How Bitcoin Casinos Work
Bitcoin's meteoric rise as an international digital currency over the last decade has given rise to a flourishing new economy that runs parallel to the traditional fiat-based economy. The popularity of bitcoin transactions has also caught bookies' attention, creating a new avenue for online punters through bitcoin casinos.
But what exactly are Bitcoin casinos, and how do they work? Let's find out!
What Are Bitcoin Casinos?
Bitcoin is the world's most popular digital currency based on blockchain technology for those new to cryptocurrency. Several online casinos accept payments only in bitcoins, while others feature bitcoin as an additional banking method besides using traditional currencies like the Euro or the U.S. dollar. That means a bitcoin casino is simply an online gaming arena for lotteries, betting, and gambling using bitcoin as the primary currency.
Bitcoin gambling can help anyone wager as it guarantees anonymity when transacting with a casino. For this reason, bitcoin casinos are poised to significantly impact the cryptocurrency market, though the data to support that is still limited at the moment.
How Bitcoin Casinos Operate
Like in traditional online gaming platforms, the software is the key to bitcoin casinos. Leading bitcoin casinos with lots of users use proprietary gaming software developed in-house, while others use rented or purchased versions that can be customized.
The casino software runs the games with minimal human intervention, acting as the table dealer in games that require human players. However, most bitcoin casinos still have an issue convincing their prospects about the fairness of their games. Most of these casinos attempt to restore that trust by disclosing their software's uniqueness and how it works to guarantee fair gaming.
Poker is the most preffered game in most Bitcoin casinos when it comes to games, though you can play hundreds of other titles. That includes games like video poker, roulette, online slots, blackjack, and more.
Common Features on Bitcoin Casinos
While every bitcoin casino is different, they have several factors in common.
For any online casino to succeed, it needs to guarantee its customers fair gambling. Bitcoin punters are also unwilling to compromise on this feature, so every online bitcoin casino needs to guarantee the fairness of their games. Only a few Bitcoin casinos can't offer provable fair gaming, and players aren't very fond of them either.
Because of Bitcoin's decentralized nature, transactions are processed quickly and securely. Unlike in normal fiat currency online casinos where withdrawals take hours or days to process, bitcoin facilitates payments within minutes as everything runs online.
Blockchain store registers data in an encrypted format and doesn't require any personal information. That means your privacy as a user is guaranteed when placing wagers at a bitcoin casino.
Why Bet at a Bitcoin Casino?
Besides securing your personal information, bitcoin transactions come with very low transaction fees, if not zero value. That's because the transaction doesn't need to go through a banking system or any third party. The transactions are stored on the Blockchain, a public ledger that verifies each transaction.
While you don't have to pay any fees to withdraw money from bitcoin casinos, a small amount goes towards facilitating the transaction. However, the amount is really low, and it's possible you won't even notice. The amount goes into maintaining the Blockchain's smooth operation.
As earlier mentioned, Bitcoin casinos can guarantee your anonymity as you don't need to provide a lot of personal information to wager. That means you don't have to link your home address, banking information, or anything else that may compromise your security.
Like any other currency, Bitcoin follows the law of demand and supply. As such, bitcoin continues increasing in value as more people continue adopting it. That means gamblers have a significant advantage while using bitcoin to wager as it can grow in value at any moment.
Are Bitcoin Casinos Legal?
With bitcoins decentralized nature and regulatory limitations, most states in the U.S. frown at bitcoin casinos. Fortunately, there's a good number of bitcoin casinos operating outside the U.S, but with a solid customer base in the country.
Most Bitcoin casinos operate worldwide, as bitcoin's anonymity makes it hard for the authorities to limit the transactions. That's because a lack of open-source information is a regulatory nightmare. However, it would help if you researched first by reading some reviews about a bitcoin casino to know whether it's legitimate.
Secure, transparent, immutable, and decentralized – these are the features needed to make casino gambling fair and trustworthy. Fortunately, these are all attributes that Bitcoin casinos offer by bringing together casino games and blockchain technology. Bitcoin casinos work similarly to traditional betting sites, but with more benefits like anonymity, fast transactions, and low fees. However, choosing the right online bitcoin casino is paramount to enjoying these benefits.