The gambling industry continues to change each year to accommodate their demographic better. These changes include the rise of online casinos and many payment options like cryptocurrency.
Brick-and-mortar and online casinos regularly use payment methods like debit and credit cards. However, online casinos now also present crypto as an available option for payment because of its differing characteristics from traditional or fiat money.
In this opportunity, we’d like to explain how cryptocurrency changes how casinos operate. As online casinos continue to incorporate crypto as a payment method, it’s only natural to understand how crypto slowly overtakes fiat money as a popular payment method in these casinos.
Fiat Money in Crypto
Cryptocurrency brings something new to the table, designed for transactions without the intervention of intermediaries. This means institutions such as central banks aren’t involved in cryptocurrency transactions.
Compared to fiat money, cryptocurrency is resistant to inflation. In this regard, central banks can print more money to ensure enough money is circulating. While it works in reality and theory, there have been cases where fiat money becomes worthless due to inflation.
On the other hand, Bitcoin, one of the most famous examples of cryptocurrencies, has a limited number of 21 million units. Unlike fiat money, the value of each Bitcoin is fixed. Although the conversion rate from fiat money to Bitcoin can fluctuate, Bitcoin’s intrinsic value stays the same.
The lack of central governing authorities means that everyone can buy cryptocurrencies. Crypto wallets are the primary platforms for commencing transactions by using crypto.
Choosing another type of currency and considering its conversion rate doesn’t exist in these wallets. People only need to have cryptocurrency to use for transactions. After settling a transaction, both parties can immediately send or receive the crypto to finish the deal.
Problems of fiat Money Transactions
Brick-and-mortar and online casinos have used fiat money for as long as they have existed. Players can use cash or other platforms, such as online bank accounts and debit or credit cards, to play. Yet, there are some notable issues.
Players often have to pay transfer fees if they use bank accounts in online casinos. It becomes worse if the players come from countries different from the casinos’ home countries.
In addition to that, international payment transfer fees can also spike up to unrealistic levels. It’s worth noting, however, that fiat money is regulated by central bank authorities, which can result in its fluctuating conversion rate.
These issues may become bothersome when players want to collect rewards after winning several casino games.
Beneficial Changes by Crypto
Online casinos see Bitcoin as the next step in inviting more players to join. Using cryptocurrency as a payment method is sensible, as people remain curious about its benefits.
To start, we’ve mentioned how crypto transactions don’t involve intermediaries. With this benefit, online casinos can save themselves from expensive transaction fees when transferring money to winning players. Money that could’ve been wasted on transaction fees can be used for financing bonuses and promotions.
Another change in online casinos due to crypto is the improved security levels. Utilizing crypto as a transaction currency prevents potential loss of cash. Stealing crypto isn’t as easy as stealing cash, which makes criminals have a hard time stealing crypto. The crypto is stored on the blockchain, which is nearly impossible to hack.
Anonymity is also a common benefit Bitcoin has over fiat money. Data confidentiality is a sensitive issue in the gambling industry because saved data may contain information like bank accounts.
Compared to fiat money, crypto transactions in online casinos don’t oblige people to reveal personal information. Anti-money laundering measures are also present to ensure security and trustworthiness.
Conclusion
In the end, cryptocurrency continues to be popular in the gambling industry because of its benefits. Cryptocurrency can address common problems people usually face when transacting with fiat money.
Although fiat money is still perfectly usable, online casinos will continue to include Bitcoin as a payment option because of its undeniable benefits. Visit https://sportsbet.io/blog/casino to find legitimate online casino games with a Bitcoin payment option.