How Bitcoin Can Be Used In Gambling
Bitcoin is a digital currency or cryptocurrency, that is created and stored electronically. It is decentralised, meaning that is controlled by its users rather than any bank or central authority. There are no physical bitcoins, only balances kept on a public ledger in the cloud- these balances and transactions are verified by a massive amount of computing power.
How it Works
Bitcoin transactions are recorded in a public ledger called the ‘blockchain’, which contains every Bitcoin transaction ever processed. This process is managed by ‘miners’ whose job it is to verify transactions and update balances.
A bitcoin wallet is a piece of software which acts a little bit like a bank account and holds your bitcoin. You buy bitcoin, put it in the wallet and then transfer across to casinos who accept bitcoin payments. You buy using a broker or an exchange, these are companies that sell bitcoin in exchange for the money you have.
The lower processing costs make Bitcoin an attractive proposition to online businesses like betting and casino sites, and the number of Bitcoin-only casino sites is growing. Deposits and withdrawals cost nothing, giving them more funds for promotions and bonuses and enabling them to potentially offer more generous payouts. Depositing and withdrawing at a casino site using Bitcoin is simple and not dissimilar to using an e-Wallet service like PayPal or Skrill – all they need is the wallet information and the amount you want to transfer.
Purchasing Bitcoin for Online Gambling
There are a number of Bitcoin exchanges operating in the UK as well as some abroad that are available to UK customers. These allow you to buy bitcoin. The other option is a peer-to-peer service where individuals trade Bitcoin with each other, and there are also several of these in the UK.
Bitcoin is becoming popular as an alternative deposit method at gambling sites like casinos and betting shops. It is another way to add funds to your account balance and you can make bitcoin deposits in 2 ways:
- Create a Bitcoin Wallet and make a direct deposit
- Deposit your bitcoin into an E-wallet like Skrill, and then use it to deposit at a gambling site
Bitcoin is still waiting to go fully mainstream so there are only so many websites that directly accept bitcoin. Therefore, option 2 is a work-around for depositing at casinos that do not directly accept bitcoin.
Reasons to Use Bitcoin:
Bitcoin has become popular among online gambling platforms and is a legal and legitimate deposit method. Here are some reasons why people like it.
- Fast: bitcoin payments are very fast with most transactions confirmed within minutes
- Save money: transaction fees are smaller than the fees associated with bank transfers or credit card payments
- Digital: A digital currency for the online world of gambling. This is cash for the digital age and bitcoin removes the need for sluggish payment processors
Because Bitcoin is decentralised and can be anonymous, there are concerns about its potential use for criminal activities. It is still in its infancy and is not recognised as legal currency in most countries. As a result, there is no standard international regulation around Bitcoin.
Bitcoin casino and betting sites in the UK still have to be licensed by the UK Gambling Commission, and they should also carry out regular independent tests to confirm that their random number generators are fair.