Bitcoin is a topic on everyone’s lips; however, a while ago this cryptocurrency was an invention that was rarely used by average people. This was implemented in some food establishments and for some movements in the black market; so it can be said that this did not have enough popularity. However, since its launch in 2009, things have changed considerably, especially due to the fact that technology and Internet operations increasingly dominate the life of the human being.
That is why Bitcoin is being used more diversely and widely in industries.
So much has been its boom in recent years, which many discussions are held on the fact that possibly the cryptocurrencies, not only Bitcoin but some of those that have been created later, become the future crux of online transactions. This is mainly due to the decentralized processes in the approval that supports them. For this reason, one of the industries that have most implemented this virtual currency is online games, especially casinos.
In this sense, nowadays there are more players who know about this technology and even feel more secure and confident in the casinos that use it. Despite this, interruptions in online games have also been observed in various ways. In view of this, the following article has been created with the aim of describing how Bitcoin is shaking the gaming industry, focusing on the positive and negative aspects of it.
Strong fluctuation of players’ bankroll
The Bitcoin is seen as the gold model among all cryptocurrencies, this is because, in addition to being the first currency of this style, it became the most famous. Likewise, like the other cryptocurrencies, it changes drastically in the market. That is why one of the complications that arise from being Bitcoin players is that the value of the currency the next day is unpredictable, which can go up or down. In this way, the bankroll of the players one day can be worth 0.01 BTC and the next 0.08 BTC, and vice versa.
In the same way, when the Bitcoin price decreases, it is almost certain that the other alternative cryptocurrencies will be maintained, and they usually increase when Bitcoin does too. In this way, the funds of players who are playing with altcoins, such as Litecoin or Ethereum, will be affected by the variability of the main one. A clear and real example of this situation was presented in December 2017, when at the beginning of the month the value of this currency was $11,000 and that surprisingly increased to $20,000, this being a historical value.
Logically this was a positive variation for all players because their funds multiplied. However, that same month the value of the BTC was below $13,000, which resulted in the decrease of the bankroll of players by approximately 35%.
Online games have been forced by Bitcoin for recognition
Something that generates curiosity is that the online gaming industry was one of the first to venture into the world of Bitcoin cryptocurrencies being the beginning of everything when Satoshi opened its electronic dollars in 2012 and consented to the realization of a deposit in BTC. In the same order of ideas, the following year the game developer SoftSwiss devised its own method of processing advanced payments for the use of Bitcoin. From that moment the company began selling complete packages of casinos to companies and in this way their Bitcoin sites remain in operation.
Similarly, SoftSwiss is responsible for a large number of offshore gaming sites that work in areas without regulations, so these companies accept payments with Bitcoins and do not need to deal with the laws of some countries. To exemplify this situation, we have the United States, wherein 2006 the Law of Illegal Internet Betting Compliance (UIGEA) was decreed, which basically prohibits the banking entities of the country from controlling the operations of online games.
However, the UK Gambling Commission (UKGC) in 2016 decided to include Bitcoin in the regulated gaming industry. In this sense, they approved the cryptocurrency as a method of admissible payment according to the Circumstances of License and the Codes of Practice or LCCP, duly updated; which are designed to prevent money laundering or other murky actions from online casino companies.
On the other hand, the Malta Gaming Authority (MGA), which is another prefecture of highly respected international approvals, is debating the issue of Bitcoin since the UKGC approved it. In view of the admission into the United Kingdom and the proposition that other gaming regulators accept it, Bitcoin has penetrated the area of online gambling. In this way, there are many possibilities for the BTC to become as common as the MasterCard, the Visa, and the Neteller.
Bitcoin offers advantages in relation to the usual payment methods
The reason why Bitcoin cryptocurrency has become so popular in the world of casino games is that it offers several benefits highly valued by users. Among them are the following:
- Transactions have much lower rates. A very small fee is canceled to fix the Bitcoin workers. It is minimal compared to those generated by the use of traditional payments such as credit cards, prepaid cards, electronic wallets, etc. This is because the BTC is not run by a central company but rather works through the chain of blocks, which is like a public accounting book where each of the operations that are made is recorded.
- Withdrawals are processed faster. When you proceed to withdraw the money from a casino that works with BTC, the most you will have to wait for is 13 hours for the money to fall into your wallet, since Bitcoin does not need third-party verification, nor does it interrogate the transactions. While the most common withdrawal methods such as Neteller, Skrill or PayPal, take a couple of days or even longer because the operation requires verification by a third party from the company itself.
- For casino operators, Bitcoin turns out to be cheaper. This more than being an advantage for the players as such, it is rather for operators and online gaming companies. This is mainly due to the fact that offshore platforms are not required to obtain authorization to operate a betting website with Bitcoin since it is not controlled by banks or central governments. However, companies must acquire goodwill in markets that are regulated, such as those located in some European countries. In addition to this, all the operations carried out with BTC are conclusive, that is to say, that there are no returns for the online gaming companies.
- In offshore markets, players can use Bitcoin. In view of the fact that the cryptocurrency is not controlled by the government or by central banks, it is quite valued in offshore gaming markets. In this way, certain online casinos, sports betting houses and poker rooms come to base their operations entirely on Bitcoin which has been very good for users who live in countries with unregulated markets, such as the United States and Canada.
Governments are against the Bitcoin casinos
One of the main characteristics of Bitcoin is that both players and operators have the possibility to remain anonymous. However, the belief that all transactions with said cryptocurrency are absolutely anonymous is false; although it is true that the procedure to track them is more complex. That is why some governments have modified online betting regulations, among which are:
- The Czech The measure taken by this country was to increase the tax on operators of games that are not regulated; reaching the highest amount of the entire European continent. To begin with, they balanced on the tax with 35% on gross income. Likewise, it also demands another tax of 19% on collective invoicing.
- The Netherlands. The moderators Kansspelautoriteit or KSA, are currently locating gaming sites that operate with Bitcoin, in addition to other operators that lack licenses, so that they can throw them out of the market.
- There they have imposed a tax of 12% over the total income. They also have a standard in which it is possible to collaborate in the election of the members that make up the staff of a gaming site.
Some players are using the funds of their games to interact in the cryptocurrency trade
In addition to being used to place bets on gambling, in recent times has also been seen frequently that bids are made for what the market in the world’s stock markets. This is due to the variability in the value of Bitcoin and the other virtual currencies. That is why making investments in cryptocurrencies cannot be considered as a total bet, nor is it like playing in roulette or slot machines.
It can be a little more similar to the game of poker or sports betting, where you can use strategies with the aim of improving the average success. Despite this, a considerable amount of risks continue to be taken with respect to investments in cryptocurrencies in the short or long term. In this way, the most efficient way to invest in cryptocurrencies, be it Bitcoin or another, is to educate you about the mechanism behind it. For this, it will be necessary to read your clean book and understand the benefits of it.
Returning to the main idea of this section, many players have begun to spend the money from their winnings or their bankroll in cryptocurrency investments, which was originally intended to be injected into casino games. For this reason, Bitcoin represents a negative element for traditional casinos, because they have perceived lower volumes of players since the recent rise of digital currencies.
Although Bitcoin has become very popular in the games industry and its followers, it can be considered that even the world is not fully prepared to implement it as a secure payment method for games. However, this is something that will be seen later, because there is no doubt that said the currency is causing a high impact in the online gaming industry. And in addition, the players are taking advantage of and receiving very well the benefits that it provides them, among which are the lower transaction rates and speed in operations.
On the other hand, altcoins exist that little by little have opened their own way in the market, reason why it should not be strange if later this one arrives at the same level of the Bitcoin. Also, many gaming platforms are working on the development of their own block chains, so it is possible that they can create a unique cryptocurrency that can also be commercialized in the cryptographic market.