Cryptocurrencies and blockchain technologies have seen their application spread across many platforms.
The gambling industry is also taking full advantage of the benefits offered. Cryptocurrency brought security, anonymity, and transparency to online gambling. Business is booming, and profits are flowing.
The Growth of The Infant Cryptocurrency
Bitcoin was the very first registered cryptocurrency. It was created and registered in 2008 and has since proved to be very useful in many applications including online casinos, e-commerce, and many more. Crypto portal ICO Pulse is saying that bitcoin casino industry is especially on the rise. Watch out regular online casinos, progress is coming!
So how does cryptocurrency and blockchain work? The blockchain is basically made up of blocks, these are batches of certified transactions which are chained together. These transactions are chained together in such a way that any attempt to fraudulently corrupt or rewrite the recorded transaction is not allowed.
So, how did these cryptocurrencies and blockchain platforms find application in gambling? Cryptocurrencies bring certain advantages to the table.
Major Advantages of Cryptocurrency
- Anonymity: the fiat currency requires a ton of personal information before certain transactions can be carried out. The cryptocurrency platform prides itself over the anonymity status it provides to users. By eliminating the personal information, the cryptocurrency platform has flung the door open to anybody and everybody who is interested in utilizing it for any transactions
- Security: with the blockchain platform, it is practically impossible for fraud to occur. The transactions are recorded carefully and safely on the blockchain platform.
- Transparency and trust: the major issue with the usual casinos and gambling establishment is the transparency of a game and the trust in the establishment. When blockchain technology is used, there is no third party interference with the game.
The above listed are but a few advantages the cryptocurrency offers to the gambling business, but certain things could potentially negatively impact the gambling world.
Some Disadvantages of Cryptocurrency
- Unknown player identity: the players could be anybody. They could use the account to launder money through certain schemes.
- Some jurisdictions have law and policy prohibiting online crypto gambling thus reducing the market size for the gambling platforms.
Quite frankly, the advantages and user-friendly applications of the cryptocurrency far outweigh the little cons associated with it.
The potential to reach new market spread across different countries is quite attractive. It will maximize profit for both the gambling establishment and the players.
To checkmate the little remaining disadvantage associated with the cryptocurrency, the same regulations that apply to the usual casino also apply to cryptocurrency gambling.
The potential impact of cryptocurrency on gambling is enormous. Although the majority of governments have not declared it an official form of legal tender, the apparent usefulness of the digital currency has seen them shift ground on their original stand.
The use of cryptocurrency has allowed businesses to reach new markets and provide security along with anonymity to players.