There’s always something new at the casino, but it’s not often that it’s a payment method, especially one that has the potential to dramatically transform how we store and spend our money. From the first online payment system that allowed for bank transfers and card payments, to e-wallets and now cryptocurrencies. There’s a revolution in banking and payment methods taking place.
Based on the latest tech, blockchain and BitCoin are names you’ve probably heard, or in the case of the later, begun to see listed as a new online casino payment method, but do you understand them and the impact they are having to the world of online gambling and banking in general?
Keep reading as we’ve going to cover it all for you right here at Slotsbots.com as we take an exclusive look at cryptocurrencies and crypto casinos.
In this new casino payment methods guide, you’ll learn:
- What are cryptocurrencies
- How do cryptocurrency work
- Whether mining crypto is worth it
- How crypto works at the casino and fair gaming
- The advantages of using crypto at the casino
- Finding a cryptocurrency casino where to play online slots.
New Digital Payment Methods: What is Cryptocurrency?
A cryptocurrency is a virtual currency, it has no physical presence, but is as valuable as real cash (some may argue more so) and can be used at newer or more adventurous online casinos.
Cryptocurrencies were designed to be a safer and more secure way of trading or storing wealth. Cutting out the middlemen (the banks) in a decentralised model, saving time, and money for the customer, who doesn’t need to pay transfer fees or worry about tax and political interference- crypto has an obvious appeal, but how does it work?
How Do Cryptocurrencies Work?
Cryptocurrencies use peer to peer technology called Blockchain. This is a shared digital record or ledger that runs across a network of computers. A transaction is only considered valid when approved by the network. To prevent double transactions (the spending of the currency twice, normally this role is filled by banks and payment gateways), ‘miners’ approve all transactions, checking the sender has the balance and sending the transaction out across the peer to peer network to be added to the blockchain ledger.
Miners are rewarded in cryptocurrency for fulfilling this role, creating an incentive for the self-management, by users, of the currency, and ensuring all trade is recorded by all peers and transaction legitimacy is achieved- this is the decentralised model. Cryptocurrency traders can, therefore, buy some of the currency to get started or earn it via the upkeep of the network.
Every member of the cryptocurrency gives part of their computer space for this use, allowing the network to be established. The digital ledger and transactions can only be read by members of the network, establishing security and transparency- the only downside possible- human error or hacks. However, due to the complexity of the system, these are easily identifiable and rectifiable.
Users send money via the use of their private key, which identifies transactions to miners to approve. To confirm the transaction they must crack a code, which takes energy, as it involves competing with other crypto miners to solve difficult mathematical problems with cryptographic hash functions that are associated with a block containing the transaction data.
Is Cryptocurrency Worth Investing in and Spending at the Casino?
Bitcoin, the most popular cryptocurrency, was also the first. Invented in 2009, a decade later, it is now being adopted into a payment system at some online casinos (along with other cryptocurrencies).
But let’s take a quick look at the journey Bitcoin has taken. From day 1, miners earnt their currency shares, with block 0 worth 50 bitcoins. Today, in the cost of electricity alone, the cost to mine just 1 bitcoin is huge, because of the growth of the currency.
Take a look at this Elite Fixtures energy cost to mine a single Bitcoin for your location. At the current worth, a single Bitcoin grosses over $8,500, so from pretty much any country you’d stand to make a profit from Bitcoin mining and then trading. This also provides the incentive to continue mining them and driving their use and worth, continuing to strengthen and build the chain and therefore, in turn, providing more work for the miners.
However, bear in mind that you’re only earning if you’re quick enough to crack the code or you’re buying your crypto straight from an exchange. Additionally, critics have said that the methodologies employed to calculate the cost of electricity projections of mining are often unpublished and there are climate concerns about the amount of energy the mining of cryptocurrencies creates.
Furthermore, there has also been concern raised over new payment methods and money laundering, with new governments discussing new measures and regulation- so there are some concerns to read up on in association with the use of crypto.
On the flip side, with so much profit to be gained from joining peer to peer currency networks, it’s easy to understand why they are soaring in popularity with Bitcoin, Litecoin, Ethereum, Dogecoin and Monero being the most popular new payment methods at casinos.
New Payment Methods 2019: Cryptocurrency Casinos are on the Rise
A cryptocurrency casino is one that accepts cryptocurrency as a method of depositing and withdrawing to and from your casino account. These are relatively easy transactions, just as if you were paying by any other means, except you’ll use your private key to pay and receive money and somewhere in the depths of the internet miners will be competing to crack the code and process the transaction, which is why crypto payments are so fast.
Different casinos will offer a different range of crypto options, but the majority of casinos with only offer Bitcoin, Litecoin, Ethereum, Dogecoin and Monero. Cryptocurrencies take gambling to the next level, offering the chance to make bigger profits through mining and trading whilst gambling with a real-money currency at the casino. Players love it and as a result, crypto is on the rise worldwide in casinos.
Is Crypto Fair? Provably Fair Gambling
To identify themselves as fair casinos for crypto use and exchange, “Provably Fair Gambling” is employed. It is an algorithm that verifies the website’s authenticity using cryptographic hash functions- essentially, the tools miners users to verify transactions and your crypto casino of choice will detail is they use Provably Fair Gambling, so be sure to check the site before you load up your account balance with crypto.
Advantages of New Payment Methods: Cryptocurrency Casino Transactions
- Speed: Cryptocurrency deposits and withdrawals cut out the middleman and are processed almost instantly for both way transactions, unlike other payment methods which may take up to 3 days to see the cash in your account, crypto is lightning fast.
- High Limits: On top of instant transactions they also have the highest limits of all transaction methods as they are decentralised.
- Anonymity: As crypto is a completely anonymous currency, you won’t need to trust the casino site with any sensitive information to make transactions, this is a massive security plus for many crypto casino players, but for more ethical players, anonymity may be a worrying factor.
Looking For a Crypto Casino?
At Slotsbot.com, we’ve already rated and reviewed the best online casinos for UK players, but as cryptocurrency casinos are very much a new thing, casinos have been slower to catch on so you have a relatively limited choice if you’re looking for a crypto casino. Currently, our top pick is Mansion Casino. Read the full review and get your exclusive 100% matched deposit joining offer!