Changing landscape: Cryptocurrency may replace fiat money in online casinos
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For decades, fiat money in the form of banknotes and coins has been the dominant medium of exchange, but history consistently reveals that money adapts to meet the changing demands of society. The emergence of cryptocurrency and blockchain technology over the past few years proves this phenomenon.
The evolution of money heavily affects the gambling industry as well. Traditional casino players have relied on cash in exchange for chips for decades, but this, too, has changed. Now, gamblers are shifting toward digital transactions to play casinos on their devices.
Recently, players have seen as cryptocurrencies entering the online casino scene. A rising population of gamblers prefers crypto casinos as they cut concerns about foreign currency conversions and help create a safer gambling experience. In fact, as of 2021, around 80% of iGaming businesses have embraced crypto payments.
However, the question remains: Can cryptocurrencies replace fiat money in online casinos?
At its core, cryptocurrency enables virtual transactions without requiring bank verification. Unlike fiat currencies, cryptocurrencies operate independently of government bodies and central banks. Crypto owners maintain control over their wallets without any intervention from the government, whereas authorities can freeze fiat accounts for various reasons.
Since its conception in 2009, various cryptocurrencies have been developed by the crypto industry and adopted by its community. A leading example is Bitcoin (BTC), the pioneering cryptocurrency and one of the most commonly recognised currencies for peer-to-peer transactions. Ether (ETH) is the second most popular, introducing the concept of programmable blockchain and enabling developers to build decentralised applications (dApps).
Another example is Ripple (XRP), which focuses on real-time gross settlement systems and cross-border payments as it facilitates secure and rapid transactions between various fiat currencies.
Having revolutionised the industry, cryptocurrency betting introduces many advantages traditional casinos lack. These advantages include transaction speed, security and fairness.
Cryptocurrencies use blockchain, a decentralised system, for storing and transferring value. This results in a quicker transaction that may take one second to about 10 minutes to process.
In contrast, fiat currency transactions need traditional financial institutions or credit cards. All these are within the influence of regulating authorities. This conventional technique leads to varying processing times.
Crypto casino transactions are faster than traditional casinos, which often see delayed payments. Furthermore, winnings will not be influenced by holding periods and procedures.
Cryptocurrency wallets offer greater security than bank accounts or card payments. The implementation of SSL encryption also ensures that data remains shielded from unauthorised entry. Hackers will face more challenges infiltrating cryptocurrency gaming platforms compared to traditional casinos.
Moreover, cryptocurrencies offer users complete anonymity. There is no need to share personal information when conducting transactions with cryptocurrencies. This advantage protects users against malicious third-party access.
Crypto casinos ensure fairness in their games by utilising provable algorithms. The algorithms in place provide a way to verify that the outcomes of the games are not being manipulated. The technology allows players and the casino to not rely on more auditing services.
Many Bitcoin casinos implement minimal house edges, ranging from 0.5% to 2%. House edge refers to the casino’s innate advantage over players.
Players have better chances to win if the house edge is on the lower side. In contrast, conventional betting platforms lack low house edges. This leads to higher house advantages, typically falling between 3% to 15% depending on the games and the casino.
Furthermore, crypto casinos are free of manipulation and alteration. This advantage allows players to verify and check the accuracy of each gamble’s results. As a result, players have the opportunity to confirm that their bets are genuine and have not been tampered with.
