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Although quite a long time ago we heard about Bitcoin for the first time, decentralized currencies are still on the rise, and moreover – they’re stepping into new industries. But the topic of blockchain and cryptocurrencies is still shrouded in mystery – with a lot of people not knowing how it works, there is quite a big fear of using it. People wonder is it legal, or is it safe, to convert their traditional money into decentralized ones? We’re here to answer all of these questions and dispel doubts – especially the ones that go around in the entertainment industry, focusing on the usage of crypto in online casinos.
What are decentralized currencies?
Let’s go back to the beginning – what is cryptocurrency? It is a digital form of money, to be precise a currency, that uses high technology to secure information and communication during transactions and verification of currency ownership while exchanging it. The main difference between a traditional currency and the digital one is that the first is controlled by the authorities – it is fully regulated and produced only by the government of each country. On the other hand, cryptocurrency is created in a process called mining, which can be done by anyone, which is basically solving mathematical problems with proper algorithms that results in gaining coins. Cryptocurrencies are also purely digital, and not regulated or dependent on any authorities.
Cryptocurrencies in casinos
So, where are cryptocurrencies used? This new kind of money is revolutionizing online casinos. But how did it happen? Online casinos are growing rapidly and are introducing more and more technologically advanced solutions, making their digital customer experience even better. So there is no wonder the new payment technique was introduced there as well. Making a transaction with crypto is not only fast – one can easily deposit or withdraw funds, but also very reliable – the transactions are using encryption and due to its advanced coding, they are very secure. So there is no wonder that more and more players are choosing casinos accepting ethereum or bitcoin.
On top of that – some offer their customers lower transaction fees and better wagering requirements. Cryptocurrencies are also well known for ensuring full anonymity of their holders. How does it tie up with online casinos? The players’ details such as location are hidden from not only the casino but also authorities, so it is almost impossible to deduct under whose jurisdiction he or she is. There is no wonder why online casinos and cryptocurrencies are a perfect match!
What cryptocurrencies are out there?
We already established what cryptocurrencies are, but just like with the traditional ones we have different types – Dollar, Euro, Pound – we also have different types of crypto to choose from. The best-known virtual currency and the oldest one is Bitcoin. It is a fully peer-to-peer money system that was founded in 2009 by Satoshi Nakamoto whose identity to this day is not confirmed. The second most popular one is Ethereum, which was introduced in 2015. It is more precisely a blockchain platform as well as a currency called Ether (ETH) commonly known as Ethereum. This open-source project went through a major upgrade, resulting in Ethereum 2.0 or Eth2 with the main goal of enhancing the speed and increasing the overall efficiency.
Is crypto legal?
And for the ones that are still not sure about the whole crypto business – yes, it is legal. Some people may get this confused because of the lack of regulations in many countries. It is due to the technology still being new and also to the fact that its main idea was not to be controlled by any individual or entity (such as governments). And since it is global and distributed all over the world at all times, it is almost impossible for one governing body to regulate it. And physically there are no headquarters or offices that could potentially be investigated. It is all on the internet that can not be controlled.
Online casinos licencing
In order to maintain its reputation and operate legally, an online casino has to apply for a special gambling license. So introducing decentralized currencies such as Ethereum, Bitcoin, or Solana to its payment option is often an extra addition. However, often there are no particular requirements for Bitcoin or Ethereum licensing, but there are of course some guidelines and best practices that should be followed.
But what does it mean for a casino to be licensed by an authority? It means that the body that issues the license takes some responsibility for checking the performance of the subject for whom the license was issued. The regulations are constantly changing and are varying from one country to another one, so it is important to be up-to-date with the newest ones. Because of the license, the levels of trust amongst players are much higher. The authorities are auditing the casinos and issuing proper compliance certificates that are ensuring gambling enthusiasts that the particular casino is trustworthy. The license also allows buying proper gambling software from well-known and reputable developers.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
