Last Updated on April 12, 2023 by cryptocreed
With the rise of digital assets, many industries are pivoting at least some of their attention toward the possibilities of using this innovative new payment method to facilitate transactions on their websites. However, accepting cryptocurrencies can be a grey area; online cryptocurrency casinos are accepted, but no physical casinos will accept cryptocurrency payments.
That is unless you’re in El Salvador, one of only two countries where cryptocurrency is accepted as legal tender. A US Bitcoin casino works similarly online; it’s just that a physical casino based in the States won’t accept your digital currency as a legitimate form of payment.
So today, we will explore how this new digital payment method shapes up against its old traditional counterpart and whether companies that do not operate a facility where you can gamble with cryptocurrency should be concerned about the rise of these digital institutions.
Crypto vs Traditional Currency at Online Casinos: Which is Better?
While there isn’t a definitive answer to this question, we can give you several positives and negatives about each that may help you make an informed decision. Cryptocurrency gambling is a niche that’s still in its formative stages, and there will be a lot of tweaks and advances made to it over the next few years.
As we know, traditional currencies are a more established way to gamble. Your approach to casino gaming will dictate your chosen payment method, but let’s break down a few key areas.
Cryptocurrency regulation is massive news at the moment. With the SEC (Securities & Exchange Commission) taking such a vicious aim at projects within the cryptocurrency space, it is an uncertain time for investors looking to capitalize on this innovative and groundbreaking sector.
Regulation could be the make-or-break moment and it could shape the industry as a market-leading piece of disruptive innovation or relegate it to the history books. That said, it looks like the United States might be the place that will miss out the most if they bring in harsh regulations.
Many other countries are looking to provide an advantageous base for cryptocurrency and blockchain companies, so it is unlikely it will disappear; the United States simply won’t be the market leader anymore. However, this works the other way too.
If the regulation is firm but fair, it could springboard cryptocurrency projects and businesses⎯such as cryptocurrency casinos⎯into the mainstream. However, as it stands now, we would say that traditional currencies have the edge in this department.
While many besmirch cryptocurrency anonymity as a way that cybercriminals can funnel their illicit gains, some benefits of it aren’t as well known.
For instance, anonymity prevents you from worrying about hackers stealing or using your personal or financial information. In addition, if you gamble using cryptocurrency, you can connect your wallet to the site and transfer your digital assets peer-to-peer.
While your wallet details are visible, they aren’t identifiable, so in the effect of a breach, neither you nor the casino provider will feel the impact of a data breach. We must say that cryptocurrency casinos draw a level on this anonymity aspect.
If you’re opening your web browser on your phone or laptop to find casino gaming, you won’t have to look far. But unfortunately, it is a case of quantity over quality, and the market has become highly saturated.
However, traditional currency casinos have more variety because they dominate the market. Cryptocurrency casinos have a wide selection, but they’re outnumbered at the moment due to the number of traditional currency casinos they compete with. So, in terms of game selection, we would have to choose conventional currency casinos.
Speed of Transactions
This is a close one. Given that traditional online casinos offer a vast array of different payment methods, the transaction speed can vary wildly. However, casinos understand the importance of providing a platform whereby customers can deposit their funds without hassle.
However, this doesn’t stop many casino players from having issues with traditional currencies. Banks have a right to be cautious; gambling can turn into a problem for a small minority, so the fact that they occasionally screen transactions shouldn’t be a bad thing.
You can use other payment methods⎯such as credit cards and PayPal⎯to gamble, these have similar protection levels. If you are looking for a method that works quickly, with no questions asked, then cryptocurrency casinos win this battle. However, you will need to weigh up all the variables.
Crypto casinos draw level on this point, but it is extremely close. So, it’s a dead heat going into the final deciding section.
We have already briefly looked over this point; when we touched on the protection you get from the anonymity of cryptocurrency gambling. It’s another close battle. Traditional casinos know that a minor glitch or a confidential customer financial information breach could immediately end their business model⎯some of which have been developed over multiple decades.
Spending on security and firewall software is paramount for many traditional casinos, and it is usually one of the highest and most sustained costs the business will face.
In addition, established online casinos that use traditional currency will often use the same levels of firewall protection that you can find on online banking, which should indicate how highly they place it on their priority list.
Cryptocurrency casinos arguably take it up to another layer of security. Despite plenty of stories in the media that stir up the idea and feed into the rhetoric that cryptocurrency is unsafe and you could have your assets stolen, this isn’t the case. Unless you provide your wallet keys to somebody looking to steal funds, or you connect them directly to a rogue agent or website, there isn’t any way that your funds can be misappropriated.
If the casino suffers a breach, your cryptocurrency wallet doesn’t contain any information that will make you identifiable to hackers. It is simply a bunch of letters and numbers that make up your wallet, and they cannot do anything with this information. So, for this section, we give the point to crypto casinos, which gives them a tight 3−2 victory.
Cryptocurrencies Used by Online Casinos
As the industry is still finding its feet and growing in momentum, one of the main negatives about cryptocurrency casinos is that there are nowhere near as many as their traditional counterparts. The number is growing, but they’re still far behind with regard to available platforms.
While it is true that many are springing up, and that it’s becoming easier to gamble with cryptocurrency, only a few years ago, there were only a handful of cryptocurrency casinos and you could only use Bitcoin. Nowadays, there are a few options and a few different types of games you can play.
As the most visible digital asset on the market today, and by far the most well-known among casual investors, Bitcoin is the payment method behind the first established cryptocurrency casino. Although it is incredibly volatile, the liquidity and visibility have made it a guaranteed choice for casino operators looking to explore fresh territory regarding payment methods.
It is still the most popular way to gamble using cryptocurrency. Some altcoins have started to enter the market, with varying degrees of success. However, much like in the real world of digital asset investment, Bitcoin remains the number one, and given that you can buy and sell it on so many platforms, it is clear why it remains at the top of the podium.
As the top altcoin on the market, Ethereum is a huge name. It has far more use cases than Bitcoin. Even though Bitcoin is a more prominent name and usually sees more activity over 24 hours, there’s no denying the utility that Ethereum has in the cryptocurrency space.
You can use Ethereum at some cryptocurrency casinos, but as we touched on in the previous section, Bitcoin remains the number one choice for many cryptocurrency gamblers.
It’s hard to conceive that the original whitepaper for Litecoin was drawn up over a decade ago, back in 2011. Heavily inspired by Satoshi Nakamoto’s Bitcoin creation, Litecoin has had a far more turbulent ride than many other cryptocurrencies. However, it has stood the test of time, and it is another cryptocurrency you can use if you’re partial to online casino gaming.
The list of available cryptocurrencies that you can use to gamble with will continue to grow over the next few years. This growth will depend on a few different variables. If the United States can set out a transparent and fair set of legislations for cryptocurrency, we could see this specific area of gambling flourish and start to challenge traditional currency casinos.
We have already shown some components where cryptocurrency casinos are more efficient for customers. As the technology continues to improve, and more casino operators begin to view the immense possibilities afforded to them by blockchain technology, we could be at the precipice of an industry that could dominate the landscape fifteen to twenty years from now.