The mysterious virtual currency, better known as Bitcoin, appeared to have come out of nowhere and reached stardom levels a few months after its release, especially among online casino punters. So why is it so important?
Bitcoin is the biggest invention since the Internet
Pamir Gelenbe, Hummingbird Ventures
For those of you unfamiliar with it, Bitcoin is an open source digital currency, protocol and software that allows peer-to-peer transactions, payments and almost zero administration fees, although with a volatile price that changes every day.
Financial Crisis + Bailed Out Banks = Bitcoin Rise?
With the banking collapse in Cyprus, the internet currency Bitcoin became almost the official way to move savings from the Mediterranean island to other countries. This caused a few legal difficulties but clearly demonstrated that Bitcoin is strong enough to help a devaluation and a financial crisis.
From a gambling perspective, Bitcoin may soon become the most popular payment method accepted by any (or all) online casinos, as it really doesn’t require much in terms of administration costs and it can be easily adapted to any platform.
Jez San, Founder of PKR, one of the top poker sites that accepts Bitcoin, commented: I’m interested in all efforts to legitimize Bitcoin and help it become an established method of storing and sending funds
. San summarized the interview by adding:
Bitcoin could easily be the next Visa, or Mastercard, Paypal .. or displace all three!
Many Bitcoin gurus are not concerned about online wagering sites adopting the Bitcoin currency, but rather focused on how to raise awareness and educate punters on what Bitcoin is about, its advantages and how to keep it safe for everyone. After all, the currency will be on your computer, not inside a bank.
Who will be the first big operator to accept Bitcoin as a payment method? That seems to be the million dollar question, raised by most new comers to the gambling industry; unfortunately no one can tell until it happens.
So far, multiple small online casinos based on the Bitcoin currency have emerged. Although most of them have had a nice financial flow so far, they haven’t reached global levels due to the still relatively low popularity of the currency among punters.
Amongst the top sites are SatoshiDice, which has reported earnings of ฿33,310 by 2012 with 78% monthly growth rate on bets. Today SatoshiDice is worth US$ 8.9 million in the stock market.
Why is Bitcoin being adopted first by online casinos and not used for regular purchase transactions?
See for yourself:
- The ultra-competitive environment of online casinos and their willingness to try anything has made this industry the first adopters of this technology;
- It is already accepted in 60+ countries;
- It is the only decentralized payment method (not allied to any company, bank or stock market);
- It doesn’t follow any political embargos;
- Nearly immediate payments with little to no fee.
The gaming industry is yet to see further changes, and it will largely depend on how many players will be willing to accept the currency. If a player uses Bitcoin for making a deposit, betting and withdrawing, then the risk is on the player.
