Cryptocurrencies have had a massive breakthrough in many industries over the past decade. Online casinos have embraced this new currency trend and aptly coined it crypto gaming. Let’s take a look at what cryptocurrency is and how gamers can use it when playing online casino games.
Basics of cryptocurrency
With any new technology, people are often skeptical until they know how it works. Cryptocurrency is no exception. So what is cryptocurrency? In a nutshell, cryptocurrency is a digital form of money. And just like “real” money, there are different currencies that fall under the broad classification of cryptocurrency. Bitcoin is arguably the best-known, but there are others too, like Ethereum, Litecoin and even Dogecoin. Cryptocurrencies are based on very complex technology, but here’s a simple overview of how they work.
Understanding the basics of blockchain technology
To understand cryptocurrencies, you need to be familiar with blockchain technology. At its most basic level, blockchain refers to digital information that is stored in a public database. The so-called “blocks” are made up of transaction information such as the date, time, and dollar amount. The blocks store important information about who is participating in the transactions. Each block stores a unique code called a ‘’hash’’ – a cryptographic code created by special algorithms – that allows users to tell blocks apart from one another.
A cryptocurrency, like Bitcoin, requires both the sender and the receiver to sign off on payments to create a kind of digital ‘signature’. This transaction is documented in a public ledger, which ensures accountability and transparency.
A central authority such as a bank or government regulates and verifies “real money”, but cryptocurrency transactions are verified by a network of computers. This is what is meant when people say that blockchain is ‘’decentralized’’. For many people, this has been a welcoming development, as it puts the money generated in the hands of the individual, and makes it easier to send and receive money over the internet without middlemen.
Cryptocurrency is a legitimate currency in many countries, and you can use it to pay for anything from food to cars. You can also buy cryptocurrency with ‘’real’’ money on a number of cryptocurrency exchanges.
Cryptocurrency is pseudonymous
Although cryptocurrency is not entirely anonymous, the components such as addresses, private and public keys, and transactions are read in text strings that do not directly link to anyone’s personal identity. Instead, cryptocurrency is pseudonymous which means that your cryptocurrency address is recorded and not your personal identity. However, it’s important to note that, in many cases, cryptocurrency addresses can be linked to a person’s identity. For example, if you transfer Bitcoins to an online retailer such as Amazon, you’re also providing your customer identity information which can be used to link your blockchain pseudonym to that identity.
On the other hand, this degree of anonymity allows for the dark side of cryptocurrency and blockchains to flourish. The privacy factor can fuel crime on the internet as criminals can avoid identification by law enforcement.
Here are some of the ways that the degree of cryptocurrency anonymity can aid criminal behavior:
- The decentralized system allows for secure cross-border payments without any investigation by the government or a bank.
- On the darkweb, cryptocurrency can help with the purchase and selling of illegal items and services, including drugs, weapons, and passports.
- This degree of anonymity also allows for successful money laundering.
- People can use cryptocurrency for tax evasion. Some people claim that they will knowingly not report capital gains or losses from cryptocurrency.
Fully optimized for the online world
Yes, payment methods such as credit and debit cards are fast, but cryptocurrency transactions are much faster. When you’re playing online casino games, cryptocurrencies are optimized for instant deposits and withdrawals.
Why should online casinos implement crypto gambling?
At an online casino, real money exchanges hands regularly – deposits are made and winnings are withdrawn. Cryptocurrency’s ability to facilitate fast transactions has made it a natural choice as a method of payment for online games.
For the players, there are added incentives to playing online games with cryptocurrency. This currency has a high security threshold and is not as easy to hack compared to a normal bank account.
Many people in the gaming community, both developers and players, hold cryptocurrency. As a result, crypto gaming will continue to find an outlet and a market. Cryptocurrencies and game development will continue to evolve, and as more games adopt blockchain technology, we will most likely see blockchain gaming increase in popularity.
Exciting crypto gambling features
Blockchain-based games, like CryptoKitties and CoinDogs, create a recreational experience that is supported by blockchain technology. Blockchain gaming is mainly based on transactions of assets in the game. For example, gamers are charged an entrance fee to join a personally built environment. The game is owned by the players and not a company.
Separate your bankroll and other finances
Bankroll management is an essential part of gambling responsibly. The best practice is to keep your bankroll separate from your other finances. If you play casino games online using cryptocurrency exclusively, you reduce the risk of dipping into your personal finances to top up your bankroll. Your crypto wallet will make it easy to tell when you’re at the end of your bankroll and minimize the chance of you going over-budget.
Online casino welcome bonuses
A growing number of online casinos welcome cryptocurrency, and you can claim free bonus cash or free spins with these currencies too. Simply deposit a cryptocurrency supported by the casino, and receive your welcome bonus so you can get into some online casino game action straight away. Remember that it’s important to research an online casino before signing up. Even more important to remember is that with cryptocurrency, once you’ve paid for something, the money is gone. Don’t expect refunds if the online casino is not legitimate or licensed.
Crypto gambling in the USA
It’s clear that cryptocurrency and online casinos have the potential to benefit from closer integration. It seems that many big online casinos will eventually embrace cryptocurrency.
Cryptocurrency continues to gain mainstream approval, and there is pressure on governments to embrace it. The fact that it is not tied to a particular country, or their currency, means that it is beyond the scope of existing taxing frameworks. If, or when, governments are able to tax cryptocurrency, you will most likely find it added to the legislation. At that point, it is almost guaranteed to be a payment option on all gaming platforms.
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