Bitcoin casinos may soon be the norm for real money online gaming across the world. This digital currency offers a very tempting combination of anonymity and convenience. Bitcoin casinos attempt to take full advantage of the benefits of this new financial market, but players also need to be aware of some of the disadvantages that result from such a seemingly smooth and secure transaction method. To understand what this cryptocurrency offers, its pitfalls and its pros, we’ve gone into detail below.
What Is Bitcoin?
Bitcoin is a form of digital currency, or cryptocurrency that has been making headlines in recent years. People laud it as the best way to make online payments and some go so far as to claim it will replace the stock exchange one day. The truth is somewhere in between however. Bitcoins are also a way to make convenient online payments. You can use Bitcoins just like you would normal cash, and you can use Bitcoin services to send and receive cash.
The Advantages Of Using Bitcoins
- There is no central regulator – The Bitcoin system is a self-regulating system so there is no central agency that monitors or controls Bitcoins. The system regulates itself by using a system called Blockchains to record and register every single transaction made with Bitcoins. This system determines the value of Bitcoins and also facilitates their transfers across the world.
- Bitcoins are secure and private –The anonymity inherent in Bitcoin transactions help to make the currency private but also very safe from outside influences like hacking.
- Instantaneous transfers and low fees – Because Bitcoins work in a decentralised network, there is no central agency that will charge you fees or admin costs. All transfers happen almost instantaneously.
The Disadvantage Of Using Bitcoins
- The currency is quite volatile – because Bitcoins are not linked to common financial markets, they can vary quite drastically in value at times. The same can be said for any financial market but Bitcoin markets do not have regulatory agencies to step in and assist any big crashes.
- Limited merchant support –Bitcoins are currently supported by over 100 000 businesses across the world but most of these operate online. There are always one or two exceptions where some stores will actually process and accept Bitcoin transactions, but in general you can still encounter many shops that simply will not accept Bitcoin.
- Anonymity cuts both ways – The fact that you gain a lot of anonymity when you pay with Bitcoins also mean that if you encounter a hacker or scammer your Bitcoins will be near untraceable and you more than likely will never see your coins again or be able to figure out who stole them.
The Features Of Bitcoin Casinos
- Low cost for players and casinos – Since money transfers to and from the casino can happen almost instantaneously with no additional or hidden fees, Bitcoin works out much cheaper all parties involved.
- Bitcoins are a global currency – Bitcoins do not have to be exchanged or traded for other currencies and they are of equal value wherever you use them so it makes players get more value in their gaming when compared with players who need to make currency exchanges.
- No red tape – Bitcoins use can also save the casino money and fees on tax and other admin related costs.
Finding A Reliable Bitcoin Casino
The anonymity and self-regulatory nature of Bitcoin means that there is one big flaw with Bitcoin casinos - they are not regulated by any gaming authority and as such there are many casinos that are fronts for scammers. They may well disappear with your Bitcoins as soon as you deposit them, and there is no way to hold these scammers accountable since it is near impossible to find them again. The best cautious players can do is to check the credentials of a Bitcoin casino. Search the companies involved with the casino and try Bitcoin forums like BitTalk to try and find reputable casinos.