While there are fierce discussions around cryptocurrencies and online casinos, the two areas are gradually strengthening interaction. How are cryptocurrencies changing the online casino sector and what are regulators thinking about it? And about bet on bitcoin?
How bitcoin casinos work?
The first bitcoin casinos appeared in the first couple of years after the creation of the cryptocurrency. In 2012 satoshiDice started working – one of the most popular similar services that worked with bitcoin. SatoshiDice online casino worked as follows: the client sent a small amount of bitcoin to one of the casino wallets and named a number in the range from 1 to 65,536. This number (usually three digits) was considered a bet. After that, the robot named its number on the online casino server. If it turned out to be more than the player’s number, the latter received a small refund to the bitcoin address and a message about the loss. If the player’s number was more than the robot’s bet, the client received a win. The casino took a small percentage from each bet.
The anonymity of rates and the high speed of transactions on the bitcoin network have made satoshiDice popular. The first cryptocurrency investors were not opposed to playing at bitcoin casinos. According to Forbes journalist and crypto enthusiast Jon Matonis, in 2012 casino transactions accounted for over 50% of total bitcoin transactions. From May to December of the same year, online casino visitors made more than 2 million bets for a total of more than one million bitcoins. The net profit of bitcoin casinos in 2012 was $ 500,000.
A year later, the creator of the service, Eric Voorges, sold it for 126,315 bitcoins. At that time, this amount was $ 13.2 million, in terms of the current exchange rate it is more than $ 1 billion. Soon after the sale, the site received a new name, under which it still exists – MegaDice. The deal attracted the attention of law enforcement agencies: in 2014, the US Securities and Exchange Commission (SEC) accused Voorges of owning unregistered shares. He was forced to pay a fine and return the shares to the original owners.
A Bitcoin casino is a gambling site where you can gamble and receive winnings. Slots, card games, bets, lotteries and other entertainment are available – depending on the site. The main advantage is the ability to replenish the casino with bitcoins or another cryptocurrency, play on it and withdraw the winnings to your crypto wallet.
More advanced casinos are built on the blockchain, so their entire operating algorithm is completely transparent. Players can check for themselves that the game is fair and that there are no spins.
Since casinos are illegal in many countries or operate in a gray zone, bitcoin casinos may be the only way to have fun.
Why bitcoin deposits are better than fiat?
Cryptocurrencies are a fast tool for mutual settlements with a minimum commission that cannot be compared with banking. And, besides, anonymous: regulatory authorities do not yet know how to track transactions in the crypt.
Depositing and withdrawing to a bank account takes up to three business days, while the bank can block the payment if it links it to a bitcoin gambling site. But processing a transaction in cryptocurrency will take less than a minute.
Bitcoin casino main advantages
Anonymity. Perhaps you don’t want anyone to know about your gambling hobbies and income at all. Tracking your transactions will be problematic. In addition, in bitcoin casinos there is usually no verification, or it is minimal.
No commissions. There are fees for internal transfers in bitcoins, but they are so small that they are almost invisible, especially in comparison with bank fees.
Low risk of fraud. Transactions in the crypt are protected from hacking from the outside, so no one will steal your money. However, it is important to be careful when choosing a bitcoin casino – there may also be scammers among them. Remember the standard rules: read reviews, check the license, start with a small test deposit. Be careful: transactions in cryptocurrency cannot be refunded.
Convenient limits. You are practically not limited in the minimum or maximum amount of the deposit when depositing and withdrawing. Bets also start with literally a few satoshi. Many people have a small amount in their crypt that has nowhere to spend. You can try to multiply it in the casino.
Interesting promotions. In addition to the standard deposit bonuses and free spins, which are available in every casino, other interesting promotions are offered. For example, the site may have a bitcoin faucet that daily and for free gives the player a few satoshi to play.
Easy access. You can play at bitcoin casinos anywhere in the world and from almost any device as long as you have access to the Internet. They work around the clock, so the player can use the services at any time.
And in general, sometimes it’s just nice to feel like a member of a secret club, whose members have already mastered bitcoin and blockchain casinos – technologies of the future. The gambling industry will continue to develop. Those who prepare for change first will receive the maximum benefit. It doesn’t matter what you choose: Bitcoin or Litecoin, or maybe some other cryptocurrency – it is important to master this tool.
Casino or cryptocurrencies?
As of January 22nd, the MegaDice site continues to operate. According to the site, winnings do not happen very often on it. The total volume of bets on the bitcoin casino market from 2014 to 2017 amounted to more than $ 4 billion. New casinos continue to appear, they are focused not only on bitcoin, but also on other cryptocurrencies – Litecoin, XRP, Ethereum. Cryptocurrencies are in a gray legal area and are themselves a subject of controversy. Combined with online casinos, they raise even more questions. In some countries – for example, in Turkey – bitcoin casinos are already equated to electronic casinos and blocked by the decision of the regulator.
It is impossible to establish the probability of winning when investing in cryptocurrency. Another logic works here – the logic of the investor. We have previously written about the main criteria for choosing an ICO for investment. Similar rules apply to cryptocurrencies: you need to know the volume of the issued currency, its volatility, as well as the dynamics of pricing. In a blog on the Steemit portal, user Cryptoeagle advises to compile a list of cryptocurrencies that are leading in the market in terms of capitalization and volatility, invest in three of them, and revise positions once every three months. This will not allow you to win at roulette, but it will give you the opportunity to make money on rate fluctuations, the expert believes.