Some facts about bitcoin
It is believed that bitcoin seems to be tailored for online casinos, and due to its opportunities and characteristics it ideally fits gambling projects. Let’s see why it is true.
Bitcoin is a peer-to-peer payment system that uses payment unit of the same name. Cryptographic techniques are used for its maintenance and protection. All information on transactions between addresses of the system is generally available.
Cryptocurrency, virtual currency, digital currency, e-cash – bitcoin has many names, which hide those main characteristics that make it the most appropriate for application in gambling:
Speed. Players often take a dim view of getting their winnings paid. This is one of the main problems in the relationship between online portals and their users. In the case of bitcoins all withdrawal transactions are processed momentarily and seamlessly. There are no intermediaries between sender and receiver such as banks or payment systems, which can delay withdrawals due to verifications or other regulatory aspects. Bitcoin transactions are made directly and are as simple as sending an email.
Anonymity. High level of confidentiality is insured by virtue of privately created bitcoin addresses via wallets of users. As a matter of fact, only this address is tied to all conducted transactions. Currently, you can find different systems that provide total anonymity of bitcoin operations such as hidden addresses, Dark Wallet, Darkcoin, etc.
Minimal fee. Currently, a large number of transactions are handled without any fees. In comparison with traditional payment systems the fee is very low.
Fairness. Player has an opportunity to check the fairness of games. Bitcoin casinos have a special system called Provably Fair that controls the fair play with the help of mathematical framework of hash signatures for ensuring equal odds of players.
Bitcoin casino statistics
Statistics of search queries shows that popularity of bitcoin casinos in the world has increased greatly during the last 3 years:
Age related index of using bitcoin:
The average age of the most active bitcoin users is 32 years. Typically, those are men that have upper-middle level of income and higher education.
Target audience of an online casino is quite exacting, well-informed on peculiarities of dealing with cryptocurrency, understands the whole operating procedure of bitcoin casino websites. Therefore, software has to insure seamless operation of resource.
Geography of bitcoin usage:
Undisputed leader according to ‘bitcoin casino’ search queries is the USA:
It was this country that gave birth to the currency of the future, as bitcoin is frequently called, and where it is most widely used. The United States actively develops this sector, providing for exchange offices, exchange markets, ATMs. In some states cryptocurrency is accepted even without exchanging.
New opportunities for online casino operators
There are two ways of integrating bitcoin currency in online casino:
- Development of specialized bitcoin casino.
- Adding bitcoin as an additional payment method along with traditional ones.
Today bitcoin casinos comprise 10-15% from the general amount of all existing online institutions. This number is expected to grow to 20% by the end of 2016.
Decentralized system of bitcoin casinos allows players from countries that are restricted or banned from running gambling activities to play.
Why operators prefer bitcoin casinos:
- Quick launch of the project. The shortest period comprised 10 days thanks to the fact that there is no need to integrate payment systems.
- No transaction fee. There are no fees for bitcoin transactions (traditionally fees are paid by casino).
- Opportunity to monitor transactions. All conducted operations can be tracked via special system.
- No frauds. Bitcoin operations are non-cancelable: once a transaction is processed, it cannot be reversed.
- No need for license.
Bitcoin casino operators can undergo the following risks:
- Double bets. Currently, there are technical capabilities to eliminate this risk.
- Uncertain regulation. Absence of legal control. Authorities have mixed feelings about bitcoin and it’s impossible to predict the further development of bitcoin online casino industry. In some countries bitcoin is totally banned: China, Russia, and Bangladesh. At the same time in such online casino jurisdictions as Isle of Man, Montenegro, and soon in Malta it is considered a currency.
- Hacker attacks. There was a boom of hacker attacks on bitcoin exchanges in 2014. A large amount of bitcoins was stolen during that time. Consequently the security of this currency was shaken. Today there are many security systems that ensure reliable operation of bitcoin system.
Future opportunities for bitcoin casino operators
Bitcoin casinos will be developing and changing. Their target audience will become older, as it usually happens – at first innovations interest advanced young enthusiasts, and then the audience grows bigger and covers other groups of users.
Thanks to being decentralized bitcoin casinos will develop without reference to a certain region, projects will be globally oriented. In European countries bitcoin has been considered as a convenient alternative to traditional currencies for quite a long time. The same process is common for jurisdictions that issue online casino licenses.
Reputation of this currency is improving year after year, new systems for advanced anonymity and new technical capabilities for protection against hacking appear, therefore it may safely be said that the future of gambling industry belongs to bitcoin.