Bitcoin and other cryptocurrencies are becoming more and more popular. This trend, in particular, has developed in the iGaming space, where the use of new technologies is a huge part of the industry. In this blog article, we decided to look at the advantages and disadvantages of integrating bitcoin currency as a payment method for online casinos.
Why operators should accept cryptocurrencies
Since Bitcoin operates within a decentralized network, there is accordingly no authority that would seek benefits in the form of transaction fees. The only possible transaction fee in the framework of bitcoin payments is sent to bitcoin miners in order to assure the completion of the operation. The amount of such a tax is sometimes $ 0.04, which is incomparable with the transaction fees of banks and other financial institutions. There is no doubt that operators will quickly notice a serious financial advantage for players who do not want to lose their money on each transaction.
Anonymity and privacy
While traditional financial institutions require a huge amount of personal data, bitcoin transactions use a much smaller amount of personal information - only the address of the bitcoin wallet, as well as public and private keys. Note that bitcoin networks are decentralized and operate on an equal footing. As players pay more and more attention to confidentiality and anonymity, the use of bitcoin currency for payments is designed to increase the attractiveness of the platform.
Due to its decentralized nature, the security of bitcoin payments has a significant advantage over traditional fiat currency transactions. Traditional financial institutions manage a single registry containing transaction information for all customers, with each bitcoin having a series of open and decentralized registries. Consequently, any attempt to fake or modify the transaction history will be rejected, thereby making individual transactions extremely safe. Given the fact that sometimes the security of traditional payments is compromised, bitcoin transactions provide operators with a chance to gain trust and respect from players through the new payment method.
Transaction Confirmation Time
Another advantage is that bitcoin transactions can be processed much faster than those that include traditional financial institutions. Deposits and withdrawals made in bitcoin almost always happen immediately. While fiat money transactions can take several days, bitcoin transactions can take several hours or even minutes. The faster players make deposits, the faster they start their game - a positive aspect for any online casino operator.
In some countries, banks and other financial institutions are prohibited from conducting transactions regarding gambling activities. Bitcoin also allows players to make deposits and withdraw funds regardless of jurisdiction. This means that players who are currently unable to make deposits will have this opportunity if the casino accepts bitcoin payments. Thus, operators can offer their services to a wider segment of players.
Disadvantages of accepting payments in cryptocurrency
A significant drawback is the fact that Bitcoin is a very volatile currency. Players may find themselves in a serious imbalance between the amount of fiat money that was originally converted to bitcoin and the amount that the players ultimately withdrew. Perhaps some operators may face the fact that players will give their preference to more stable currencies.
Several well-known security breaches associated with the Bitcoin system have already occurred on the cryptocurrency exchange market. So, hackers stole millions of dollars in bitcoin currency, and at the same time a huge amount of personal data. It is important to note that these security issues are hardly different from the problems that are associated with traditional payment methods. No matter how fast Bitcoin is, safer and more anonymous than fiat money, it is still not perfect. And therefore, if any problems arise, the operators may have to deal with extremely unrealistic expectations from the players.
Since bitcoin, as well as all networks and exchange systems that work with this cryptocurrency, are a relatively new phenomenon in the industry, it is impossible to predict what changes and events will occur in this direction. Therefore, operators to some extent run the risk of encountering questions that no one has answered yet.