The Real Advantages
Cryptocurrencies and specifically Bitcoin have taken the world by storm, back in 2009 few understood the use and necessity of a cryptocurrency, those who invested early in Bitcoin did so mostly out of curiosity in the blockchain technology behind it, but probably never felt the concept would take off.
The Role of Cryptocurrencies in the Gambling Industry
Those early investors are now millionaires and probably very grateful they indulged their curious side. A few years ago, Bitcoin started making an appearance as a form of payment, mostly in black market transactions, however, once the public understood its value and ease of use, more industries started embracing the new currency.
Understandably, online gambling was the perfect growing ground for the use of cryptocurrencies, these days it’s a great form of investment, so just about anyone you know who has a few dollars to spare has bought some bitcoins, this makes it not just socially acceptable but so common that nobody questions it anymore, giving gamblers a great cover for their preferred form of entertainment.
This is also a great benefit for bookies who need to move funds around to pay their price per head services. Finding a bitcoin bookie service is still not as easy as one would imagine, most pay per head services are slow to adopt new technologies, thankfully there are some services like www.AcePerHead.com have been wise enough to embrace the new technology and found a way to make it work for them and their clients.
Although cryptocurrencies have been in the news just about every week for the past year, some don’t really understand what it is and what benefits it can provide them, for this reason, we will start with the basics, and hopefully, by the end of this article we will have successfully answered all the questions.
What are Cryptocurrencies?
Bitcoin, Ethereum, and Litecoin are the leading cryptocurrencies right now, the concept of a digital or virtual currency is not new, back in the 90’s there were numerous attempts to create a widely used cryptocurrency, however these all failed because they used the “Trusted” third-party approached, meaning there was a company or institution backing the operation and controlling it, therefore the entire process depended on the stability of the entity controlling the transactions, if it failed or was in any way compromised the entire system failed with it.
Bitcoin’s approach was completely different, the aim of its creator was to forego the influence of any third-party. Today’s cryptocurrencies are designed to work as a medium of exchange, they all use blockchain technology, which is an advanced encoding algorithm that secures and verifies all transactions. The blockchain technology is also responsible for creating more units of the cryptocurrency as needed.
This means that cryptocurrency technologies are not regulated by any bank or government, instead in the decentralized network of Bitcoin, for example, each participant plays the role of controller, this is done by the blockchain which is essentially a ledger of every transaction ever done within the network, this information is available to everyone, this means everyone in the network can see every account’s balance.
I know what you are thinking, how is this a good idea? I don’t want anyone knowing how much or how little I have. This is a very valid concern, but, there is nothing to worry about, although everyone can see how many bitcoins exist, there is no personal information associated to each account, therefore you have no idea who is the current owner of the bitcoins or where they live, or who they have made or received payments from.
This brings us to the first very important benefit of cryptocurrency use in online gambling, anonymity.
Benefits of Bitcoin and other Cryptocurrencies in Online Gambling
One of the biggest problems online bookies face these days is regulation, due to federal and state regulations in the US most people are prohibited from engaging in online gambling. While most governments are incapable of stopping anyone from accessing a website located outside of the US, they can control money transactions through the financial institutions.
Because Bitcoin is not regulated by any financial institution or government, it makes it the perfect solution for players and bookies across the US. And because the cryptocurrency market has become so popular and is now widely used in e-commerce, it is unlikely that any government will be able to shut it down.
- Benefit #1
Bitcoin itself does not require any personal information from its users, there is no need to provide proof of identity or to create an account, these, however, may be required by the platform used to enter the bitcoin network.
But these platforms are only a medium to enter the bitcoin market, once you are in, to quote the popular HBO show Game of Thrones, you become no one. You can buy or sell bitcoins, transfer, or receive them as a form of payment in complete anonymity. It is virtually impossible to even pinpoint where the transaction was originated, or who the final recipient was.
- Benefit #2
Because of there is no third-party involved in any transaction this makes it Bitcoin and the other cryptocurrencies like Ethereum and Litecoin, transaction fees are much lower than traditional fiat money processors (fiat money is any legal tender currency established by a central government).
Lower transaction fees make cryptocurrency extremely appealing as other traditional forms of payments accepted by price per head companies like Western Union, Money Gram, Pre-Paid Cards, and Gift Cards can sometimes turn out to be quite expensive.
- Benefit #3
Instant Deposit Times
Once you complete a bitcoin transfer this is received in real-time and can be verified immediately. Traditional payment methods sometimes can take from a few minutes up to a few hours or days to verify the payment, this is incredibly frustrating for bookies who want to make their payment and get back to very busy schedules.
- Benefit #4
Circumvents Any State or Federal Payment Restriction
I know I’ve mentioned this before in the article, but I feel it is important enough that it bears repeating. Governments cannot prevent anyone from surfing the net, and with Bitcoin, they won’t be able to prevent agents from receiving or sending payments to their players or pay per head services.
Bitcoin has come to revolutionize the world and in simple terms, it may be the godsend that many local bookies were praying for, it single-handedly eliminates all paper trail and liabilities in money transactions within the US.