Since its inception a decade ago, Bitcoin has taken the world by storm, although things weren’t always this way. When Bitcoin first emerged, people did not understand what it was, and many people saw it as a fad. Unsure of the longevity, safety, and consistency of this new type of currency, people were wary to get involved and investors were quick to steer clear.
However, there were some pioneers who took the plunge, who saw Bitcoin as an innovative new approach to currency that was set to disrupt the way banks, businesses, and nations thought about wealth. Some of these early investors, who bought bitcoins for mere pennies, are now sitting on virtual stocks worth hundreds of thousands, even millions of dollars. In 2021, Bitcoin is a hot topic, and many people still want a slice of the pie. The online casino industry is no exception, and while it is not totally widespread, many have already begun trading in Bitcoin. Casino Reviews, a New Zealand casino reviews website even has a separate category especially for Bitcoin casinos, so it seems like the trend is catching on and we’ll likely see more casinos adopting bitcoin in 2021. Keep reading to find out how Bitcoin is affecting the world of online casinos.
What is Bitcoin?
Bitcoin is a virtual, digitally-encrypted currency that was launched by an anonymous programmer in 2009. It doesn’t exist in the real world, other than a code that represents a Bitcoin or a part of a Bitcoin. All transactions in Bitcoin are monitored through a constantly updated ledger known as the blockchain. All blockchain activities are shared with thousands of other bitcoin wallets, making it impossible to spend bitcoins you do not own, duplicate existing bitcoins, or undo or falsify transactions.
Although many businesses were slow to react, others began tentatively trading in Bitcoin. More and more customers want to spend Bitcoin online, and slowly the amount of places where you can spend bitcoin have increased, including many online casinos. While the days of early investors becoming Bitcoin millionaires may be over, there is still money to be made buying and selling bitcoin against the prices of real currencies.
A larger audience
The online gambling sector has become huge with the rise of the digital age. The ease of access to online casinos and the range of games they offer regularly draw new customers. Around the world, more people are gambling than ever before.
In many countries, gambling is illegal. In order to enforce gambling laws, governments prohibit banks from processing payments made to and from online casinos. With bitcoin, users have found a way around these measures. Bitcoin is an international currency that knows no borders, and due to its robust encryption, is entirely anonymous and nearly impossible to trace. Tapping into this previously contained market has allowed casinos to reach a much wider audience and offers people a safe, hidden way to access gambling websites.
Instant payments and no tax
Another reason for Bitcoin’s appeal compared to traditional currencies is its instant payment processing. Because of its public ledger, and because it is entirely digital, Bitcoin does not have a central authority, nor does it require banks to hold its wealth. Bitcoin transactions happen directly from peer to peer with no intermediary required. This means transactions take place almost instantaneously from anywhere on the globe. Traditional methods can take anywhere up to 48 hours to send and receive money.
Also, because it is not recognized as a real-money currency, it is not subject to the usual rules of taxation. This means players cashing out of casinos, and the casinos themselves, do not have to pay any tax on their profits.
As you can see, Bitcoin has many perks and is ideal for thousands of people worldwide who want to use online casinos anonymously and wish to receive the full amount of their winnings. However, despite all the positive things there are to say about Bitcoin, it still tends to be volatile and unstable.
Of course, this can work in your favor. If the market swings upwards, you can make a lot of money and safely sell your bitcoin for a more stable currency to protect your profits. On the other hand, the exchange rates can work against you, and you can wake one morning to a considerable loss in bitcoin value. Unlike real currencies, Bitcoin fluctuates rather rapidly, and there is often no warning to these dips and rises.