It’s now over a decade since the inception of blockchain technology, a technology that has significantly disrupted the financial sector. The idea of using digital payments in online casinos became mainstream around 2018-2021, following Bitcoin’s price surge. That’s the period when many investors flooded into digital assets, with the majority of them discovering that there were casinos that accepted crypto alongside traditional payment methods. Fast-forward to today, and cryptocurrency payments have significantly transformed the online gambling landscape. Here’s how crypto is still revolutionising online casino payments.
Privacy and Anonymity
Traditional payment methods require players to disclose personal details such as credit card numbers, bank account information, or addresses. But cryptocurrency transactions can often be made without revealing any sensitive information thanks to direct wallet-to-wallet transfers that eliminate the need for third parties, increasing privacy and anonymity.
Crypto transactions require minimal personal information, which is why they are particularly suited to players who like to keep their gambling activities discreet. This is because no identification is attached to a crypto wallet, which is why many crypto gamblers can to engage in online gambling at no verification casinos. No verification casinos allow users to place bets and withdraw winnings without submitting identity verification documents.
Unprecedented Speed
Many UK-based players love playing casino games at NonGamStopBets.UK casinos simply because the vast majority of these offshore sites offer cryptocurrency payments. Cryptocurrency deposits and withdrawals are becoming the norm in the world of online gambling as more players look for new levels of speed in online payments.
Withdrawals used to take multiple business days to be processed, but now they can be processed in minutes thanks to blockchain technology. Blockchain eliminates Intermediaries, which enables peer-to-peer transfers 24/7. It automates transaction processes with smart contracts, which are basically self-executing digital contracts.
Lower Fees
Traditional payment methods are typically plagued by high fees and extra charges. For instance, you can sometimes be charged a cash advance if you use your credit card for gambling. Some of these transactions attract a cash advance fee between 3% and 5%, especially in the case of international transactions, which affects both the player and the casino. This can be a significant drawback of using traditional banking systems, especially when depositing money into your gaming account, converting currencies, or withdrawing funds.
Cryptocurrency has come to offer a solution to these high fees by providing a more cost-effective alternative. This means more of the player’s money goes toward actual gaming, whether that’s in the form of in-game purchases, bets, or even tournament entry fees.
Still, it’s worth noting that some cryptocurrencies offer much lower fees than others. It depends on the network’s design, its consensus mechanism, and current network congestion. For instance, transactions on the Nano network are entirely free, while Litecoin (LTC) offers much lower transaction fees than Bitcoin. It has an average fee of around $0.05.
Global Accessibility
Another compelling reason why cryptocurrency is becoming a go-to payment method in online gambling is that it has eliminated geographical barriers. Traditional payment methods may be restricted based on the player’s current country or region, even if you use a VPN (which can be frustrating at times) to access your account. Still, a smart contract could guarantee the automatic transfer of winnings to your account when you win, irrespective of your geographical location.
Enhanced Security and Transparency
For many years, security has been a critical issue for both players and casino operators. Players want assurance that whenever they engage in online gambling, their funds, and information are protected. Operators on the other side want to offer the best services to their customers.
Cryptocurrency payments use blockchain technology. This technology provides a decentralised ledger that is both transparent and secure. As such, it reduces the risk of fraud because once a transaction is confirmed in the blockchain network, it cannot be altered or reversed. This also prevents chargeback issues, which are common with credit card payments.
Still on transparency, blockchain technology has enabled the creation of provably fair games. The players who have been gambling at online casinos that accept fiat payments only know how difficult it is to prove the fairness of online casino games. But blockchain technology has resolved this issue by facilitating the creation of provably fair games. These games allow players to verify the fairness of every game’s outcome mathematically.
Provably fair games use cryptography to make the outcomes of casino games transparent, allowing you to assess how the outcome occurred and have evidence that no manipulation happened.
Final Thoughts
There are still ongoing debates regarding the use of cryptocurrency in online casinos. Some feel it makes it difficult to regulate online gambling, while others believe it is the way of the future. But the fact is that this digital currency appears to solve many problems facing the online gambling industry.
