Cryptocurrency in gambling

Cryptocurrency in gambling

datingcat 01.04.2021

In settlements between operators, there is a steady trend of replacing the usual money with cryptocurrency.  To understand how modern payment technologies influence gambling business, let’s consider positive and negative sides of this issue. We will also note that if you are looking for a casino to play, you should choose such a site on a verified resource. For example, you can find out reviews about jackpotcity canada here https://slots-online-canada.com/review/jackpot-city-casino/.

Cryptocurrency: definition and brief history of origin

If fiat money has a specific physical expression, then cryptocurrency is absolutely virtual. And it was invented in 2008, when an article appeared on a forum called Bitcoin: A Peer-to-Peer Electronic Cash System, examining the possibilities and prospects of using electronic money, and in which the word Bitcoin appeared for the first time. Already in 2009, the first bitcoin wallet was created, with the aim of providing an anonymous, uncontrolled by any governmental or financial structure, method of payment between people. At the same time, it was important to ensure transparency of transactions.

Gambling switches to cryptocurrency

Anonymity is the most important positive aspect of cryptocurrency transactions. To transfer funds, it is enough to specify the number of an electronic wallet registered without identification. The maximum speed of electronic money transfer is achieved by removing intermediaries such as banks from the chain of funds movement. The transaction is carried out directly between the client and the operator. The fact that there is no need to convert payments also helps minimize costs when using cryptocurrency

The bank commission is zero, because banks are not involved in transactions when moving cryptocurrencies. Accordingly, this saves users a lot of money. Disputable issues on the movement of funds are easily resolved, as the payment history is freely accessible and easy to check. The wallet where the cryptocurrency is stored is fully protected by a unique identification and password system. In theory, even if fraudsters manage to hack the database of the gambling site, they will only get access to the funds of the administration. In practice, such cases are not known. Transactions in cryptocurrency are available anywhere in the world, even in countries where cryptocurrency is officially banned.

Disadvantages of cryptocurrencies in gambling

There is no such thing as an ideal. In our case, there are a number of negatives that affect the use of virtual payments in the gambling business.  They include overstated volatility of cryptocurrency prices, whose rate is often too dependent on the noise in the information space. The unpredictability of electronic money price fluctuations is considered to be a significant risk factor. 

The complexity of creating a password to access a wallet, on the one hand, increases protection, but, on the other hand, becomes an area of risk in the case of losing one’s password. In this case, it becomes impossible to restore cryptocurrency savings. Legal problems may arise for users of crypto-purses in the countries where the use of such types of payments is officially prohibited.

Blockchains and Distributed Ledger technologies have many tools to prevent such risks. 

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