Cryptocurrency has experienced a drastic rise in popularity and interest throughout the world in recent years. Originally the exclusive domain of techies, programmers, and software developers, crypto has found a global audience of users. There are several reasons for its increased popularity, and for its disruption of some major industries.

Cryptocurrencies are made possible by an underlying technology called the blockchain. Blockchain is a system of publicly available digital ledgers that, in the case of cryptocurrencies, verify transactions between individuals. Rather than being controlled by any centralized authority, the ledger is verified using the computing power of all users of the system.

One reason why many investors have flocked to cryptocurrency and blockchain companies in recent years is that they’re able to provide secure transactions between users without any intermediaries like banks or governments. Instead, crypto users secure their transactions through a technological system of checks and balances called the blockchain.

In this way, transfers of money become free and instantaneous because there is no bank or other intermediary taking a transaction fee. Crypto proponents also claim that this form of value transfer is more secure since it is free from potential bad-faith actors like banks or governments that might be incompetent or corrupt. The implications for this are vast since cryptocurrency users can transfer value to one another instantly and freely.

Bitcoin was the first cryptocurrency to demonstrate these technological theories in practice and gain a global audience. To this day, it remains the most widely used cryptocurrency and has seen its value soar in a volatile way since its creation as a result.

Cryptocurrency users keep a digital wallet that contains their personal authentication key. Importantly, this key is the only thing needed to make or validate a transaction on the blockchain, making the use of cryptocurrencies completely anonymous. In other words, users need not disclose their identities or personal information to a bank or governing body to exchange value through crypto.

Given the benefits and the increasing popularity of cryptocurrency, it comes as no surprise that it is disrupting major industries, including the online gambling industry.

Online gamblers in particular love crypto for obvious reasons. Transactions and payouts can be made instantly and for free through cryptocurrency. In addition, cryptocurrency was very much the invention of internet power users, so those who enjoy gambling online can often learn how it works and how to use it quite easily.

Another perk of crypto for online gamblers is its anonymity. Players that prefer not to reveal their identity while gambling online can more easily refrain from doing so. When gambling online with traditional, government-backed currency, this is often more difficult. Traditional currencies generally require verifying individuals’ identities before authorizing transactions, something that the blockchain can make unnecessary.

Online gamblers sometimes prefer to remain anonymous for a variety of reasons. Many have a professional image to maintain and might worry that current or future employers could frown on even a responsible gambling hobby. Other gamblers might not want their former winning or losing streaks to be discoverable or known by others, and finally, some gamblers might simply value their privacy online.

Potential nefarious activity from hackers is also a concern for online gamblers. Users are increasingly hesitant to provide personal and financial information to third party entities since instances of identity theft are on the rise. In fact, the Federal Trade Commission reports that approximately nine million Americans are victims of identity theft each year according to the New York Times.

Privacy online has been a growing issue of concern for many internet users as the mass collection of users’ data by big tech companies has come under scrutiny in recent years. As a result, many users of online services, including online casinos, have to come to value the security of their data.

Check out this review for more information on one example of a casino offering gamblers a safe and secure way to play online casino games with a cryptocurrency.

There are of course some potential downsides to gambling online using cryptocurrency. The primary downside is the same one that applies to cryptocurrency as a whole. Since cryptocurrency is still a relatively recent invention, it hasn’t been subject to the same legal regulations as traditional currencies.

This presents a potential problem for all crypto users. Since no government currently backs the value and safety of cryptocurrency, users are potentially vulnerable to unexpected black swan events in the crypto markets. Crypto enthusiasts argue that the relative lack of regulations isn’t a danger due to the inherent security of the blockchain technology which underlies it, but others disagree.

This will, no doubt, continue to pose dilemmas in the future, as new cryptocurrencies are frequently being created, as reported by the Washington Post.

Many supporters of crypto also claim that existing regulations on capital markets are largely ineffective in any case, pointing to events such as the 2008 financial crisis as proof that regulations are often ineffective. Crypto skeptics rebut, claiming that a lack of federal regulations on the crypto markets makes them unpredictable.

Regardless of how effective regulations truly are, one thing is certain. Since their creation, cryptocurrencies have been more volatile than major global currencies like the US Dollar. The value of Bitcoin, for example, has experienced volatile ups and downs since its creation, and other popular cryptocurrencies like Ethereum have experienced similar volatility.

The volatility of Bitcoin and other cryptocurrencies is well-reported and acknowledged even by crypto advocates. It’s been widely reported by the media, as seen in this piece by the LA Times.

Defenders of Bitcoin and Ethereum maintain that this volatility has been due to cryptocurrency’s rise in popularity and adoption and that their values will stabilize and increase gradually given time. Still, it’s hard to doubt that there is some risk associated with buying extremely large amounts of cryptocurrency at one time since their values still tend to increase and decrease fairly quickly and dramatically.

By and large, online gamblers can reduce the risks of any volatility associated with Bitcoin and other cryptocurrencies by being responsible with how much they buy at one time.

Another reason online gamblers are turning to cryptocurrencies is that some online casinos offer perks and benefits for using Bitcoin. This serves as a good entry point for players that are interested in trying out gambling with cryptocurrency.

As a whole, cryptocurrencies provide more pros than cons when it comes to online gambling when they’re used smartly and responsibly. Players should have a general understanding and interest in how they work and should be interested in taking advantage of the many benefits they offer.

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