How Does Bitcoin Casino Function?
The increasing popularity of bitcoin, as the digital currency, contributed to the flourishing of new economy type along with traditional currency economy, regulated by central banks.
Bitcoin transactions keep gaining their traction, thus, helping to create space for gambling, lotteries and gaming at online casinos, dealing with bitcoin.
What is bitcoin casino?
Bitcoin is the most popular digital currency, known also as cryptocurrency, in the world. Some online casinos accept exclusively bitcoin, while other offer it as alternative to the traditional currencies.
Such casinos are growing in number and operating across the globe, however, they should comply with local legislations. Bitcoin transactions allow casino operators to offer clients many options for spending their funds:
- casino games
- gambling games
- sports betting
- online lotteries
- spread betting
There is the list of several most popular bitcoin casinos:
How does bitcoin casino work?
The software is the core of any online gambling project, the same concerns bitcoin casinos. The majority of recognisible gambling platforms with a large user base operates on proprietary software. Other websites purchase or rent their software, being able to customize and add unique features themselves.
Software conducts the game, so that there is minimal human intervention. Over the course of games that require certain number of players, the software functions as dealer. Given the digital concept of business, bitcoin casino operators struggle to convince players of integrity of their activities. Mainly, gambling companies try to win their customers trust by revealing algorithm working principles. Other platforms succeed in building their reputation with good recommendations or unique content. One of the best bitcoin gambling platforms can be found here.
Poker is the most popular option across the bitcoin casino industry. However, gambling websites offer a wide spectrum of entertainment, lotteries and variants of traditional games. Besides, new products are being introduced regularly. In our previous post you can find more information on How to choose your first bitcoin casino?
Why bitcoin casinos are becoming widespread?
For casino users anonymity is the main advantage. Any information on transactions, and even the cryptocurrency founder’s identity, who is known under the pseudonym Satoshi Nakamoto, remains confidential.
Casino Nyheter 2018. The majority of websites offer commission-free transactions and do not limit their number, while casinos, dealing with traditional currencies, do not practice that.
Digital nature of this online business gives global access to a large number of players continuously.
Given that online games are beyond the authority’s control, rules in many of them have been amended. Such actions are not permitted in legal online casinos with traditional currencies, thus, it is the main reason for an increasing popularity of bitcoin casinos.
Bitcoin casinos – under the spotlight?
Traditional online casinos fall under the regulation. Individual players, dealers and operators can be traced and identified through their regular currency payments. However, in the case of bitcoin, it is not an issue.
Bitcoin transactions are exclusively digital, so it is not easy to check them out. For example, who guarantees that cards were shuffled and dealt fairly within the online card game? Besides, if player’s anonymity is maintained just because he pays with digital currency, it questions the integrity of the business.
A number of bitcoin casinos request minimum information form their customers, often it is limited to e-mail address and login. There are no age, location or other detail verification procedures.
Gambling is prohibited in many countries, and to regulate and control bitcoin casinos at the global level is even more difficult.
All of the above-mentioned, puts authorities in the hot seat, since new economy is spreading rapidly. Although digital currencies have many advantages, in the context of casinos they create numerous challenges.
Legal aspects of bitcoin casinos
Due to the nature of bitcoin transactions and reasons mentioned in this article, bitcoin casinos are illegal in US. Legitimate gambling companies are located outside America. Gamblers from around the world, including a large American player base, anonymously visit these websites. Consequently, authorities find it difficult to track, monitor and make bitcoin transactions legal. Lack of public information about such anonymous business significantly complicates data collection, required for the implementation of laws.
Casino impact on transaction process
Given the lack of information, it is difficult to estimate the impact of bitcoin casinos on the cryptocurrency itself. One article reported that – the launch of gaming website SatoshiDice in April 2012 increased the total number of daily transactions almost five times. It sheds light on how anonymous world depends on gambling.
In reality, bitcoin casino receive a large number of transactions on regular basis, thus, increasing use of bitcoins.
Regardless of the transaction type – traditional or digital, gambling has always been a subject of discussion in terms of ethics. Moreover, the complex transaction process makes bitcoin casino activities even more confusing. Although it is very easy to lose one’s head, especially, when it comes to easy money, users should be aware of legal aspects, difficulties and risks.