The rise of bitcoin and how it’s transforming online gambling
Guest post © 2017 Great Bridge Links, updated in 2024.
What Is Bitcoin?
Bitcoin is a digital currency, also known as a cryptocurrency, that operates without a central authority or banks. It was introduced in 2009 by an anonymous person or group of people using the pseudonym Satoshi Nakamoto. Bitcoin enables peer-to-peer transactions between users directly, through the use of cryptography, across a decentralized network. This means that transactions are made with no intermediary, and they are recorded on a public ledger called the blockchain. Bitcoin can be exchanged for goods, services, and other currencies, both digital and traditional. Its creation and transfer are based on open-source cryptographic protocols, and it is limited in quantity, with a total of 21 million bitcoins ever to be created.
Both bitcoin and online gambling are becoming increasingly popular. This is no coincidence – it is rapidly becoming a match made in heaven as the two industries enjoy a mutually beneficial relationship. Online gambling, which includes poker, casinos, sports betting, and other gaming activities done over the internet, has also seen significant growth in recent years. This increase in popularity is attributed to technological advancements, easy access through the internet, and the convenience of being able to gamble from anywhere at any time. Both industries have capitalized on the digital revolution, making them more accessible and appealing to a global audience.
Bitcoin and online gambling have developed a symbiotic relationship, largely due to the cryptocurrency’s ability to offer anonymity, security, and fast transactions. Many online gambling platforms have embraced Bitcoin as a payment method, attracting users who seek privacy and wish to avoid traditional banking systems and regulations. The decentralized nature of Bitcoin ensures that transactions are transparent on the blockchain, yet the identities of the parties involved are protected. This has made Bitcoin especially appealing for online gambling, where users may prefer confidentiality regarding their activities. Additionally, Bitcoin’s ability to facilitate instant transactions without high processing fees is beneficial for both online casinos and gamblers, enhancing the efficiency of depositing and withdrawing funds.
A consensus network that allows a new payment system and a completely digital currency is essentially cash for the internet.
This week (2017), bitcoin soared above the $1,700 mark as market cap added a total of $1 billion in just one day. Bitcoin has been performing remarkably well in recent weeks and over one month, the price has increased by almost half at 43%.
Over one year, the bitcoin market has grown exponentially from around $7.16 billion in May 2016 to $27.9 billion today. The only way for bitcoin is up and it doesn’t look like that’s going to change any time soon.
That said, many popular gambling sites are yet to embrace bitcoin as a payment method. This is unsurprising given that only last year Bitcoin was reported as an ‘inescapable failure’. However, things have turned around recently and it seems the increasing popularity of online casinos may be partly responsible.
Timesaver
Bitcoins are also great time savers for the player. Typically, online casinos mean you must deal with numerous transactions, bank fees and waiting periods for withdrawals and deposits, however, bitcoins offer almost instant access.
Anonymous
What’s more, because it’s a cryptocurrency, it allows users to make deposits anonymously and it’s not monitored by any bank institution or government authority.
Getting started
If you’re new to using Bitcoin for online slots, here’s a straightforward guide to get you started:
- Set Up a Bitcoin Wallet: First, you’ll need a digital wallet to store your Bitcoin. There are many types of wallets available, including software wallets (for desktop or mobile) and hardware wallets (physical devices). Choose one that suits your needs and security preferences.
- Purchase Bitcoin: You can buy Bitcoin through various platforms, such as cryptocurrency exchanges, Bitcoin ATMs, or peer-to-peer trading sites. You’ll need to create an account, verify your identity (on most platforms), and then use fiat currency (like USD, EUR, etc.) to buy Bitcoin. Once purchased, the Bitcoin will be deposited into your digital wallet. Bitcoin’s How to Buy Bitcoin is a good place to get information.
- Choose a Bitcoin-Friendly Online Casino: Not all online casinos accept Bitcoin, so you’ll need to find one that does. Look for reputable online casinos that offer slots and verify that they accept Bitcoin as a payment method. Checking for licenses, user reviews, and security measures can help ensure you choose a safe platform.
- Deposit Bitcoin into Your Casino Account: Once you’ve selected an online casino, create an account there. Then, navigate to the deposit page, select Bitcoin as your deposit method, and follow the instructions. Typically, you’ll be given a unique address to send your Bitcoin to from your wallet. Confirm the transaction, and the funds should appear in your casino account shortly, often within minutes.
- Play Online Slots: With your casino account funded, you’re ready to play. Browse the casino’s selection of slot games and choose one to play. You’ll be betting with the Bitcoin you deposited, which may be converted into a fiat currency equivalent or casino credits for gameplay.
- Withdraw Winnings: If you win and wish to cash out, you can withdraw your winnings back to your Bitcoin wallet. Go to the casino’s withdrawal page, select Bitcoin as the withdrawal method, and enter the amount and your wallet address. After the casino processes your withdrawal, the winnings will be transferred to your wallet.
A few tips for beginners:
- Understand Bitcoin’s Volatility: The value of Bitcoin can fluctuate significantly. Be aware of this when buying Bitcoin and playing online slots.
- Use Reputable Sites: Only buy Bitcoin from reputable exchanges and play at trustworthy online casinos to avoid scams.
- Consider Security: Use strong passwords for your wallet and casino accounts, and consider using two-factor authentication for additional security.
- Know the Regulations: Be aware of the legalities of online gambling with Bitcoin in your country or state, as regulations can vary.