In one of our previous articles, we talked about upcoming 2020 casino trends.
We mentioned technology and innovation in every facet of digital gambling and how it will influence casinos further. One significant trend that we didn’t really talk about and it is quite prominent are the cryptocurrencies.
As a casino player, you probably know all the different ways casinos have to improve your experience. An essential aspect of customer safety and satisfaction is banking methods and currencies. In this article, we will talk about digital currencies like Bitcoin and Ethereum and try to explain why they are so popular.
What are Cryptocurrencies?
Cryptocurrencies are digital currencies that employ encryption to create new units (or tokens) as well as verify the transactions. Virtual currencies typically use online public ledgers known as the blockchain. The blockchain is there to trace payments. Every cryptocurrency has native coins that circulate the web. This process of creation of new tokens is called mining.
Today, over 6,000 cryptocurrencies exist. Of course, wider audiences heard about cryptocurrencies only when Bitcoin appeared on the market. What is interesting about Bitcoin is that it isn’t the first cryptocurrency. Bitcoin is the first decentralized cryptocurrency, which means that it functions on a peer-to-peer basis. There is no central bank or regulatory body that oversees transactions. Users make payments directly to other users, where the only personal info available is the wallet ID.
Benefits of Digital Currencies
If you are confused about what we have just said about cryptocurrencies, do not worry. These digitalized coins are very confusing to most people. The most important thing about them is that they are very safe for users.
In the beginning, financial experts criticized Bitcoin and other digital currencies for their virtual nature. Everything happens online, so people were worried that it would not be safe for use.
In reality, it’s quite the opposite. Cryptocurrencies are one of the safest payment methods in the world. All transactions are entirely anonymous, so the other side knows only your wallet ID. There is no way to steal your personal information or credit card information.
So, of course, cryptocurrencies have many benefits for casino players as well. They enable safe deposits, high transfer limits, and complete user privacy. Plus, they are swift. Deposits and even withdrawals check out in a heartbeat. And compared to other payment options, it is clear that they have no real competition in online casino banking.
The Rise of Crypto
Nowadays, it is hard to find an online gaming site that doesn’t offer cryptocurrencies on its banking options list. But the situation wasn’t always so stellar.
When Bitcoin first appeared, online casinos were still in the process of gaining attention from players. The comfort of playing at home instead of visiting far-away gaming halls was brilliant. Transferring games to the virtual world was an easy task but getting used to virtual money was different.
Online gaming sites have a lot of rules to follow to get licenses from regulators. That includes a string of permits and contracts with banking companies to offer their services. With cryptocurrencies, the situation is a little bit complex. There is no central bank, as we mentioned, so using this mechanism is not easy.
That is why first Bitcoin casinos offered only Bitcoin as a banking option.
As technology advanced, more cryptocurrencies emerged. Slowly, the players got used to virtual money, which led to an increase in user engagement in Bitcoin casinos.
Soon after Bitcoin became famous, Litecoin launched as a rival. Litecoin is prevalent in many casinos. However, Bitcoin is the undisputed star of the crypto community.
Another prominent cryptocurrency is Ethereum, a blockchain platform that offers Ethers as its native coins. A host of digital casinos give their players a chance to deposit and withdraw winnings using Ethereum and other cryptocurrencies.
As you can see, this is a trend that is yet to reach its peak. Many financial experts now predict a bright future for all cryptocurrencies, especially in the casino industry.