Its been more than a decade since the introduction of Bitcoin as a payment method. Initially the subject of ridicule, Bitcoin has emerged as a powerful alternative to fiat currency, and it’s gaining acceptance as a medium of exchange by major corporations, including online gambling casinos.
But the rise of Bitcoin has not always been a smooth ride in the gambling industry, and there have been many bumps on the road to Decentralized Finance (DeFi) dominance. This article will discuss some pros and cons of betting with cryptocurrency that may help improve your return on investment.
Pros for Crypto Betting
Excellent Privacy for Identity Protection — One of the most discussed advantages of Bitcoin betting is the level of privacy it provides for players and the casino. No third parties are involved in peer-to-peer transactions between you and the casino; consequently, no private information is exchanged.
Fast Transaction Processing — Digital cryptocurrency transactions are super-fast compared to conventional fiat payment methods. Since there are no middlemen like banks and payment processors, sums are directly transferred from you to the casino. And sites like Cloudbet claim that payments take mere minutes to complete, and you can begin playing almost immediately.
Greater Access for U.S. Gamblers — Despite the gigantic size of the U.S. gaming market, access to online gambling is limited for American players compared to other parts of the world. But most Bitcoin casinos function outside U.S. territorial laws, and the privacy aspect of cryptocurrency makes it much easier for American players to access gaming sites.
Low or No Processing Fees — Every time you use a bank to perform financial transactions, fees are involved. That’s how they can afford those huge marble and stone office towers and bank branches. It’s a wonder they don’t charge just for walking on their carpet! Most crypto casinos don’t charge any fees, and for those that do, the costs are minimal.
Lucrative Promotions and Bonuses — Bitcoin casinos offer some of the gambling industry’s most generous promotions and bonuses. Some casinos will match your new player Bitcoin deposit up to as many as five coins. With the price of Bitcoin skyrocketing, we’re not sure how long such lucrative benefits will last.
Cons for Crypto Betting
Cryptocurrency Volatility — the coin volatility is legendary. The price of this cryptocurrency can swing wildly in either direction in minutes, if not seconds. Depending on when you convert your cryptocurrency into fiat money, you can receive more or less than your initial deposit depending on the price of crypto at the time of conversion.
Many gamblers use price market swings to their advantage by only converting their cryptocurrency when the market price is high and banking it when it is low.
Huge Learning Curve — Even though cryptocurrency has been around for more than a decade, it’s still such a recent technology that players and crypto casinos must spend considerable time understanding what it is and how it’s used. In addition, all parties must understand and implement the appropriate security measures to ensure safe betting.
Little or No Recourse — Despite the best intentions, problems occur when betting on crypto casino platforms. You have very little recourse if you’re playing on an offshore website, and it gets hacked, crashes, or simply goes away due to fraud. Unlike licensed online and physical casinos, when you operate outside the benefit of the laws where you live, the chances of you recovering even a fraction of your deposit are slim to none.
Summing It Up
There are advantages and disadvantages to cryptocurrency when gambling. Players must decide if the benefits outweigh the disadvantages and if it’s worth taking the risk associated with gambling on a particular cryptocurrency website.
Limiting your play to well-known and well-trusted casino websites can minimize any risk to your account. Also, you can reduce risk by maintaining low balances and only transferring coins as needed instead of in one large deposit.