Benefits and Drawbacks of Using Bitcoins for Online Casino Gambling
October 20, 2020 | Cryptocurrencies | No Comments
The use of cryptocurrencies is now supported in many countries that even online casinos are accepting bitcoins as deposit, and in funding customer payouts. While the main advantage of using bitcoins for online gambling activities is keeping one’s anonymity intact, there are also potential drawbacks.
After all, the value of cryptocurrencies tend to fluctuate, because their values depend on the supply and demand attributable to a digital currency.
Bitcoin casinos accepting the digital coins as deposit will only assign a specific amount of casino credit for a player to use. Presumably, the value of the credit is based on the current US$ exchange value of the cryptocurrency at the time of the deposit.
The question that one would ask, is at what US$ value will an online casino convert a customer’s amassed winnings in his account? The likely answer to that is by the same U.S. dollar value that was used in determining the equivalent credit that a player received when he made the deposit.
While there is a possibility that there will be a difference between the USD value of bitcoin at the time of deposit and time of payout, bitcoins as far as online casino transactions are concerned, will have the same effect as having bought and sold bitcoins at the same rate on different dates. That way, an online casino player will refrain from hoarding his winnings and wait until the bitcoin price value goes up.
In the same way, when a payout is requested, a bitcoin casino is obliged to pay a customer at the agreed bitcoin exchange rate, regardless of any increase or decrease in the price of bitcoins at the time of the payout request.
However, it would be wise for a player to carefully review the terms and conditions of the bitcoin casino before deciding to become a member.
Are there Online Bitcoin Casinos Operating in Asian Countries?
If there is any region where the use of bitcoins for gambling is practical, it would be in Southeast Asia. While trusted online gambling operators in countries like Brunei, Indonesia, Malaysia, Singapore and Thailand use Virtual Private Network (VPN) in order to keep gambling transactions private and undetected, some are also accepting bitcoins as additional protective shield. One Asia facing bitcoin gambling site that we know of is 918kiss Bitcoin Casino.
Even in Asian countries, a traditional online casino deposit and payment system still transacts either by way of bank accounts or e-wallets. The drawback however is that in the event that an online casino customer hits a huge jackpot, the bank involved in the payout will have to report the transaction, in compliance with the international Anti Money Laundering Act (AMLA).
As opposed to the use of bitcoins as a medium for deposit and payouts, blockchain transactions remain confidential and anonymous. Banks and other payment processors on the other hand, are required to report details of large financial transactions to the proper government authorities; including the name of the account holder and the nature of the financial transaction.