Bitcoin Casinos (₿)

Introduction

If you have been gambling online…

...for a while you may have heard about Bitcoin casinos. This is an area of gambling that debuted a few years ago, starting off as an underground method for players to gamble on sports to casino games. As the years have gone on and Bitcoin is becoming accepted as a legitimate currency, many established online casino operators have begun to accept Bitcoin as a lucrative way to get more customers to come through their doors.

If you are new to the world of Bitcoin gambling...

...I have assembled the following guide to help you understand the world of this currency, and address the potential issues that players using Bitcoin may encounter.

A History of Bitcoin

Bitcoin is a completely cyber form...

...of currency, using a series of characters to build up a unique identifier to make the cryptocurrency unique. It was created in 2008 by Satoshi Nakamoto (which could be a real person, an alias, or a group of people), and has grown to become the world's most popular virtual currency. Bitcoin is created through a process known as mining, where computers use their computing resources to try to form the Bitcoin, and there are many benefits to owning and possessing Bitcoin.

Bitcoin has grown in popularity over the years thanks to its Peer to Peer use, anonymity, and fact that the currency is decentralized, meaning that it can't simply be taken away from you by a government entity.

Unfortunately though...

...Bitcoin has continuously been the target of hackers, seeking out ways to gain access to people’s private wallets and coins.

Conversely...

... Bitcoin has been seen as a front for a lot of criminal activity that isn't stable in terms of inflation. Prices for the currency have fluctuated wildly, starting at a few cents when it first popped onto the market before skyrocketing to more than $20,000 per coin before suffering a series of crashes and currently sits at roughly $10,000 a coin.

The ebbs and flows of this currency...

... have brought Bitcoin into the news, as the 2013 run on banks in Cyprus ended up seeing many residents of the island country pulling their money from the banks and investing in the currency, as the financial stability in the country was teetering. This exposure brought about the conversation as to whether Bitcoin was a fad or a lasting trend, a conversation that continues to this day.

Moving forward...

... it is difficult to gauge exactly what Bitcoin will look like going forward. It is becoming more difficult to mine Bitcoin, and the fluctuations in price are a definite concern. With that being said, it does appear that the casino industry does believe in Bitcoin and there will likely be spots to play with this currency in the near future.

How to Buy a Bitcoin

It can be a bit intimidating to buy your first Bitcoin, but there are plenty of ways to discover how to purchase this virtual currency. The registration process for buying Bitcoin looks something like this:

• Register for an account with a Bitcoin wallet. There are many choices out there, including Bitstamp, Bitfinex and Coinbase.
• Link your bank account to your Bitcoin wallet or withdraw from your online casino account (can skip the next step).
• Purchase your Bitcoins through the wallet solution you have chosen to install on your card.

Here is a video showing you how to create a bitcoin account at Coinbase.

How to Deposit Using Bitcoin

Depositing at a casino...

... using Bitcoin is pretty simple process, and not dissimilar from what you would experience if you deposited via an e-Wallet. Players will have to enter in their wallet information and enter in the amount they want to transfer to the casino.

The withdrawal process...

... is very similar to the deposit process, and would see the casino paying your Bitcoin wallet in that currency.

Below is a video illustrating how to make a bitcoin deposit via Coinbase to Superior Casino (US-friendly)

Benefits of Bitcoin Casinos

When it comes to online gambling, Bitcoin is an attractive payment option for players and enthusiasts alike, due to several reasons such as:

• Anonymity – One key perk for the massive pool of online gambling enthusiasts is that they get to keep their identity hidden during their favorite pastime. This has been particularly beneficial for players looking to keep their entertainment choices away from official records, due to credit reports, financial stability or simply privacy.

The fact that Bitcoin holders are solely identified by their Bitcoin wallet public key, and possibly a username at the chosen casino website, ensures a level of anonymity like no other.

• Security – Security is a top priority for any and all banking methods, and many standard institutions have rightfully implemented all the latest encryption and protection protocols. Nevertheless, Bitcoin gets its protection from the unique built of its platform and system, hence enabling a one-of-a-kind peer-to-peer transaction processing solution that relies on mutual confirmation and approval for proper execution.
• Speed – When it first came to the fore, Bitcoin was second to none. Nowadays, due to the much greater volume of Bitcoin miners, traders and holders, the processing time has slightly increased, but still beats the regular payment processing services by a long shot.

And when it comes to online casino players looking to enjoy speedy deposits that wouldn’t be at the expense of their security, this crypto has it all.

• Low fees – Bitcoin’s fees are low to practically non-existing, as there is no central authority or institution to charge you for their troubles. In fact, the only fees you would likely face as a Bitcoin online casino player is the small charge during the transaction process, that would later turn into the miner’s prize.

Considering you need the miner to solve the complex calculation and confirm your transaction in order for the funds to go through, it’s more like paying next to none in order to get it all in one.

• Legality – One of the most debatable matters about Bitcoin is the question of its legality. There is a tendency for governments to try and regulate the cryptocurrency, some by banning it within their territory, while others adopt it. Regardless of their stance, a major advantage is the decentralized character of the crypto token, allowing it to remain beyond the control of any one authority and legal system.
• Exclusive Bitcoin Bonuses - Many online casinos offer bonuses for deposits made via bitcoin, we have created a list of these below:

Downsides of Bitcoin Casinos

There are a few downsides attached to casinos that use Bitcoin as their primary source of funding. Many of the sites that had operated in the past did struggle with being unlicensed or scams, and even some reputable spots like Seals With Clubs were not stable and collapsed at the first sign of trouble. Apart from such scams and malicious intentions, the Bitcoin gambling community is also deterred by the following setbacks:

• Volatility – The volatility of the currency is still considered a rather significant shortcoming that is setting players off the idea of Bitcoin gameplay. The argument revolves around the fact that players are already gambling their hard-earned cash on the games of luck and chance, and practically steer clear of other potential risks such as market fluctuations that could see them lose massive amounts in moments.
• Licensing – While the absence of a central regulatory power may be considered one of its strong suits, the lack of licensing authoritative bodies willing to certify Bitcoin casinos is definitely a disadvantage. Players are normally looking to settle with a licensed operator that has met the industry requirements, and tend to be put off by the prospect of enjoying fast deposits and withdrawals if it’s only available at unlicensed sites.
• Availability – Considering the rather revolutionary nature of the cryptocurrency, there is still a large portion of providers reluctant to introduce it to their banking page. As a result, players are left with a somewhat limited range of casino and other gambling sites, and the game content they feature on these platforms.

Software Developers Supporting Bitcoin

The matter of Bitcoin availability on casino sites…

…has additionally brought about the question of software providers willing to support the cryptocurrency as a payment method for their game portfolio. Although there aren't as many gambling software developers out there supporting Bitcoin casinos, there are still some high-quality names that do offer games to players using the virtual currency.

The biggest proponent...

.... of Bitcoin gambling thus far appears to be BetSoft, whose 3D slots have popped up on more casinos than any other software. Other big names that are prominently seen as providing Bitcoin related gambling services are Microgaming and Aristocrat.

There are a handful of smaller software providers who also provide their games to casinos using Bitcoin, but for the most part these casinos are lacking licensing and they do not make themselves open to independent audits to ensure fair play.

Bitcoin Poker

Although casinos...

... are generally just starting to come into their own when it comes using Bitcoin, online poker is a bit more established in this market, and you will find some bigger spots offering Bitcoin transactions for poker. The largest of these is America's Cardroom, which targets the American gaming market although players from other jurisdictions are able to log in and play as well.

Just like with older casinos...

... the most popular Bitcoin poker rooms were sites that operated in a grey market of sorts. The previously mentioned Seals With Clubs was very popular among Bitcoin users until its recent closure, showcasing the lack of stability that can come with using a virtual currency that is not backed by a national treasury.

Nevertheless…

… the situation nowadays has greatly improved and stabilized, and Bitcoin casinos and poker rooms face much less pressure and risk of failure. In fact, many player pools in jurisdictions which ban online poker gameplay are more than gladly making use of Bitcoin operators ready to swoop in.

FAQs

Bitcoin Casinos

Internal Links

• Getting into Bitcoin and Crypto Made Easy Through Online Casinos
• How to Setup a Bitcoin Wallet and Use It to Withdraw Funds from Online Casinos

External Links

• Guide to Buying Bitcoin for Gambling Online

Written by: Shelly Schiff