It’s estimated that there are more than 560 million people who use cryptocurrencies around the world today. It’s no surprise then, that crypto casinos are on the rise too. Simply put, players use cryptocurrencies to bet their wagers at these casinos. While this development definitely has advantages, it also has its drawbacks. Both are discussed here.
The pros of crypto casinos
Cryptocurrency usage hasn’t grown the way it has in the past years for no reason. It offers significant advantages, like higher security and greater privacy, that make it attractive. It’s to be expected that these positives have spilled over into crypto casinos too. But these are not all. There are other advantages for crypto casinos too, as discussed below.
- Higher security
Since cryptocurrency usage relies on the blockchain, there’s an inherent security attached with it. Blockchain records each transaction made with a cryptocurrency forever. As a result, it’s hard to commit fraud using them. This is a break away from the traditional transactions that happen through banks.
Further, the use of multi-signature wallets calls for a number of approval steps before a transaction can be made, reducing the chance of fraud. Also, encrypted communication offers another layer of security.
- Greater privacy
Since crypto transactions don’t require revealing personal information, much privacy is available to players. In any other financial transaction online or in person, unless a cash payment is made, a number of details are required. This makes players and casinos both susceptible to greater fraud.
- Better transaction fees
Online casinos have already shifted the gambling game. Whether you are signing up here or at any other casino online, chances are that you will be a member in minutes. While this is true whether gamers use regular currencies or cryptocurrencies, the latter does have other advantages too, besides the ones noted above.
One of these is the transaction fees. Since there’s no currency conversion or currency conversion fees involved, a certain percentage doesn’t just get deducted from the payouts. This can be beneficial for regular gamers who would otherwise use international currencies.
- Faster processing times
Since the crypto network is decentralised and there’s no one financial entity that needs to be gone through, it tends to move faster. Withdrawals are far quicker. It does bear mentioning here, though that the issue of scalability is coming to the fore. While it continues to progress, bitcoin’s network is getting weighed under the number of transactions taking place through this everyday. As a result, the clearing of deposits can take a long time if the network is busy.
Cons of crypto casinos
It bears mulling why with all their advantages, cryptocurrencies are still not used more than they currently are. That’s because there are still risks to them, as discussed below.
- Security depends on casino
Not all the above mentioned security measures apply to all casinos, though. Some are more likely to focus on secure wallets and encryption than others. This means, gamers need to carefully choose the casinos they visit.
- Volatility in value
The prices of cryptocurrencies like bitcoin can be very volatile. As a result, even if a player wins big in casino games, a sharp drop in the value of bitcoin can still reduce the winnings significantly.
There’s a good reason for this too. Cryptocurrencies aren’t legally recognized in most parts of the world. This means that there’s a constant threat that they could be clamped down on at any time. This in turn means that these currencies’ value can actually fall to a big fat zero at any time. This then suggests that gamers would be better off switching their money earned to recognized currencies. This will ensure that the value of their deposits is ensured.
Crypto or no?
Considering both the pros and cons of crypto casinos reveals that the verdict is still out there. While there’s no denying their many benefits, they have some significant risks too. Crypto casino gamers can argue that the usage of the currency adds to their ability to take risks. And that is part of the thrill.
But there’s a possibility that the value of their winnings can go down to zero if the regulators decide tomorrow to ban them. This might not be a risk worth taking. In any case, since cryptocurrencies like bitcoin don’t have a fundamental economic grounding unlike fiat currencies, they are volatile. There’s no way of knowing where they might go next.
Still, their advantages are undeniable. The most obvious of these is the use of blockchain that records all the transactions, making them more secure and transparent. The kind of fraud that’s easier with the traditional financial networks can then be avoided. The use of pseudonyms, if so desired, also makes for greater privacy for players. And the fact that there’s no currency conversion required even on international casinos, makes the transaction fees on crypto casinos lower.
