Cryptocurrency has gatecrashed the world of traditional finance over the last 20 years. In the last decade, it has gone from the shadowy back corners of the dark web to institutions such as BlackRock, acquiring billions of dollars worth. It’s a mind-blowing journey, especially for those early investors who were happy to see BTC obtain parity with the dollar in 2011.
But how does it work? Where does it obtain and retain its actual value? Why are online gambling companies spending increasing amounts of time and resources facilitating these payments for their customers, and how is it changing the world of online gambling? Let’s take a look, shall we?
Crypto in a nutshell
There are many types of cryptocurrency, but the most prominent ones by far are Bitcoin and Ethereum. Bitcoin is the biggest asset by market cap, has the most visibility, and is the most accepted within traditional financial circles, although Ethereum is not far behind. All cryptocurrencies rely on the blockchain, a sophisticated web of cryptography that ensures each transaction is locked and recorded and cannot be amended or altered.
The mechanics of the blockchain are the fabric of what makes cryptocurrency such a promising asset classic. Unlike traditional finance, which requires centralized security and oversight from a financial institution, all crypto transactions are monitored and validated on the blockchain, allowing you to send money directly to the person or, in this case, the casino where you want to deposit your money.
A number of sites now allow crypto users to gamble with their Bitcoin or other altcoins, and playcasino.co.za has compiled a list of these sites as well as a host of other sites ranked by the quality of their bonuses and a whole host of other criteria, such as the quality of welcome bonuses, user ratings etc.
A genuine alternative to traditional casinos?
Instead of having to go through extensive KYC or deal with red tape and explaining to your bank what your transactions are for, cryptocurrency casinos are designed for you to connect your wallet and begin playing immediately.
Of course, they have some element of KYC in place for the anti-money laundering protocol, but this is the primary reason digital assets have transformed the space.
By offering a new avenue to pay – one that differs significantly from those used in traditional casinos – the more conventional operators who have been in the space for a couple of decades and have had it very much their way since the mid-2000s have now had to rethink their strategy to accommodate this changing public perception of cryptocurrency. Over the last 12 months, the Bitcoin price has moved in a positive direction, but over the last three months, during which the price has gone parabolic, and as this brings it more to the attention of retail traders, casinos are more than willing to match the demand.
Consumer power and enhanced security
As with any business that deals directly with customer transactions and facilitates withdrawals and deposits, the casino sector’s foundation mainly stems from customer appetite and the quality of its payment systems.
We’ve already addressed the growing demand for Bitcoin based on the new all-time high price action, but cryptocurrency can expedite withdrawals and deposits, too. Some users also believe that cryptocurrency casinos and sportsbooks are more secure, as they do not hold swathes of data about you, such as your name, date of birth, credit card information, etc.
You can deposit and withdraw funds once you connect your wallet to a crypto-gambling provider. If a casino or sportsbook is the target of a cyberattack, criminals will aim for the gambling platform’s holding wallet, where most of the funds are stored.
While this is far from ideal, a hack at a traditional casino often involves personal information that is then sold on the dark web – so when transacting with cryptocurrency, even in the event of a breach, there is no identifying information about you to be sold.
Digital Marketing
The rise of people using cryptocurrency to play online gambling games has resulted in a shift in the approach to digital marketing that many companies are taking. Of all the benefits of digital marketing in the modern world, crypto casinos and sportsbooks have changed the dynamic, as they can use blockchain and cryptocurrency projects to advertise their services and appeal directly to those who might shift their allegiance away from traditional platforms.
Final thoughts
Cryptocurrency hasn’t changed online gambling too much, but it has offered another angle for customers. Traditional casinos no longer hold all the chips and have to adjust to crypto providers and customers who are increasingly looking to put their digital assets into practical use.
Perhaps a decade from now, this change will be more evident, and cryptocurrency casinos could be a worthy challenger to traditional casinos. The difference is still vast at the moment, but with many analysts and experts believing that Bitcoin and the crypto market are heading for new all-time highs in 2025, change could come sooner than we think.
