How Cryptocurrencies Became a De-facto Payment Method for Online Gambling

From humble and often controversial beginnings, cryptocurrencies have evolved to make a significant mark in the consumer mainstream. This is borne out by the total market capitalisation of the crypto market, which peaked at $237.1 billion in 2019.

While bitcoin has historically dominated this market, there are now a number of trusted and viable cryptocurrencies available to consumers. As explained by bestcasinosites.net, many of these entities are safe and incredibly secure, and capable of underpinning comprehensive payment platforms.

In this post, we’ll explore the crypto market in further detail, while asking how digital tokens became a common payment method for online gambling.

What is Cryptocurrency and How Does it Work?

Bitcoin remains the poster boy for Bitcoin, which first emerged in 2009 and has overcome a rocky and controversial past as the former currency of choice for criminals on the so-called Silk Road.

However, as Bitcoin has evolved to serve a range of markets and underpin several different types of wallet, it has also blazed a trail for other tokens to follow in recent times.

Essentially, all crypto tokens represent a form of digital currency, which is powered by blockchain technology and capable of providing a virtual source of wealth. This ensures that they’re decentralised and not manipulated by central banks, creating a list of immutable transactions that are safe, secure and completely transparent.

In the case of Bitcoin and similar tokens, individual coins are ‘mined’, which requires people to check and review individual transactions to guarantee the validity of the ledger.

In exchange, miners are rewarded with a predetermined number of coins, with approximately 17 million of the 21 million available Bitcoin tokens having now been claimed overall.

In addition to being the first cryptocurrency, Bitcoin is also the single most famous token in the market, and the first to have been adopted within the iGaming space. However, other currencies have stolen a march in this market in recent years, with the fast-growing Ethereum offering a relevant case in point.

Ethereum platforms have also become synonymous with the ground-breaking concept of ‘zero house edge’ casinos, which have the potential to introduce completely transparent gaming that does away with the historical advantage held by casinos.

How has Cryptocurrency Evolved to Dominate the iGaming Space?

Clearly, there’s a clear and inherent link between cryptocurrencies and online gambling, with several platforms capable of reinventing the iGaming experience in the digital age.

Even on a fundamental level, it should come as no surprise that cryptocurrencies have evolved to take the iGaming market by storm as a cutting-edge payment option. After all, various tokens offer an array of advantages to gamblers, including both casual and serious players.

To begin with, each crypto transaction is both immutable and anonymous, with the latter meaning that it isn’t linked to any bank account or credit card. Instead, your tokens are stored in an anonymous and standalone wallet, which only needs to be linked to an anonymous email address.

This benefit isn’t even available through popular e-wallets such as PayPal, which can be directly linked to a users bank account or Visa debit card.

The same principle can be applied to e-wallets such as Skrill and Neteller, which may also draw funds to a credit card or bank account. This undermines the anonymity of these payment methods, enabling cryptocurrency to stand apart from the majority of its rivals in this respect.

Of course, some of you may not be too exercised about the concept of anonymity, particularly as most iGaming transactions aren’t overt when they’re listed on bank accounts or credit card statements.

However, these payments will be apparent to certain people or financial experts, and this can cause issues when applying for unsecured credit or a mortgage. So, the anonymity offered by crypto tokens can help you to avoid such issues and indulge your passion for online gambling freely.

Cryptocurrencies also process quick (and often cheap) transactions, which is ideal when looking to credit an iGaming account or withdraw winnings. The cost implication is also important, especially as some online casinos charge a nominal fee when you withdraw funds through traditional channels.

Of course, the lack of a central authority means that most cryptocurrency transactions will be processed completely free of charge, helping you to retain as much of your bankroll and subsequent winnings as possible.

Ultimately, Bitcoin and cryptocurrency casinos are cheap, convenient and secure, while they also boast the kind of transparency that gamblers crave in the digital age.

After all, there remains a significant trust issue between players and some iGaming operators, so increased transparency can play a huge role in correcting this problem.