Cryptocurrencies are the currency of the internet so it should be no surprise that cryptocurrency casinos have become extremely popular for those looking to gamble on their crypto assets.
Bitcoin gambling was the first and is the most prevalent form of online crypto casinos and gambling, with a wide selection of game types that extend far beyond traditional casino games. Regardless of how you feel about gambling, it’s clear that digital currency seems like a natural fit for digital gambling.
Combined with better odds than traditional casinos and provable fairness, it is no wonder that Bitcoin gambling is becoming increasingly popular.
Bitcoin Gambling Pros & Cons
Pros
- Faster transaction speeds, which means much faster deposits and withdrawals
- Relatively anonymous
- Higher limits on deposits and withdrawals
Cons
- Potential for scams
- More technical knowledge is required than regular online gambling
Key Features of Bitcoin Gambling
There are several key features of Bitcoin gambling, they are regulation, legality, provable fairness, and security.
Regulation
Much like traditional online casinos, Bitcoin casinos are regulated, and you will want to make sure that the one you are interested in using is registered with a reputable licensee. Where the casino is registered also matters, as some licenses are easier to get than others, meaning that some have higher protection for customers than others do.
Legality
The legality of Bitcoin gambling is based on the country you are gambling in (where the casino is registered), and not the country you are living in. It is legal to gamble online in almost all US states, so it is just about finding a site that accepts US users if you are interested in Bitcoin gambling.
Provably Fair Bitcoin Games
Many online casinos accepting Bitcoin and other cryptocurrencies have decided on proving to players that there is no way they could have manipulated the results of a wager, using the same mathematical concepts well-known in cryptography. This is called provable fairness. To show users that their games are provably fair, they transparently show users the algorithms used to play the game, and users can check these algorithms themselves at any time while they are playing.
The exact process varies from site to site, but generally, it involves a server seed, a hashing function, a hash of the server seed, a client seed, and a nonce. The client seed, the hash of the server seed, and nonce are known by the user at first, and once the server seed is revealed, they can all be used together to prove all bets have been fair. For example, on BitStarz you can view the fingerprint (bet amount, what you bet on, etc.) of your wager before playing the game, and then verify that the fingerprint entered into the game was the same and therefore proving that the bet was fair.
Security
Because Bitcoin casinos involve blockchain they are quite safe as long as the site is trustworthy. Bitcoin wallets are arguably safer than bank accounts for transfers and the blockchain is essentially unable to be hacked, meaning your funds are much safer than when stored on a traditional gambling site that you fund with a bank account.
How is Bitcoin Gambling Different from Traditional Gambling?
Bitcoin gambling is different from traditional gambling in a few ways. First of all, Bitcoin gambling is almost entirely anonymous because by using Bitcoin or other cryptocurrencies as your funding, you can deposit funds without having to provide identity information, whereas if you want to deposit fiat currencies such as USD or EUR, you will have to complete standard Know Your Customer (KYC) and Anti-Money Laundering (AML) identity procedures.
Next, funding your account for Bitcoin gambling is much faster than with traditional gambling and likely with lower fees. That goes for traditional gambling and things like sports betting with crypto. This is because Bitcoin transactions are processed instantly and you only have to pay the network fee, whereas with traditional gambling you have to connect a bank account and are subject to their processing times and fees.
Finally, Bitcoin gambling is different from traditional gambling because Bitcoin casinos (at least the ones you should be using) are provable fair, and transparent. This means that you can check their algorithms and see that the games truly are random chance. That goes for everything from Roulette to online poker.
Bitcoin casinos also tend to have a low house edge compared to traditional online casinos because they have lower operating costs, which means that your odds are winning are higher.
How Can I Start to Gamble with Bitcoin?
To start gambling with Bitcoin, you will first need to own some.
To buy Bitcoin, you will also need your Bitcoin wallet to deposit it in, as you cannot use an exchange or other form of non-custodial wallet to be able to gamble your Bitcoin, though you will likely need an exchange to make your first Bitcoin purchase. Once you have bought some Bitcoin and deposited it into your wallet of choice, you can then start gambling with it by picking a site and depositing some funds to start making bets.
Is Bitcoin Gambling Legal in the US?
Yes, Bitcoin gambling is legal in most US states, and it can be easier to gamble online as a US citizen if you use Bitcoin.
This is because of the Unlawful Internet Gambling Enforcement Act (UIGEA) which imposes stringent regulatory oversight regarding how banks process gambling-related transactions, meaning it is hard to fund online gambling with traditional finance methods as a US citizen.
Using Bitcoin circumvents this issue as you are not using a bank as an intermediary.
Is Bitcoin Gambling Safe?
It depends on the site. As long as the site is trustworthy Bitcoin gambling is quite safe because all transactions take place using the security of the blockchain.
On the other hand, there are plenty of scams out there so make sure you do your research if you are going to transfer your hard-earned Bitcoin onto a gambling site.
