someone can enter with dollars or euros and place their bet in Bitcoin in order to win in that cryptocurrency. The software will record the amount wagered and calculate the odds of winning and the possible profit to be delivered. One of the most popular games among gamblers is poker, and we’re seeing cryptocurrency options surge ahead here.
What impact has this had on the use of Bitcoin?
Since Bitcoin only started to be widely adopted a few years ago, it is difficult to estimate the casino world’s impact on its adoption. Currently, there are still no regulations for reporting their profits and losses in Bitcoin; establishments are only expected to do so in the currency of the country where they operate. In fact, in some countries, it is illegal for casinos to operate with Bitcoins at all, but that is likely to change as the adoption of cryptocurrency grows and authorities become more aware of the advantages they offer.
What are the challenges for casinos?
There are some significant challenges for casinos, of course, partly because transactions using Bitcoin (and other cryptocurrencies) are much harder to trace. When using traditional currencies, it is easier for casinos to keep track of spending and withdrawals. In addition, there is often a series of data associated with each individual, including their financial movements within the business.
If a misunderstanding arises, it is generally possible to resolve it by looking up the payment history and observing the player’s economic behavior. This is how casinos have operated for years – but cryptocurrencies don’t offer the same traceability. Crypto casinos may therefore need to start considering other options, such as Colored Coins, to make tracking easier.
It is worth pointing out that despite the challenges, there are many benefits to using Bitcoins in casinos. For starters, non-local players can enter a gambling site and start playing at once without the need to figure out local currencies or search for money exchanges and deal with the fees they may charge. This significantly increases a casino’s potential income.
Additionally, some gamblers prefer not to reveal their identities or have casino-related activity show up on their bank accounts. To service this preference, some merchants use discreet names when billing credit cards, obscuring the gambling aspect. This is part of respecting clients’ privacy, and it’s something many casinos do. However, Bitcoin adoption kicks it up a notch; using Bitcoin brings a level of confidentiality that does not exist with many conventional currencies, increasing anonymity and player satisfaction. Someone could play for an entire evening on bitcoin slots, and their bank would be none-the-wiser.
What are the main differences between regular casinos and crypto casinos?
Well, the first big difference is the use of the technology behind cryptocurrencies to make them more anonymous and secure. This means that you, as a user, do not have to provide financial information to play. Hand in hand, all transactions are done through the blockchain, which means that there is maximum transparency; anybody can look at these transactions and verify that they have been done correctly.
Furthermore, winnings can be accessed almost instantly, as transactions are very fast, and the costs behind each one are much lower. The algorithm used in many crypto casinos is also much fairer than many traditional algorithms. Provably Fair is an algorithm that eliminates the possibility of a person manipulating the games by using the blockchain to avoid any kind of intervention in the bets.
Of course, crypto casinos don’t boast quite the atmosphere and pleasure of standing in a brick-and-mortar building, surrounded by lights and chiming machines… but they make up for it in other ways.
Bitcoin’s forecast for 2024
So, where is Bitcoin likely to go next, and are crypto casinos going to keep getting bigger and better? Nobody can say for sure, but it’s looking likely that this tech is going to continue expanding.
Bitcoin has almost tripled its value in the last year and has surpassed $44,000 per coin, thanks to the market’s optimism about its near future. This is due in part to spot ETFs, whose approval is practically assured and discounted by the market at the moment. Michael Saylor, CEO of MicroStrategy, believes that these exchange-traded products could be the biggest advance seen on Wall Street in 30 years.
Furthermore, the halving of Bitcoin network rewards scheduled for April 2024 is also generating a significant tailwind for the reigning cryptocurrency. The market expects the synergistic effect to boost the current uptrend and drive digital assets to unimaginable heights after their rather tragic 2022.
