Bitcoins and Their Role in Online Casinos


August 19th, 2014 Bei Maniago

Photo from bitcoin.org

Yesterday, we launched an article entitled More Join the Mobile Casino World. One of the casinos we featured is Cloudbet, which is incredibly unique from the others since it’s the only one that accepts bitcoin. The other two needs real cash from players. Its difference attracted many players, both habitual and newbies, that we decided to dedicate a more comprehensive discussion about it, especially its impact in online casinos.

To begin, what is bitcoin? Bitcoin sounds like money you get when you play online games or World of Warcraft. Well, it’s actually something similar. It’s a digital, electronic, or virtual currency, which means it’s not real money. However, like regular money, you can use it to buy items or trade.

Over the last few years, we’ve seen more people getting interested with bitcoins because of the many advantages they offer. These benefits also affect online casino gaming. One of the biggest ones is that they are non-regulated. Now this may sound like something bad—and indeed there’s a risk since it makes them more vulnerable to money laundering, among others—but for many players it’s something great. They are no longer at the mercy of very strict government regulations when it comes to bank transfers. Their accounts are not in the watchful eye of banks. Because of the lack of such intervention, bitcoin-based casinos can accept payments and deposit winnings instantly.

Bitcoins are not susceptible to any kind of inflation simply because it’s not controlled by financial institutions and the government. There’s no one that dictates how much it’s worth in the market. Because of that, bitcoins are also unaffected by the ever-changing currency value exchanges. Unlike real money where the value of your dollar can go up or down depending on what type of currency the online casino accepts, bitcoins’ value remains the same regardless where you play.

A huge challenge with bitcoins is how to acquire them. Today you can get them using your credit card, buying them, or trading. Online casinos such as Cloudbet can provide you with detailed instructions on where and how to get bitcoins after you have signed up. Take note, however, that not all credit cards can accept or manage bitcoins. Further, bitcoin prices have been dramatically increasing, though experts believe they will eventually taper very soon.

There is also the issue of safety. Many players like the anonymity that comes with using bitcoins. Again, with no banks and no government looking into your accounts, you are not required to provide many personal details to online casinos; they can go in and out of the virtual gaming floors without hassle. However, since the transaction can be untraceable, it may be difficult to determine balances and vulnerability to theft, which has already happened among many bitcoin users. Since there are also no existing regulations on bitcoins yet, you have no legal recourse in case someone steals from you.

Regardless, bitcoin is showing some great promise in its role in online casinos, and we may find more competitors of Cloudbet very soon.

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