Bitcoin casinos existed for a couple years in this early form. No one really paid a lot of attention to them, casino software developers didn’t make any moves to change things, and some even (rather ignorantly) believed that it would just be a fad.
Then cryptocurrencies hit the headlines, the value skyrocketed and everyone wanted a piece. As soon as retailers began accepting them, casino software developers took notice and the second wave of cryptocurrency gambling happened.
This wave led to the creation of online casinos such as SatoshiDice and BitStarz, where players can use Bitcoin and other cryptocurrencies as well as “regular” payment methods.
Bitcoin isn’t the only major cryptocurrency out there these days and while it does dominate the digital currency gambling sector, some casinos also facilitate the use of currencies.
There are a few reasons why cryptocurrencies are better than other commonly used payment systems, as well as one major misconception that puts many gamblers off.
They are Fast
Web wallets became so popular so quickly because they allowed casinos to process deposits and withdrawals quickly. They turned the average 4 to 5 day processing time into just a day or 2 and in some cases it takes only a few hours.
With cryptocurrencies, casinos have something that is even quicker. It takes minutes, not hours, and it also drastically reduces the pending time, which means the average casino should be able to process all withdrawals within a matter of hours.
They are Secure
Cryptocurrencies are very secure. There is literally nothing that a hacker can do, even if they do manage to get hold of your information. They can steal your wallet ID, but this will only allow them to send you money, not to take money from you.
The only threat comes from the wallet itself, which is stored locally on your hard-drive. If you lose this, you lose your money, which is bad; but there is no threat of losing it when you make a deposit or a withdrawal online, and that’s good.
They are Anonymous
Cryptocurrencies is completely anonymous—a benefit that no other payment service can offer. If you send a wire transfer or a check, the recipient has your name, address and account details; if you send a web wallet payment they have your address, name and email. If you send a payment using cryptocurrencies, they only have your wallet ID, which is a long string of numbers that cannot be connected to an individual.
They are Tailor-made
A lot of currencies currently used by online casinos were created in another age for another purpose. A huge number of online casinos still use checks and wire transfers, even though they are all but obsolete in the modern age, and it’s a similar story with credit cards.
They were created to facilitate quick and secure payments, and their flaws are evident in the high fees they charge and the fact that most casinos won’t let you withdraw money to them.
It is a different story with PayPal, Neteller and Skrill, web wallets designed for online use, but even these have their flaws. They were created to facilitate online shopping, not gambling, and they have higher fees and more problems than you will find when using cryptocurrencies.
Bitcoin was created with online gambling and other secure online payments in mind, and this can be seen in every deposit and withdrawal.
These currencies have changed the way some people gamble online, and in the future it will be an option open to many more. It may also force casinos and payment methods to change.