In the past couple of years, we have witnessed mass crypto adoption by all industries including the gambling industry. It seems like cryptocurrencies were the perfect fit for the new emerging trend of online casinos as they see it as a great way to expand their offerings and open up new markets that might attract more people.
The digitalization of the online casino industry and the entire crypto craze forced casinos to adapt to the market and start investing in blockchain technologies and cryptocurrencies.
Many people say that blockchain technology will lead the future financial market, and when we are talking about such change on a massive scale, casinos wouldn’t want to be left out of the transition.
The introduction of cryptocurrencies as a payment system opened up many benefits for both people that want to play casino games and online casinos. The financial market is becoming decentralized, faster, more convenient, and most importantly, safer and every day we see a new Bitcoin gambling site being launched.
So, this got us wondering, why are online casinos adopting cryptocurrencies? Is it only because they are trending at the moment, or do they really believe in this technology?
How Does Blockchain Technology Work with Casinos?
The adoption of blockchain technology and cryptocurrencies by casinos is a recent trend that started only a couple of years ago. Even though the first blockchain-based money to be accepted by casinos happened way back in 2012, the big transition to such a payment system happened years later.
With the introduction of many other cryptocurrencies like Ethereum, Cardano, XRP, and many more, blockchain technology opened up many new and unexplored markets for online casinos.
As of now, casinos mainly use Blockchain technology for allowing crypto transactions on their websites. However, this technology has a much bigger potential. Aside from cryptocurrencies, blockchain technology can be used for NFT (non-fungible tokens), which is also a billion-dollar market that can be dominated by casinos.
This opens up the bigger potential for the future of blockchain technology and online casinos, where people can get some kind of benefit in a form of digital art or a token while they play their favorite casino games.
Benefits of Using Cryptocurrencies in Online Casinos
Using blockchain technology in online casinos brings many benefits to the table, and it is not only for the popularity of the market. Online casinos that use cryptocurrencies and blockchain technologies have numerous advantages that might dictate their dominance in the future.
In a way, online casinos preparing for the future market as they want to get a piece of the cake as cryptocurrencies are becoming more and more popular.
With that said, let’s highlight some of the benefits that come from using cryptocurrencies for online casinos.
Higher Level of Security
It seems like cryptocurrency technology solves one of the biggest problems that the casino industry has, which is the security of the transactions. Like it or not, the online gambling sector has always been a target for fraud and scams, and introducing new ways of transacting money will add another layer of security beneficial for everyone.
The built-in security characteristic of blockchain transactions is an excellent choice for making the market more secure. When online casinos use cryptocurrencies, every transaction is recorded on the blockchain making it easier to track everything leaving out much less space for error or scams.
Additionally, when online casinos use cryptocurrencies, they don’t need to require people to register on their website, authenticate their identity, or provide put out any other personal information in danger.
Since you are only required to put in your wallet address, gambling with cryptocurrencies is completely anonymous. With blockchain technology, your personal information is only tied to your e-wallet on the blockchain which is a decentralized network that nobody has access to.
This means that you can gamble on your favorite casino websites without adding any piece of personal information, that can later be abused in many different ways.
The other big benefit that comes from using cryptocurrencies is the cost-effectiveness of the process. As of now, a transaction in the crypto world is the cheapest way for transferring money online, especially for some cryptocurrencies that use the proof-of-stake model.
Additionally, using a credit card or debit card to pay may lead to additional costs for the players, and some banks can charge you extra for each transaction.
Makes the Process Transparent and Fair
Sometimes it is hard to gain trust in an online casino website due to many scams on the internet. However, if an online casino uses blockchain technology and cryptocurrencies, you’ll be somehow ensured about the casino’s fairness.
Making the entire process more transparent, where regular people can track where their money went and is helping the online casino industry to become more trustworthy. On top of that, all transactions are recorded on the blockchain which is a decentralized system that nobody has access to. This way users can be ensured that the process is fair and transparent.