The popularity of bitcoin as a digital currency let the new economy to thrive in parallel with existing traditional currencies tied to central banks. Bitcoin transactions are becoming increasingly popular. This has made it possible to create a new area for gambling, gaming and lotteries through online casinos working on the basis of bitcoin.
What is Bitcoin Casino?
Bitcoin is the world’s most popular digital currency or so called cryptocurrency. Some online casinos work solely on bitcoins, while others offer bitcoin as an alternative to traditional currency.
The number of such casinos is increasing. They can be met around the globe, although they must comply with the local legislation. Thanks to bitcoin transactions, these kind of casinos offer a variety of options for players to spend their bitcoins on.
Just a few of them are as follows:
- casino games
- sports betting
- online lotteries
- spread betting
Some of the most popular bitcoin casinos are:
How Does Bitcoin Casino Work?
The software remains a basis of any online gambling project. The same is true for bitcoin casinos. Many popular bitcoin casinos with large user base are based on their own gaming software. Other sites buy or rent it with the opportunity to customize and add unique functions.
The software controls the game with minimal human intervention. In games where a certain number of players must be collected, software plays the role of a dealer. Due to the digital business concept, it is not easy for bitcoin casinos to convince players in the integrity of their activities. The majority of these casinos try to earn trust by revealing the principles of the program algorithms. Others manage to build reputation through recommendations or unique content.
Poker is the most popular bitcoin casino game, but there are many other interesting games, lotteries and a large scope of well-known offers, not to mention constantly appearing options.
Why are Bitcoin Casinos Gaining Popularity?
Anonymity remains the main benefit for users. Any transaction and even the founder of the cryptocurrency, known under the pseudonym of Satoshi Nakamoto, are anonymous.
Most sites offer commission-free transactions and do not limit their number, while such things are not frequently offered in casinos with the usual currency.
The digital nature of this online business provides a large number of players with continuous global access.
Why are Bitcoin Casinos under Scrutiny?
Traditional online casinos fall under regulation. Payments in traditional currencies allow tracking and identifying certain players, dealers and operators. It is not the case for bitcoin.
Because of the fact that bitcoin transactions are digital only, it is not an easy task to verify them. For example, what is the guarantee that in an online card game the cards was shuffled and distributed fairly? Moreover, if the anonymous game is supported, because it is played for digital currency, honest business becomes even more questionable.
In many bitcoin casinos a minimum of information about clients must be indicated (often limited to email address and username), no verification of age, location or other details. Gambling is prohibited in many countries, and to regulate and control bitcoin casinos at the global level is even more difficult.
All the above mentioned puts authorities in a difficult position, because the new parallel economy is spreading quite rapidly. Although digital currencies have many advantages, when it comes to casinos, they create a lot of challenges.
Legal Aspect of Bitcoin Casinos
The nature of bitcoin transactions and the above reasons make bitcoin casinos illegal in the USA. Most of the legitimate bitcoin casinos are situated outside of America. Interested users from around the globe (including a large amount of US players) visit these sites anonymously, which makes it difficult for the authorities to track, monitor and legalize such transactions. The lack of the open access information about this anonymous business complicates the collection of data necessary for rules implementation.
Impact of Casinos on Transactions
Because there is little information, it is rather complicated to assess the impact of bitcoin casinos on bitcoin currency itself. It was said in April 2012 that with the launch of one decent gaming site, the total number of daily transactions increased by nearly five times. This gives an idea about how anonymous world depends on gambling.
The reality is that bitcoin casinos are constantly getting more transactions. This speeds up the use of bitcoins.
Regardless of the type of transaction used – traditional or digital currency – gambling in casinos has always been a subject of discussion from the ethical point of view. If to add the complexity of the transactions, the activity of bitcoin casinos becomes even more confusing. And while it is always very simple to lose your mind when having an opportunity for easy money, users must remember of the legal aspects, challenges and risks.