Cryptocurrency Casinos: Are They the Future?
Cryptocurrency is one of the buzzwords of our time. These valuable digital assets are viewed as an investment tool by traders. They are fast becoming a medium of exchange as a decentralized currency in Canada and beyond too. Each transaction is secured by cryptography to ensure transparent, hack-proof payment process.
In recent years, the value of the leading cryptocurrencies has soared. In 2017, Bitcoin, the first decentralized cryptocurrency ever, experienced a surge in value. It grew more than 1000% to become worth over $14,500. There were confident predictions of further growth in 2018. Yet financial experts have since ripped into Bitcoin, questioning its long-term viability as a payment option due to its volatility.
Cryptocurrencies are facing growing restrictions from governments, including the Chinese state. However, digital currencies have helped give rise to a new era of online gambling. Super-fast transactions, no chargebacks and provably fair gameplay for all have taken iGaming to a new level.
The most popular crypto payment method
Bitcoin is the most popular crypto payment method at online casinos. Its transparency and security are unparalleled, with all transactions completed using blockchain technology. Each transaction is traceable. There’s no disclosure of users’ identities, making it the ideal deposit method for online bettors.
Online casinos that accept Bitcoin
Bitcoin also works well for the casinos too. Bitcoin casinos in Canada can send and receive cryptocurrencies without third parties. A decentralized payment system also makes expensive transaction fees a thing of the past. While some Canadian casinos accept a mix of fiat currencies and cryptos, a growing number focus on cryptos only.
These Bitcoin casinos have one key edge over other iGaming brands. They can offer provably fair gaming and total transparency over the outcome of each card deal and spin of the roulette wheel. The casinos use the same blockchain technology as Bitcoin. They create crypto algorithms for their games, making them impossible to decode and tamper with.
Other popular cryptocurrencies accepted at online casinos in Canada
Ethereum is much newer to the crypto scene than Bitcoin. However, many online casinos are embracing it as a payment method. Curacao licensed its first Ethereum casino at the turn of 2018. Ethereum has one benefit over Bitcoin: smart contracts. These can publicly verify a casino game’s historical data and program the return of Ethereum winnings to a player’s crypto wallet. This earns Bitcoin casinos in Canada great trust and credibility. The Ethereum blockchain is already being explored by iGaming startup EthBet.
LiteCoin was founded by a former Google employee, Charles Lee. Its transactions are also completed on the public blockchain ledger. LiteCoin is designed with an accelerated block generator. This allows it to handle a larger number of transactions than Bitcoin in the same timeframe.
Bitcoin Cash does not suffer from a backlog of transactions like Bitcoin. Bitcoin has a 1MB block size limit, but Bitcoin Cash is suitable for “zero-confirmation” transactions. Bitcoin Cash deposits are transferred instantly to casinos. Transaction fees are generally a fraction of the cost of Bitcoin deposits too.
Ripple offers exceptionally-low transaction fees, immediate payments and private payment data. You can send funds online using Ripple even if you don’t use a bank. This payment system and its digital currency are quite new to the iGaming sector.
The pros and cons of using cryptocurrencies for iGaming
- Anonymous gaming
- Highly secure payments
- Reduced transaction fees
- No or minimal taxation
- Instantaneous transfers
- Volatile value of cryptos
- Higher risk of playing at casinos without gambling licenses and clearances
- Few cryptocurrency-only casinos currently in existence
- Need to be tech-savvy
The latest cryptocurrency and iGaming trends in Canada
In Canada and beyond, the casino industry is eager to integrate blockchain technology. Creating fair and functional online gambling platforms that are secure and anonymous are a high priority.
Smart contracts will also help gaming for years to come, with casino games and their data locked into a smart contract. This will ensure nobody can rig the results of the games in any way. Cryptocurrencies may get a bad press beyond the iGaming sector. But the use of blockchain will bring much-needed transparency to online casinos as a whole.