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.
Like with most things in life, there are advantages and disadvantages associated with the usage of cryptocurrency.
Advantages and Disadvantages of Cryptocurrency Casinos
- Anonymous gaming: Crypto transactions are identified by block codes and not individual identities.
- Verifiable Transactions: The blockchain is a public ledger. Payments and withdrawals can be traced and proven without sending a confirmation of payment. The code on the blockchain is proof in itself. The transaction cannot be reversed, so once the funds reflect, you can guarantee that the transaction is complete.
- Highly secure payments: The high–level security of the blockchain and the rate at which blocks are formed makes it virtually un-hackable.
- Reduced transaction fees: Chain fees are low and there are no forex costs involved in Bitcoin transactions. The fact that there is no trusted middle-man brokering any of the transactions is a big relief to the costs of using this method.
- No or minimal taxation: Some countries have not devised plans to tax Bitcoin earnings.
- Instantaneous transfers: Bitcoin deposits and withdrawals are authorised in lightning time. Bitcoin methods do not require KYC by law, streamlining the withdrawal speed on the casino end.
- Volatile value of cryptos: Because crypto is not tied to a central reserve, the prices fluctuate massively based on popularity alone.
- Licenses: Higher risk of playing at casinos without gambling licenses and clearances
- Selection: Few cryptocurrency-only casinos currently in existence
- Technology: Need to be tech-savvy to understand the concept of cryptocurrency and how it works at online casinos.
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 when it comes to the gaming quality offered. 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 then give their clients the open–source code to the site, which allows the players to view the gaming algorithms. Players can watch as each round is randomly generated to ensure that the casino is not pulling a fast on them.
Other Popular Cryptocurrencies Accepted at Online Casinos in Canada
While Bitcoin is the mother of all cryptocurrency and is the foremost brand when it comes to online casinos, it is not the only brand
successfully used in the market. Over 1,000 registered cryptocurrencies are whittled down to a small selection of tokens used in the gambling marketplace. 4 more of the most used alternative currencies include:
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 crypto 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.
As technology ages and matures, we are slowly beginning to see how the crypto industry is developing mechanisms to overcome its frailties. Crypto seems on target to dominate the way transactions are done in the future.
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 bad press beyond the iGaming sector. But the use of blockchain will bring much-needed transparency to online casinos as a whole.