Gambling as a valid and legitimate recreation has gained worldwide acceptance in the past decades and gambling casinos have become essential sources of revenue in the localities they are located for both the government and the labor sector. In addition, the appearance of the internet during the 1980s brought instant access to information, entertainment, free spins no deposit, and money-making opportunities for everyone with access to a computer.
As the internet became public in the early 1990s, all kinds of business trailblazers jumped to get a piece of the action, including casino operators. Microgaming was reportedly the first to offer casino gaming software in 1994 and collaborated with Belle Rock Entertainment to establish undisputedly the first online casino in 1998, called The Gaming Club.
The term cryptocurrency was first conceived in 1998, a new payment method using cryptography to make business transactions confidential and decentralized. It is a digital currency that can be exchanged online for goods and services. Cryptocurrencies work using blockchain technology, a decentralized technology spread across many computers that manage and record transactions.
Trading in Cryptocurrency
To buy and sell cryptocurrencies, one must establish a digital wallet, an online app that will hold the currency. The cryptocurrency is not stored in the wallet but is gathered by the currency’s blockchain. Digital wallets are like bank books, while the blockchain is the general ledger that records and verifies all transactions of a cryptocurrency. Then there is the cryptocurrency trading exchange, where clients buy and sell cryptocurrency. In some cases, however, the blockchain provider also acts as a cryptocurrency trading exchange. One of the most popular cryptocurrency exchanges is Coinbase, where you can create a digital wallet and trade cryptocurrencies simultaneously.
Speculation Trading Cryptocurrency
Almost all investors in cryptocurrency are engaged in venture capitalist trading, similar to the stock market. Cryptocurrencies fluctuate in value, and speculating capitalists hold on to their currency until they go up in value. This is similar to the initial public offering IPO of stock markets, and cryptocurrency trading also provides ICO or initial coin offering. Cryptocurrency trading is a “buy and hold” strategy, highly volatile in the short term but has long-term potential for growth. However, some very experienced crypto traders take advantage of the market’s volatility by either taking a long or short position in trading, buying low, and selling high, depending on the market’s bullishness.
Cryptocurrency vs. Cash and Credit Cards
Cryptocurrency is not readily usable in day-to-day transactions compared to actual cash currency. The disadvantage of the latter is that cash is bulkier to carry and therefore harder to secure. Cryptocurrency, on the other hand, is secure since all transactions are online. In addition, payment for international transactions is more accessible with minimal trade restrictions.
Cash payments, however, would entail service charges and maintaining balance fees. In addition, credit card transactions are more susceptible to fraud than cryptocurrency payments since disbursements are irreversible after the fact. Businesses also enjoy instant transfers of payments compared to credit cards that will take days to clear. Transactions, likewise, are more confidential than credit cards.
Cryptocurrency and Online Casinos
Cryptocurrency and online casinos are a metaphor of hand and globe; it is a natural development since both are digital. However, it was not initially so since most online players found cryptocurrency strange and complex and were too intimidated in setting up to use one. Online casinos may have been in existence for several years now, but it is only recently that cryptocurrencies were accepted. During the massive media coverage of bitcoin in 2017, cryptocurrencies became payment options for mainstream retailers when online casino operators started to promote cryptocurrency gambling.
There are several advantages in cryptocurrency online gambling over that of cash or credit card online casino play.
- First and foremost is cryptography security against outside threats, both for the online casino and the players. Moreover, credit cards and bank transfers require identity verification, while cryptocurrencies make online casino players anonymous.
- Crypto casinos will allow players to establish an account with only a username and a password; no name, address, or any other piece of information. On top of that, transactions are faster, either in the payout or replenishing an account.
- Then there is the provably fair principle that legitimate online casinos mandate. Finally, an algorithm technology checks and verifies an online casino’s fairness towards its players, so no rigged games.
- Crypto online gambling also has no borders, and players can gamble anytime, anywhere with no or minimal currency conversion fees.
- One of the most attractive advantages for high rolling online casino players is that cryptocurrency deposits and withdrawals are limited. So they can play as much as they want, while other currencies will have to go through anti-money laundering restrictions.
Online Casino Operators
The advent of cryptocurrencies as anonymous and decentralized monetary systems is perfect for online casinos. While transactions are anonymous, the movement of funds is transparent and secure. This high level of transparency and security also protects the casino from players’ fraud and inevitable disputes. Furthermore, the start-up and operating costs in creating an online crypto casino are substantially lower. They can be established in less than a month, making it a very lucrative option for investors.
The market share of cryptocurrency online casinos vis-a-vis the industry is currently at 15% and rapidly growing. Crypto online casinos are full-fledged, self-regulating establishments immune to outside interference. This compliments both online casino players and operators. As the unknown factors regarding online casinos and cryptocurrency are being met and satisfied, an increase in the number of players is expected, especially at this time of the Covid pandemic. This will ensure the expansion of the online casino industry.
Cryptocurrency and online casinos are now considered as the dynamic duo in the world’s hard-pressed economy. Leisure travel restrictions have made those two the most popular pastime available to a quarantined populace. Even as the world normalizes from the pandemic, it is still projected that online crypto casinos will continue to develop through sheer convenience and novelty.