Are Bitcoin Casinos the Future and How Do They Work?
The online casino industry is one that has been growing significantly over the past decade. Notably, the last few years have seen the player base at many online casinos skyrocket. In the internet age it would seem that even casinos are moving online as their player base is spending more time at home. At the same time, Bitcoin and cryptocurrency as a whole, have been a hot topic of conversation for the past decade almost. If you were not aware, Bitcoin is a digital currency that exists as a parallel to traditional currency. Bitcoin is extremely valuable, but there are not a lot of places you can use it at the moment.
Online casinos are one of the few places that accept Bitcoin as a payment method. However, that is not the case for every online casino. Since Bitcoin is still pretty new and it is not accepted everywhere, you will need to look at payment methods before you start playing on a new site. The good news is you can take advantage of free offers to take a closer look.
What Are Bitcoin Casinos?
Bitcoin is the most popular digital currency and there are a few online casinos that transact only in this cryptocurrency. However, there are many others that offer it as one of many deposit and withdrawal methods. The number of online casinos which let players play and withdraw with Bitcoin are growing worldwide.
BTC casinos are online casinos that let players play primarily with denominations of BTC. They are actually fairly common in jurisdictions with tricky gambling laws, where the anonymity and practicality of this crypto option make it incredibly useful. Additionally, there are usually zero (or very low) transaction fees when you deal with Bitcoin. So, you can make as many transactions as you want without any issues.
How Do Bitcoin Casinos Operate?
Software is among the most important aspects of online casinos in general. Most popular gaming sites will have their own gaming software that they developed on their own. Other smaller sites will purchase or rent versions of the software. The software conducts and runs the games with minimal human intervention needed. For example, in card games, the software plays the role of the dealer.
Since Bitcoin casinos operate online, they face the problem of convincing users that their business is legitimate. As a result, to remain transparent, many Bitcoin casinos will establish trust by disclosing how their software algorithms work. Of course, players should only choose sites that are licensed as well.
Can You Receive a Bonus with Bitcoin?
When you start registering to play at online casinos, you will quickly realize that many of them have promotions available for new users. These can include match deposit offers where they will match the amount of Bitcoin you deposit up to 100% or more. On the flip side, similar to their US cousins, Canadians, British, Aussies and all other gamers are loving no deposit casinos which offer free offers with a chance to win without any risk.
Does Your Bitcoin Balance get Converted into Fiat Money?
Before we get started answering that question, you might not know what fiat money is. Fiat money is government-issued currency that is not backed by a physical commodity like gold or silver, but rather by the government that issued it. The value of fiat currency is derived from the relationship between supply and demand, and the stability of the government that issued it. Most modern paper currencies are fiat currencies like the U.S. dollar and the Euro.
Bitcoin is obviously not a fiat currency, and since Bitcoin is so valuable, you will only be depositing a fraction of a bitcoin at a time. As a result, you may wonder if your currency will be converted into fiat money. If you are playing at an online casino that allows several types of currencies, it will probably convert your money into fiat currency. This is done so that it is easy to track how much money every user has deposited into their account. If this is done you will not need to worry about exchange fees.
If you are playing at a Bitcoin casino that exclusively deals in Bitcoin, it probably will not convert your money. Instead, you will make bets with your Bitcoin directly.
What Are the Best E-Wallets to Use at Bitcoin Casinos?
Once you are done playing at an online casino, you will want to withdraw your money. You can withdraw your money back to your Bitcoin wallet if you want, but you can also withdraw it to an E-wallet as a fiat currency. That will allow you to deposit your winnings back into your bank account if you want. Here are a few of the most popular E-wallets out there right now.
Coinbase – Coinbase is a secure online platform for users to buy, sell, transfer, and store digital currency like Bitcoin. Their mission is to create a financial system for the world and to be the leading brand in converting digital currency into traditional currency. Coinbase is a great option because they make buying and selling easy. They also handle security and backups, so you do not need to worry about losing your funds if there is a blackout.
Exodus – Exodus is a great option if you are looking for an e-wallet that can store many different types of cryptocurrency. You can access your wallet on desktop and mobile with its easy user interface. One of the more popular features that comes with it is the ability to swap between several growing cryptocurrencies. Since it has such a simple interface, it is great for beginners. There is also plenty of support which is essential for beginners. However, that does not mean that experienced users will not appreciate Exodus. It has several advanced trading features that will make advanced cryptocurrency traders happy. The biggest downside to this wallet is that it is a closed source software.
Electrum – Electrum was one of the first Bitcoin wallets. Released in 2011, Electrum has almost been around since the beginning of Bitcoin. The wallet is fairly barebones in terms of its user interface, it is excellent at its primary function of storing bitcoin. Additionally, Electrum is suited for advanced users because of its complex options. You will also be happy to hear that it is open source, which allows users to set custom transaction fees. You can also choose between legacy Bitcoin and Segwit. Electrum is perfect for advanced users who want advanced security features and customizability in a simple layout.
Mycelium – Another great bitcoin wallet is Mycelium. It is an open source and mobile only Bitcoin wallet. So, if you wanted to manage your cryptocurrency on your desktop, this is not the E-wallet for you. Additionally, Mycelium has a more refreshed user interface than other options, and it has a built-in exchange. Like Electrum, Mycelium was one of the first Bitcoin wallets available to users. Also like Electrum, you can set transaction fees yourself, allowing you to determine how long you want to wait for a transaction to be processed. Another interesting feature Mycelium has is hardware wallet support, which allows users to hold their Bitcoin on an offline storage device.
Ledger Nano X – The final E-wallet for you to check out is Ledger Nano X. This is a second generation hardware wallet from Ledger. Ledger is a French company that has been involved in cryptocurrency for many years. The Nano X looks like a USB drive, and it connects to devices via Bluetooth or USB. So, you can connect to your computer, or you can use Bluetooth to connect on your mobile device. The thing that makes Ledger Nano X great is that it supports over 1500 cryptocurrencies. The list of supported cryptocurrencies is growing every year, so advanced users that trade a lot will love Ledger Nano X. Additionally, while the device itself is a cold storage hardware wallet, the company has made a software that provides users with an interface to view all their holdings.
The Legal Aspect of Bitcoin Casinos
Bitcoin offers unique problems that more traditional currencies do not have. For example, running bitcoin casinos is illegal in the United States. As a result, most of the legally known Bitcoin casinos operate outside of the United States. Fortunately, American users can play games at these European and Asian based casinos.
Before you start playing games at a new casino, you will want to check to see if it operates legally. Not every Bitcoin casino is run legally, and you do not want to get wrapped into any legal issues because you were not aware it was not a legitimate casino. All licensed online casinos display their licensing information somewhere on their website. Typically, it will either be on the home page or in the “About Us” section. If you cannot find it in a few minutes it probably means it is not there, and you should move onto another online casino.
Bitcoin casinos are still a rising part of the online casino industry. However, with Bitcoin becoming more and more valuable, you can expect more Bitcoin casinos to pop up in the next few years. When you use one you want to make sure that you find one with several withdrawal and deposit options. Additionally, you need to make sure that you find one that is licensed so that you do not have any legal issues. If you do those things you should not have any issues and you will be able to enjoy playing games for hours at a time.