Cryptocurrency seems to be a buzzword these days. Many people have heard of this term in the media, but a lot of people are still not sure what a cryptocurrency actually is.
Bitcoin is still the most talked-about of them all, even though it was the very first registered cryptocurrency that dates back to 2008. Now there are many other cryptocurrencies that have joined this recent phenomenon.
What Is A Cryptocurrency?
Cryptocurrency is actually a currency that is already being used to pay for goods and services online like regular cash. The difference here is that the currency has no physical form and exists only as a digital entity. These digital transactions work by using a technology called a blockchain. This is software that is present in a network of computers and it manages and records crypto transactions.
Each one is chained together in such a way, that it makes any attempt to tamper with these recordings impossible, thus preventing fraudulent activity. Therefore blockchain technology helps to keep transactions secure. Most people have heard of bitcoin but it is thought that there are more than 2200 different cryptocurrencies that are traded publicly.
The total value of all cryptocurrencies stood at around $246 billion last year. Bitcoins still proved the most popular of the digital currency and were valued at $136 billion. The popularity of this hi-tech currency can be attributed to security. As already mentioned, transactions are more secure than those involving regular cash.
Furthermore, this currency removes the power from the banks allowing a more decentralized control of people’s money and this fact has proved very popular with consumers and traders. It’s hard to tell if these cryptocurrencies are the future, as a currency needs stability to survive. Bitcoin has been anything but stable since being introduced and the value of this cryptocurrency dropped to a record low in 2018.
Some cryptocurrencies can be purchased with U.S dollars whilst others actually need to be brought using a pre-existing cryptocurrency. An app is also needed that has a wallet that can hold your currency and then you need to join a trading exchange.
Cryptocurrencies and Gambling
The gambling industry always seems to be one step ahead of the rest. It embraces change and reinvents itself when needed.
There will always be gambling in society whether the industry copes with change or not. But the fact that it is quick to spot technological trends like the internet and apply its products to these new creations means that it is more successful than ever before. However, the huge success of online gambling has had winners and losers within the industry itself. The hands-down champion of online gambling is the slot machines.
Revenue in the UK alone was approaching the £2 billion mark from these games. Losers were betting offices and traditional over the counter betting that showed a decline. The gambling industry now has one eye on the ever-evolving cryptocurrency trend, but its response to it is cautious.
Should it be embraced like the internet revolution? The problem is that these currencies are far from stable right now. Bitcoin had a period of rapid growth before it tanked in 2018 and governments have stood up and noted that cryptocurrencies are no passing trend.
Therefore, they are likely to face some sort of crackdown or strict regulation that could throttle their development and popularity. However, some sectors of the gambling industry have taken the plunge and welcomed cryptocurrencies.
A major draw to online gambling is the anonymity of the entire experience and bitcoin funded casinos only enhance this further. Of course, you will by law still have to register and get fully age verified at a casino that accepts cryptocurrencies, but payments are more secure and leave no bank trace.
Therefore you will not have to include your bank and card details if you want to deposit and play at one of these establishments. This is an attractive proposition to punters and would make cryptocurrency casinos very popular with the general public across the world.
A cryptocurrency casino would have fewer overheads to pay as expenses such as payments to merchants, transaction costs and licensing fees would be drastically reduced. This could have a knock-on effect on the ‘house edge’ that casinos have over punters. With fewer overheads to pay, cryptocurrency casinos would be able to give more back to the betting public.
Cryptocurrency casinos are in their infancy but they already offer advantages to both customers and the casino itself. The main effect on the gambling industry from a cryptocurrency perspective would be to increase security and anonymity. These two factors appeal highly to consumers and would likely increase customer numbers.
However, all slots sites, like, Wizard Slots, and other game sites like, 32red etc will need to be modernized to accept cryptocurrency payments.
An uncertain Future
Although the early signs are positive and prove that cryptocurrencies and gambling are a partnership that would work, government regulation seems to be the main stumbling block to their progress.
Some governments are already considering banning gambling with cryptocurrencies and this trend would drastically reduce the market. Other authorities do not even consider cryptocurrency an official form of legal tender. Even though the future is uncertain due to over-regulation and instability, the gambling industry is ready to cautiously welcome cryptocurrencies.
Some online casinos already accept these as payment without any problems. Now the gambling industry must sit and wait to see whether governments and world authorities follow suit. If this currency is accepted into the mainstream then it will be embraced by all of the gambling industry even though strict regulations will be applied across the globe.
This has already commenced as the EU set up an Anti Money Laundering directive that has cryptocurrencies firmly on its hit list. For the very first time crypto service providers such as virtual-flat exchanges and wallet providers will be under the scrutiny of financial regulatory bodies. Can cryptocurrencies thrive and enhance the gambling industry’s popularity further still? Only time will tell whether the two will be allowed to form a firm partnership.