Pros and Cons of Bitcoin Gambling Online
If you’re an online gambler and you want to find an alternative option to the standard currency, then perhaps utilizing Bitcoin for both funding and playing will cater to you. Yet if you haven’t ever used it before, then it’s important to understand not just about the cryptocurrency but all about its pros and cons. That’s why we’ve brought together this section of our website – to make sure that you’re fully informed on everything that Bitcoin has to offer. So, without further ado, let’s take a look at some of the pros and cons relating to the use of the Bitcoin cryptocurrency.
If you’ve played at online casinos and sportsbooks before, you’ll know that there’s generally a decent enough selection of payment methods to use. This usually spans through credit cards, e-wallets, prepaid cards, and online banking options. However, one of the issues that some people have with using these payment methods is that they’re not completely anonymous. In other words, you have to have certain personal data revealed while utilizing such. And even if not to the gambling platform that you’re playing at, then potentially to the e-wallet or middleman that works to send your money to the site.
With the Bitcoin option, all of your transactions are anonymous. This is perhaps the greatest advantage of using Bitcoin, not just for gamblers, but for anyone. The level of privacy that you get when you choose to utilize the cryptocurrency is so much higher than any other type of payment method. The only time that you may have to provide your personal details is if you choose to purchase Bitcoin by credit card or other standard payment methods. Of course, this is not information that is shared with the online gambling site.
Due to the fact that a transaction utilizing Bitcoin only requires wallet addresses to process it – the address of your wallet and the address of the casino wallet – you aren’t exchanging any personal data with the platform. So, in this respect, you can deposit with the cryptocurrency with the added benefit of total anonymity.
2. More Possibilities for US Gamblers
The US gambling community is large within itself, although there are certain restrictions in place from state to state that don’t provide as many options for such players. This relates to both online platforms that are joinable by US citizens and payment methods that are available.
Because of the simplicity of using Bitcoin for both US and non-US citizens, there has been an increase in online platforms accepting deposits made this way. Additionally, because of this, there has also been an increase in the number of US citizens purchasing Bitcoin so that they can deposit at online gambling sites.
3. Fast Transactions
We all like to be able to deposit into our chosen casino or sportsbook instantly and start placing bets, right? It is, after all, what we’ve signed up to do. One of the most inconvenient and frustrating things is to have to wait to be able to play on your favorite games because your deposit hasn’t processed through yet.
Granted, most deposit options these days are usually instantaneous, with the exception of a small few. This is not always the case when it comes to withdrawals, though. Most of the time, a withdrawal will need to be processed by the gambling site itself and then go through a route of intermediaries reviewing such. Yet this is not the case with Bitcoin withdrawals.
Again, because of its decentralized status, everything relating to this cryptocurrency is done on the internet. Therefore, if the platform you’re withdrawing from has already verified you, it’s quite common to receive withdrawals in Bitcoin within about 10 minutes.
This is a vast improvement over other payment methods, some of which take up to five or seven business days to fully complete. The withdrawal of your funds should be just as swift as the depositing of such, and Bitcoin is able to provide one of the quickest services for both depositing and withdrawing at your chosen platform.
4. Specialized Promotions
This isn’t something that can be stated for all online platforms, but you’ll sometimes be able to find sites that provide special offers specifically for Bitcoin users. Furthermore, it’s often the case that these promotions are much better than those that relate to deposits made with standard payment methods. If we’re all able to benefit from something that’s generally a bit better than the norm, then why wouldn’t we utilize Bitcoin to receive a great deal?
So, it’s advisable to check the promotions page of your chosen platform if you’re intending to utilize Bitcoin. You may just find that there’s a great special offer available for you to take advantage of in this respect. Often, these can have maximums of 1 or 2 BTC that you can claim in bonus funds.
1. Fluctuation of Value
The Bitcoin market is such a volatile one that the price of the cryptocurrency can very swiftly change in either direction. If it’s not at a steady rate and you opt to convert your fiat currency into Bitcoin, then you may end up receiving a lot less and spending a lot more.
Granted, it’s also possible for the value of Bitcoin to improve in value, although the fluctuation of value has been placed as a con because it’s such a tricky part of the cryptocurrency to estimate. Any number of things can trigger a fluctuation in value, and this can happen so rapidly that you won’t have much time to do anything about it.
In this instance, how are you going to feel if you convert $500 into Bitcoin when it’s at a reasonable price, and you then decide to deposit this Bitcoin into an online casino, only to find that when you withdraw it to your Bitcoin wallet and want to convert it back to USD, the value has gone significantly down? This is probably the biggest disadvantage of Bitcoin for the time being – the fact that it can be so unstable.
2. Slow Transactions
This may seem completely contrary to what we wrote above about Bitcoin transactions being considerably faster than standard payment methods. However, it’s not always the case that this happens. Sometimes, transactions using Bitcoin can take longer than e-wallets or credit/debit cards, for example.
This is mainly in the case of withdrawals because some online platforms choose to process Bitcoin withdrawals manually. This is generally for security purposes, meaning that you may end up waiting several days for a Bitcoin withdrawal to fully process through and be reflected in your balance.
As stated earlier, we as gamblers prefer to experience swift deposits and withdrawals, and if you’re ever waiting for a long period of time in relation to either of these, it can get frustrating. Often, this won’t be the case, but just be aware that sometimes a Bitcoin transaction has the potential to take longer than standard withdrawal.
3. Digital Currency Issues
The online world is a great thing for many reasons. Yet it still has the capacity to fail within an instant as well, meaning that a collapse is imminent. Bitcoin, being an online entity itself, also has the potential to suffer such a collapse. In fact, it’s been thought that the cryptocurrency would go under on several occasions. You only need to look at its vast price drops at several moments in its history to realize this.
This remains as one of the reasons why it’s safer to store your Bitcoin in an offline wallet. Yet this is not possible when it comes to funding an online gambling account. So, let’s say that you have deposited some money, and you’ve played a few rounds of a game. Your balance is growing nicely. What happens if the casino then goes under? Or if Bitcoin itself goes under? Can it be guaranteed that you’ll receive a refund of any lost digital currency? After all, it’s a virtual currency, not something physical.
Any number of issues could cause the Bitcoin blockchain to collapse or even significantly depreciate to the point of becoming useless. This weighs quite heavily against the cryptocurrency, and it’s definitely something to remember when choosing to utilize it.
4. Extra Fees for Currency Conversion
It’s true to say that using Bitcoin to deposit and using Bitcoin to play online gambling games are two different things. We say this because some platforms allow you to do both with the cryptocurrency, while others only allow for depositing in Bitcoin.
This may seem quite confusing, but essentially, what will happen when you are able to deposit in the cryptocurrency but not play in it is that it will be converted into a fiat currency.
If you opt to deposit 1 BTC at an online casino that doesn’t allow gaming in it, this will be converted into Euros or USD or any other accepted currency of the site. The gambling platform may charge a certain fee for going through this currency conversion on your behalf.
On the other hand, it’s also fairly likely that you’ll need to pay conversion fees if you opt to purchase Bitcoin via an exchange prior to depositing at a gambling platform. Likewise, when you want to convert your Bitcoin back into fiat currency, the same fee will most likely occur. Conversion fees will differ from exchange to exchange or casino to casino, but in this respect, you’ll be paying something extra for simply wanting to use the Bitcoin option.
5. Unlicensed Bitcoin Casinos
Where there’s potential for scamming people, you can always guarantee that there’ll be someone waiting to take advantage of it. This being the case, there are several online sites available that do not hold a license and therefore do not work under any kind of regulation. Due to the fact that Bitcoin transactions are totally anonymous, casinos providing such a deposit option can also operate in the same sense – anonymously. Without a license or regulation to work to, your Bitcoin currency is at risk.
Of course, scamming people is also something that affects fiat currency platforms, so it’s not exclusive to Bitcoin transactions. The best route to take is to ensure that you locate a high-quality Bitcoin casino, rather than accepting something which turns out to be a scam site. Look for a reputable gambling site that accepts Bitcoin, rather than one which is throwing deals out at players here, there, and everywhere.
Like anything, Bitcoin gambling has its advantages and disadvantages. Therefore, it has to be a player’s sole decision as to whether they wish to make deposits and place bets utilizing the cryptocurrency or not. If you’re informed of all the pros and cons relating to it, then you can make a knowledgeable decision.
As long as you remain alert and know what you’re doing, then many of the cons don’t pose such a huge threat to you. The most important is to remember the volatility level of Bitcoin and act on such when it is of a benefit to you. Furthermore, if you seek out a licensed and renowned online casino, sportsbook, poker room, or whatever you’re looking to wager on, you shouldn’t have any issues.