Bitcoin’s popularity has skyrocketed since its introduction in 2009, reaching an all-time high price of close to $20,000 per unit in December 2017.
It has now become the preferred choice of payment for many online transactions, and the online gambling community has been quick to take advantage of the cryptocurrency’s many benefits. Here are a few reasons why bitcoin is becoming a popular payment method in the gambling industry:
Bitcoin is a decentralised digital currency, which means that it is not regulated by any national government or authority. In effect, using bitcoin as a payment method makes gambling accessible to players located in many countries where it isn’t legal. The cryptocurrency frees players from worrying about the often complicated rules and regulations imposed by governing authorities. This widens the customer base of online casinos considerably, allowing them to attract offshore players who weren’t accessible earlier.
By transacting with bitcoin, users are allowed to gamble anonymously, without the need to produce documentation, or even create an account, in some cases. This means that users’ transactions cannot be tracked and their personal information is kept secure. Casual gamblers worried about a social stigma that comes with the activity, can partake without the fear of being judged by their peers.
A big drawing card is that users don’t have to pay any tax on their winnings when they receive their payouts in bitcoin. Gambling earnings are often subjected to heavy taxation, but given the anonymity and decentralisation that comes with bitcoin, players don’t have to pay a dime.
Bitcoin transactions are not limited by a casino’s daily, weekly or monthly withdrawal limits, which can often hinder a high roller’s performance. Players who want to bet large amounts often find bitcoin to be their preferred currency. In addition, regulators cannot control how much cash gamblers send to each other, making it possible to transfer an unlimited amount.
When stored correctly, bitcoin is one of the most secure digital currencies in the world. When using credit cards or payment platforms such as Paypal, users’ financial details can be vulnerable to hacking, phishing or misuse. Bitcoin, however, leaves no trace and is comparatively a much safer method of transacting online.
Perhaps the most attractive quality of bitcoin is that it allows for instant transactions that can be confirmed within a matter of minutes on most reputable gaming platforms. Traditional bank transfers often take days to complete, with international remittances taking even longer. Bitcoin gamblers can withdraw their earnings instantly, or fund their accounts for further activity, without the delay that comes with other payment methods. Even in the slowest cases, bitcoin funds are accessible within the same day.
Lower Transaction Costs
As well as being quicker than other online payment methods, bitcoin is a less expensive option. The transaction costs associated with the digital currency are far less than those that come with bank transfers and credit card payments, which often levy a significant percentage as service fees. This benefits both the users and the house, as players pocket more of their winnings, while the casino saves money on credit card fees.
Widely-Offered by Casinos
With the recent increase in traders offering bitcoin as an acceptable payment option, more and more casinos and online bookmakers are realising the convenience and advantages that come with it. Bitcoin has been added as an accepted currency in many popular gaming sites, while newer bitcoin-only casinos are popping up on the internet too.
These casinos or sports betting sites deal exclusively in bitcoin, and offer just as wide a variety of games as traditional sites. Users do need to be careful when using the less reputable platforms, but there is a clear movement towards bitcoin as a preferred method of payment for casinos worldwide.
Promotions and Bonuses
Gaming sites that accept bitcoin payments often entice users by offering them great deals when they use the digital currency to transact. They offer rewarding incentives for switching to bitcoin, and players are taking advantage of the promotions on offer. For example, players who choose to collect their payouts through bitcoin rather than traditional methods, get a 10% bonus on their winnings.
In conclusion, given that bitcoin originated on the internet, the currency is optimised for online gambling. It effectively eliminates the inefficiency, cost and risk that comes with traditional payment methods that were never really designed for the digital age. Bitcoin’s popularity is continuing to expand as gamblers and casinos alike choose its relative security, privacy, efficiency and cost-effectiveness over other options.