You’ve probably heard about bitcoin before, and it’s one of the most popular forms of currency that’s being used online. Back then, bitcoin was just some obscure cryptocurrency that not a lot of people knew, but as time went by, it skyrocketed in popularity. Other than the traditional means of paying for commodities and other services online, Bitcoin has also been used for, well, Bitcoin casinos.
But first, we have to look into how bitcoin casinos work. How do these businesses operate? What made them rise in popularity? Are they legitimate businesses? No worries, we’ve got all the answers that you need.
Rise To Popularity
What attracts people to the internet is the fact that you can remain anonymous without having to divulge any personal information. However, when money becomes involved in almost any online business that you go to, you’ll need to give out your personal information when you’re registering or even just buying something. One effective way of circumnavigating the need to give out your information to online casinos is by using the Bitcoin currency. Since this cryptocurrency is stored on the web, there is no need to ask for sensitive information from the user for security reasons.
While there are online casinos that transact using the traditional way of hooking up your credit or debit card to your account, there are bitcoin casinos that are designed purely with Bitcoin transactions. Bitcoin casino software usually runs the game without any human interaction. However, there is also some software that does need a human dealer.
There are several laws in the United States that can make operating in American soil a bit ‘iffy’ and this might make some customers a bit skeptical. However, most online gaming sites are able to circumvent this law by hosting their sites off-shore. Since these sites are not within the bounds of the authorities’ control, many bitcoin casinos are able to formulate their own laws and regulations for their site.
There’s a preconceived notion that online casinos tend to be vulnerable to hacking incidents and personal information getting leaked out. Contrary to what most people believe, bitcoin casinos and online casinos that will allow its users to be anonymous are more secure than any other gaming site out there. After all, if there is no personal information being used in that site, then no information will be leaked.
The fact that you can be anonymous and that you won’t have to worry about anybody breathing down your back while you play makes this one of the best ways of making money.
How Do Bitcoin Casinos Operate?
Since we are discussing a business that relies on a steady stream of information being sent back and forth, bitcoin casinos will have to rely on software. Programming and algorithms are just some of the cornerstones of any online gaming business since this will ultimately dictate whether a customer will win or lose in a game. In some cases, bitcoin casinos will also let purchased versions and mobile versions of the game on different devices which can lead to a more unique experience.
Even though some users are a bit skeptical of how online casinos work, bitcoin casinos will build trust with their customers by disclosing how their software is programmed and how they operate.
Bets that are taken are usually already within the user’s stored funds in the site. In most cases, users will place an opening ‘bet’ through their wallet which can either lose or profit. One of the highlights for bitcoin casinos is the ability to offer ‘Bitcoin jackpots’, where users will be able to win as much as 500 BTC.
When a game is done, all the profits go the user’s wallet that’s on the site. Once it’s in their wallet, the user can opt to transfer it to their personal wallet. However, users need to be aware that some casinos will have a withdrawal limit to prevent users from cashing out when they win big.
If you’re looking for a comprehensive review of how a certain bitcoin casino works, you can look at our Betcoin review.
Are Bitcoin Casinos Legal?
If you’re familiar with how the federal law works in regards to gambling in the United States, running a bitcoin casino on American soil is not allowed. Most of the well-known and legally accredited bitcoin casinos that cater to US citizens are hosted outside the United States. Additionally, since these bitcoin casinos use bitcoin and not a traditional currency, almost anyone around the world will be able to transact and play the games on the site as long as they have bitcoins.
At this point, we can confidently say that there are a lot of legitimate bitcoin casinos in the industry. However, it never hurts to do your own research first; one good way of telling that a bitcoin casino is in good standing is the user reviews about the site.
How Do Bitcoin Casinos Affect Bitcoin Markets?
Well, as of this present moment, there’s no clear correlation between how bitcoin casinos influence the cryptocurrency market. But theoretically, businesses that use a particular currency are able to help boost the traffic and activity for that certain currency. In this case, bitcoin casinos are able to help increase the amount of activity in bitcoin hubs.
According to some sources, a single bitcoin casino will be able to boost the amount of traffic on bitcoin transactions five-fold from the usual daily activity. This indicates that both the bitcoin market and the online casino industry are very well-connected.
It’s quite clear that bitcoin casinos are getting more and more prevalent as the years go by. With a steady growth rate, it’s bound to have a heavy influence in the bitcoin market in the coming months to years.
Bitcoin gambling is definitely a whole different beast than your traditional casino. Compared to other online gaming sites that use traditional currencies, bitcoin casinos tend to be more responsive and can make payment methods easier. On top of all these, the option to be anonymous gives bitcoin casinos an edge since you won’t need to ever input your personal information in sites.
We hope this will be able to give you an in-depth look at how bitcoin casinos work.