Is there a future for Bitcoin in the online gaming industry?
2017 was the year of cryptocurrencies. To be more precise, it was the year of Bitcoin. At the beginning of 2017, Bitcoin was worth just $1,000. By the end of the year, however, the cryptocurrency had reached a record price of $19,783.21.
The astonishing rise of this digital currency shows that, for many people, Bitcoin and other cryptocurrencies are the future of money. On the other hand, a good many people believe that digital money has no future. Whatever the case might be, last year’s rise in the price of Bitcoin shows one thing for certain – the cryptocurrency will not disappear any time soon.
With such a high demand for Bitcoin, no industry wants to be left behind on paying out on appealing returns. But which industry will be most advantageous is a question difficult to answer. According to estimations, however, the gambling industry is likely to get the most from Bitcoin and other cryptocurrencies.
A research from Casino Reports has shown that more than 50% of all Bitcoin transactions in 2013 were related to gambling. From 2014 onward, 3.7 million Bitcoins have been used for gambling, equating roughly to $37 billion. Moreover, experts predict that Bitcoin will keep on growing, spreading its influence in the online gaming business. But why is Bitcoin so widely used by gamblers?
Bitcoin – the future of money in the online gaming industry
As you know, online gaming operators are appointed with the burdensome task to ensure their clients that their venues are secured. All major operators spend millions each year to provide their clients with ultimate security when it comes to payment methods as well.
Whereas you might think that credit/debit card transactions provide ultimate security when it comes to gambling, the case is not such. In fact, it is far safer to use Bitcoin for online gambling.
First of all, a good many banks would look into your credit/debit card transaction records when you apply for a mortgage or a loan. As you could guess, having a gambling-related transaction record will not make you the perfect candidate for neither loans nor mortgages. But Bitcoin provides 100% anonymity. The way the Bitcoin blockchain is designed secures and protects customers by encrypting their data. Essentially, all Bitcoin transactions are available for all participants to see, but the personal data of participants remains anonymous.
To make Bitcoin transactions, all you need is a name, username and a Bitcoin wallet. This means that neither your ID number, credit/debit card number, nor your home address will be revealed to third parties. And that is the first of many reasons why Bitcoin has a future in the online gaming world.
Secondly, Bitcoin transaction fees are either laughably cheap or there are none at all. And there are no taxes, either. Why? As we mentioned above, with Bitcoin transactions there are no intermediaries. To put it simply, there are no financial institutions to control the transactions and impose fees.
So what if there are no transaction fees, you might ask. Well, obviously, you do not have to pay third parties to process transactions. More importantly, however, you play games with better odds.
As you know, casinos have a house edge, i.e., they have between 1% and 10% advantage over players. Online casinos work on the same principle – that is how they make their profits. Unlike land-based casinos, online venues have a house edge in order to pay transaction fees (usually, most transaction fees are taken care of by the operator). When the fees are few and cheap, online operators virtually do not have to impose high house edges. Thus, players are given a fair chance to win. And if that is not great, we do not know what is!
Casino operators benefit as well
As you can see, Bitcoin provides numerous advantages to players. But there are a lot of benefits for operators as well. To begin with, simply offering cryptocurrency payments is enough to draw a great many players to a venue. But that is not all – the use of Bitcoin greatly eases casinos’ operations.
Traditional payment methods offer chargebacks, right? Well, Bitcoin payments do not. That is why, each player has to carefully check everything before making a deposit, because once a transaction is completed, there is no way to reclaim Bitcoins. Consequently, online gaming operators do not have to deal with players that demand a compensation or wish to reclaim their money. Additionally, with Bitcoin, operators are protected from player fraud.
All in all, Bitcoin will not disappear any time soon. Whether the cryptocurrency will reach the record prize of nearly $20,000 again is not a question we can answer. What we can say for sure is that Bitcoin offers numerous advantages to both players and online casinos. That is why we believe that Bitcoin has a future in the online gaming industry.
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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