The popularity of bitcoin as an international, digital currency has enabled a new economy to flourish in parallel to the existing traditional currency-based economy. While cryptocurrencies and bitcoin transactions continue to gain popularity, they have also enabled a new arena for online gambling, gaming, and lotteries through something called a bitcoin casino.
What Are Bitcoin Casinos?
For those unfamiliar with bitcoins, bitcoin is the most popular digital currency based on something called blockchain technology. A few online casinos transact only in bitcoins, while others offer bitcoin as an additional currency of transaction, in addition to transactions in traditional currencies like the U.S. dollar.
There are growing numbers of online casinos which offer online gambling and money-based games in bitcoin currency. Bitcoin casinos operate all over the globe, though they are supposed to be subject to local laws. Through bitcoin transactions, these casinos offer a wide variety of options for players to bet their bitcoin money on a variety of games, including traditional casino games, gambling games, sports-based betting, online lotteries, and spread betting.
A bitcoin casino is an online arena for gambling, online gaming, and lotteries that deals primarily in the bitcoin cryptocurrency.
While illegal in the U.S., bitcoin casinos are popular due to the anonymity aspect, plus the pull of online game variations with often zero transaction fees and unlimited free daily transactions.
Bitcoin casinos are speculated to have a large impact on the bitcoin market; however, data about this is limited. Still, bitcoin casinos remain an ethical gray area.
Top Bitcoin Casino Sites :
7 Bit Casino
How Bitcoin Casinos Operate
Software remains at the heart of any online gambling or gaming business and the same holds true for bitcoin casinos. Most popular bitcoin casinos with large user bases run their own gaming software, developed on their own. Other smaller players use purchased or rented versions, which may be customized by adding a few unique features to the game.
The software conducts and runs the game, with minimal human intervention. For games needing all human players, the software plays the role of the table dealer (actually conducting the game). Due to the digital nature of their business, bitcoin casinos face the challenge of convincing the users about the fairness of their operations. Most bitcoin casinos attempt to establish trust by openly disclosing how their software algorithms work. For the rest, it's more of a peer to peer reference that works or the uniqueness of their offering in the casino games.
Poker is the most popular game for bitcoin casinos, while a lot of other interesting games, lotteries, and variations of popular games exist (and continue to get invented).
Why Bitcoin Casinos Are Gaining Popularity
Anonymity remains the biggest advantage for bitcoin casino users, and for that matter, for any bitcoin transaction and even the founder of bitcoin, the pseudonymous Satoshi Nakamoto.
Most bitcoin casino sites offer zero transaction fees with unlimited free daily transactions, whereas traditional currency based casinos have set limits and transaction fees. The online digital nature of this business enables global access and easy availability of players in large numbers, around the clock.
Since online games are largely beyond the purview and control of authorities, many online games have been customized with tweaks in the rules of the game. Such variations are not allowed legally in traditional currency-based online casinos, and this has been a major reason for the popularity of bitcoin casinos.
Why Bitcoin Casinos Are Under the Microscope
Traditional online casinos transacting in traditional currencies have defined regulations. Payments in traditional currencies enable tracking and identifying individual players, dealers as well as casinos operators. The same is not the case with bitcoin casinos.
Since bitcoin transactions are purely digital, audit and verification become a challenge. For example, in an online card game, what is the guarantee that the cards have been shuffled and distributed fairly? Additionally, if the player's anonymity is maintained because he or she pays anonymously through digital currency, fair business practices become even more questionable.
A lot of bitcoin casinos require minimal user details (quite often limited to only email and login-name), no age verification, no location check, or other details.
Gambling is not allowed in lots of countries across the globe, and bitcoin casinos make it even more difficult to regulate and control at a global level.
All the above operational methods prove a challenge for authorities, as a new parallel economy is taking shape. Although digital currency-based systems may be cited for their advantages, casino-based gamb.
According to A Major Tesla Investor Bitcoin Will Be Worth More Than $1 Trillion In Under 10 Years.Who knows, if you are the owner of bitcoin, you may have already won and you will no longer have to play in the casino.
Published by Oksana Kvitka