Why Do Casinos Accept Cryptocurrency?
The Use of Cryptocurrency in Online Gambling and Online Casinos
Many online gambling sites like Vulkan Vegas now accept cryptocurrency as a payment method. The two most accepted ones are Bitcoin and Ethereum. The question that lingers in the mind of people is: is it safe? In addition, why is it that casinos now accept these digital coins as a mode of payment?
Yes, it is safe. Casinos are shifting to this currency because of the ease of transaction and profitability. The thing is that cryptocurrency is volatile, which means that there is also a risk involved. Today, we will discuss the benefits of using cryptocurrency in the online gambling scene.
Security of Payments and Transactions
Cryptocurrency payments are highly secure. They use SSL or encryption, and all the users who participate in the transaction validation ensure that the ledger is accurate and impenetrable.
Cryptocurrency is called that way from the word “cryptography.” All transactions here use a high level of encryption, probably safer than a bank’s security system. You cannot alter the transaction because all the participants keep a record of that ledger.
Since crypto depends on blockchain technology, all participants have a copy of the digital ledger of transactions. In addition, the identity of each wallet makes up of many letters and numbers.
The thing with this level of security is that if you go wrong, you cannot retrieve the money you lost. If you sent that money to the wrong account, you cannot ask for a “refund.” It is so secure that there is no turning back — a transaction made is a final one. There is no way one can scam you by paying and filing a “chargeback.”
Faster Transactions for Anything
All cryptocurrency transactions are faster than anything that a bank can do. Sure, a credit card transaction may seem fast, too, but then there are bank processes that are super slow, like bank transfers.
In a typical bank transfer, you would have to wait three days for the bank to validate your transaction. If you make a casino deposit today, expect to play after three days — and this will only happen if the bank approves you.
Cryptocurrency, on the other hand, happens in a few seconds. Sure, there are online crypto transactions that can take an hour, but these are rare cases. If you compare this performance to banks, the cryptocurrency transaction is still way faster.
Because of this, both players and the casinos have leverage when it comes to turning cryptocurrency into cash. The player can easily deposit money to his casino account and play right away, with no approvals needed from a bank. He also does not have to deal with a denial from a credit card company.
The casino can also take advantage of crypto payments. All they have to do is convert the cryptocurrency into cash. They do not have to wait many days to convert the asset or wait for a validation process typical of a bank.
If you use traditional payment methods like Skrill or Neteller, expect to pay a huge fee for your transactions. The typical process is to transfer money to Skrill from a credit card and then transfer from Skrill to a casino — only if the credit card issuer denies direct casino payments.
You pay a fee if you transfer money to Skrill. That fee should be enough to allow you to place wagers on slot machines. If you use cryptocurrency, you can expect to pay lower fees.
Casinos also benefit from these low-cost transactions. Since the cryptocurrency world is decentralized, there is no way to dictate how much the fees should be. In a typical credit card, if Mastercard decides to increase its fees, that impact spreads to all merchants who accept credit cards.
Ultimately, a player and the casino can benefit from the low cost of transactions. The only challenge now is volatility. The cash value of a crypto unit right now can change in a matter of minutes. It is either the crypto changes go higher or lower — if it goes higher, then both the casino and the player are at an advantage.
Banks and credit card issuers are getting stricter when it comes to gambling. There are petitions from people who want financial institutions to stop gambling transactions, as gambling can wreak havoc on a person’s life. As such, there has to be an alternative to payment methods or casino deposits.
The best option right now is cryptocurrency. It is an unregulated financial world, and there is a certain degree of anonymity. The transactions are fast, secure, and the costs of fees are also affordable. In the future, we can expect that casinos will accept more cryptos than just Bitcoin and Ethereum.