In recent years, a growing number of online gambling sites have started accepting cryptocurrencies like Bitcoin, Ethereum, and Litecoin as payment methods. The use of digital coins provides unique benefits as well as some potential drawbacks for players compared to traditional fiat money. This article will analyze the main pros and cons of betting with cryptocurrency on Internet platforms like Bit 21 Casino.
Anonymity and Privacy
One of the most often cited advantages of using cryptocurrency for online gambling is the increased privacy and anonymity it can provide compared to traditional banking and payment methods. Cryptocurrency transactions are recorded on public blockchains, but users’ identities are not directly attached to these records in most cases.
This allows players to gamble without having their transactions show up on a bank statement, revealing the nature of the payment. Gambling continues to carry social stigma in some places, so masking gaming-related payments can be desirable for some users.
However, true anonymity is not always guaranteed. Analysts can sometimes use blockchain forensics to connect identities to crypto addresses and transactions in cases of criminal investigations. But for average users, cryptocurrency still provides more privacy than legacy finance systems.
Accessibility and Payment Speed
In many countries, banks and payment providers prohibit or heavily restrict transactions related to online gambling for regulatory reasons or due to corporate policies. This can make funding an account at internet gaming sites difficult for some users.
Cryptocurrencies provide an alternative payment avenue that circumvents many of these roadblocks. Digital coins can usually be directly transferred between users quickly without permission from external institutions. This gives those who may not otherwise be able to access online gambling sites a way to participate.
Transaction speeds also benefit players. Cryptocurrency payments can often be completed in under 10 minutes, while bank transfers and other fiat options may take much longer, sometimes up to several business days. This improved velocity gives players faster access to funds after depositing and cashing out.
Price Volatility Risks
While the value cryptocurrencies hold can rapidly increase, prices are also prone to big drops over short periods of time. The chart below shows the large fluctuations Bitcoin has experienced since 2020:
| Date | Bitcoin Price |
| January 2020 | $7,200 |
| December 2020 | $29,300 |
| July 2021 | $29,400 |
| November 2021 | $69,000 |
| June 2022 | $20,100 |
This volatility can present issues for players. Depositing coins when prices are high and then seeing values crash before cashing out means players may lose money even if they win bets. Sites that only deal in cryptocurrency also force players to shoulder this volatility risk.
Fiat-accepting casinos with crypto options allow users to switch between assets to avoid some volatility pitfalls, but price changes remain an inherent challenge with digital currency gambling.
Security and Fraud Risks
Although cryptocurrency gambling provides more transaction privacy, users also relinquish some security measures utilized in legacy finance designed to recover funds lost due to fraud or theft.
Chargebacks are not possible on most blockchains. If coins are sent to the wrong address or an account is hacked, there are limited options for recovering the lost assets.
Some sites like thereviewscasino.com have insurance to protect player funds from internal fraud and theft, but mistakes and security exploits remain a concern that can separate users from their digital assets with little recourse.
As with any transfers, players should use proper security precautions in protecting login credentials and the keys to their cryptocurrency wallets when gambling online. But risks beyond a user’s control persist.
Access to Additional Promotions
Many crypto-accepting gambling sites offer users promotions and rewards for using digital coins instead of traditional payment methods. These can include better deposit bonuses, improved reward programs, and other incentives.
These promotional choices encourage cryptocurrency adoption among bettors for the sites’ benefit but also provide players with additional value and lower costs for gaming services compared to fiat options. Users should assess these perks at different casinos when considering cryptocurrency versus other payment methods.
Bottom Line
Cryptocurrencies provide unique advantages but also some distinct drawbacks for online gambling compared to legacy finance tools. Each player must weigh the benefits of anonymity, payment speed, and accessibility gained against the risks of volatility, and security when deciding on using digital coins versus fiat money for internet gaming transactions.
Analyzing the offerings at specific crypto-accepting casinos, including their bonus promotions and protections, can further assist users in determining the best payment method for their needs. But overall, cryptocurrencies remain a growing and often appealing option among bettors and casino operators in the internet gambling space.
