Blockchain Casinos – Cryptocurrency and Best Online Casinos
How to gamble with cryptocurrency?
In the past 4 years, bitcoin has gone mainstream, and with this crypto, several online casinos started to accept crypts. The main benefit of the blockchain technology being utilized in the casino, gambling, and the online betting sector is that it offers database transactions transparency.
Presently, we've got several new and forthcoming open-source lotteries, for instance, where the %RTP (retur to players) is normally kept undisclosed. And while the players are normally skeptical, probably thinking it was a scam website, making use of blockchain will allow them to see precisely the way they process transactions, solving this issue. Anytime you lose money when you gamble online utilizing blockchain, you can know the place it goes in the system. What this denotes is that you can see precisely the amount the site earns from the money you deposit, and the trustworthiness of the website.
As time passes, using blockchain in online casinos or betting will grow rapidly and become way more mainstream than it is now. We're already seeing several projects that continue to disrupt the space by making their infrastructure totally based on blockchain payments. With this, the players get total peace of mind and will become way more popular.
Blockchain: the challenges it solves
Several online gambling websites that host non-traditional games such as poker or blackjack aren't regulated by the bodies such as the UKGC (United Kingdom Gambling Commission) or the MFSA (Malta Financial Services Authority). If this becomes the case, these websites mostly provide no intelligence on the way they choose winners, who are presently winning, and if they return winnings to players. This is an indication that they may be a scam website.
This is resolved by blockchain as in this context it is a replacement for the need for these regulators. That's because of the transparency of transactions and blockchain technology, you can see anything that happens to your deposits and money, and also have visibility on the loss of players that have added to your wins. You'll also be able to know the amount that the website earns from every transaction, making sure that players don't feel cheated.
There's no huge intersection of individuals who are both interested in crypto and gambling. Gambling has been existing before we were born, whereas cryptocurrency is a very new concept, so it majorly attracts young and tech-savvy individuals.
Those who gamble are attracted to the game because it's entertaining and they're normally not scared of losing their money. However, for the younger people, gambling isn't typically appealing as they're keen on getting a return on their investment, but are also aware that it is risky.
This type of person is someone who sees cryptocurrency as a way of transacting, just like those who are into Forex (Foreign Exchange). If they invest in cryptos like Bitcoin or other popular currencies and store it there for a long time (we're talking about years, not days) – they'll see an excellent return.
Risks particular to gambling utilizing cryptos versus fiat
Both of them have similar risks when it comes to being defrauded, where some websites that aren't popular aim to steal money or refuse to make payments, although they have a different way of achieving this. But we've also got ways of reducing risks for both currencies, and making use of popular gambling websites is important.
The regulatory agencies audit games hosted by online betting or gaming websites, as it's meant to be when they use fiat, there's a high tendency that the game won't scam you. With that being said, the website itself can still try scamming you, maybe by claiming that you didn't provide the required documents or try to avoid paying the players when they win.
It's greatly safer for gamblers to make use of crypto-based gambling websites because of the blockchain and crypto transparency, allowing players to trace and track their money. Nevertheless, it is easier for crypto-based scammers to scam their targets. For instance, they don't need to add a normal payment gateway to their website or have some escrow money. This allows the website to steal your money or refuse to pay out, just because it isn't regulated.
Anybody can create a site, host games, then call it a gambling website, asking players to deposit crypto if they want to begin playing. But then it doesn't work. It is, unfortunately, easier to develop a scam website like this, but what's good is that cryptocurrency is starting to be more mainstream, so we've already got popular and legitimate websites that make use of it, and because of that, there is a lesser chance of being scammed.
Gambling, cryptocurrency, and blockchain regulatory issues
When it has to do with regulating gambling, crypto, and blockchain, it is important to trace the funds' source. If players deposit with the use of bank transfers or credit cards, it's way easier to be traced. That's because they require a bank account, and opening a bank account will first require them to complete verification checks and provide identification.
Additionally, banks are required to prevent money laundering, so they ask the owner of the account if they notice unusual activity or about the funds' source. But crypto allows users to deposit money to a wallet ID, and since it isn't audited, the funds can come from any type of activity and anywhere.
Regulators request proof of the source of the money but aren't able to force gamblers to disclose this info. And if the operators of the website don't have solid managers to request for the funds' sources, then there'll be no way to face the source. These are the reasons that cryptocurrency is unfortunately the best way to launder money.
The requirement for tighter identity checks
Gambling websites based on crypto need to be regulated similarly 90as those that operate with fiat, which is complying with every regulation and needing ID of the players like their date of birth and also requiring the origin of the money. Nevertheless, this isn't done frequently for crypto-based websites because it isn't a prerequisite.
Additionally, several gambling websites are based in countries like Armenia and Georgia where it isn't as very much monitored or regulated. Even though several payment gateways would not offer their services to websites that are located in risky areas, crypto-based websites are thriving there as they don't require to request permission to receive payment.
Every regulator is trying to be very strict and accustomed to policies for crypto-based transactions, but it'll take a long time, and the road ahead is tricky. For now, as long as players accept their terms of service, then it's their choice to decide if they believe the website is a scam or not.