Cryptocurrencies in Online Casinos – A Comprehensive Case Study
The topic of this article is quite clear – Crypto Casinos is what we are talking about in this piece.
In our previous posts, we tried to cover a range of topics that would be of interest for any average casino player. Our aim was always to bring you up to speed with the game mechanics, strategies, and technical info.
Introducing Cryptocurrencies & Crypto Casinos
However, we realized that we hadn’t had many words on the topic of cryptocurrencies. The subject, which is becoming hotter by the minute, is a relatively new concept in global economics.
Digital currencies have swept over the world in the last few years and amassed a big user base. They even found their way to the online casino industry, where they quickly became one of the favourite methods of money transfer.
What we wanted to do is go deeper into the topic of crypto versus fiat. Our starting point was the relationship between cryptocurrencies and regular, fiat currencies. From there, we entered the online casino field and explored the rich mine of crypto casinos. Everything that we uncovered is listed for you below. We tried to answer as many burning questions as we could. Don’t worry; you will be able to find out all you need to know about cryptocurrency casinos. That includes games offered in crypto casinos, the history of crypto, and the pros and cons of these currencies. Of course, we included top lists of cryptocurrencies that players use in online casinos and where you can find them.
Before we dive deep, let’s first do a fact check to see what we know about crypto and fiat currencies.
What Is a Cryptocurrency?
A cryptocurrency is a virtual currency that operates via a decentralized system and has no official government or bank backup. Behind cryptocurrencies stands cryptography encryption, not the government.
In other words, it’s online, global, and independent. The fact that it has no ties to any country or bank means that its supply is fixed. To get more coins (all currencies have unique coins), users must mine them. Speaking of coins, it is essential to note that they cannot take a physical form like bills. Instead, everything is online – it exists solely in the virtual realm. That enables faster transactions, safer procedures, and easier use.
Differences Between Crypto and Fiat Money
Although they mainly serve the same purpose – means of exchange – there are some notable differences between crypto and fiat currencies.
The biggest difference is that fiat currencies are legal tender, i.e. the government declares them to be legal tender. That means that they are backed up by the government, which assigns the value. Regular currencies can exist in the form of physical bills, credit, and bonds. Furthermore, citizens use regular currencies to pay taxes. A significant problem that can arise with regular currencies is inflation, which happens when governments print more money than necessary.
On the other hand, digital currencies are independent and not legal tender. They can be only virtual. The miners thus determine their value and supply. Hence, inflation does not affect digital currencies. In addition, the users pay tax on digital money.
The History of Digital Currencies
The history of these virtual means of exchange is not that brief. They became a mainstream concept back in 2009 when the world got to meet Bitcoin. In a global sense, Bitcoin is the first modern cryptocurrency. However, before Bitcoin, cryptographers did dabble in the concept of electronic cash a bit. In 1995, David Chaum, a now-famous American cryptographer, introduced electronic money through Digicash. His invention included first electronic payments via complex software and encryption keys for withdrawals. That is how digital transactions became untraceable.
After Chaum, the NSA published a paper on cryptography in electronic cash, essentially describing a full cryptocurrency system. Two years later, Wei Dai and Nick Szabo further contributed to the development of the concept and made way for Bitcoin.
After 2009, the world wanted to explore the cryptographic cash system further. Two years later, Litecoin emerged as a rival to Bitcoin. It is still one of the strongest virtual currencies, surpassed only by Ethereum and Bitcoin.
Crypto Casinos Concept Inception
The system and nature of these currencies, their potency, and efficiency all influenced the introduction of crypto casinos. Online casinos were becoming more pronounced in the global casino industry. The digitalization of entertainment brought a ton of benefits to the standard casino entertainment, and operators sought to explore the field. One way of improving the scene was bringing digital currencies into the fold. And that is, dear readers, how we got to meet crypto casinos.
Timeline of Cryptocurrency Casinos
The picture above is there to illustrate the timeline of cryptocurrency online casinos. Down below, you can find some more detailed explanations.
- Bitcoin appeared in casinos in 2011. The first site was Seals with Dice, and all money transactions involved Bitcoin.
- In 2012, Erik Voorhees launchedSatoshi Dice. Voorhees was a massive Bitcoin fan, and his site was responsible for more than half Bitcoin transactions. He sold the site in 2013. To this day, it is the biggest Bitcoin gambling site sale in history.
- 2013 is also the year when we got our first crowdfunded Bitcoin casino. Unfortunately, Just Dice suffered major losses on the platform due to human error.
- In February 2014, Bitcasino.io became the first official licensed Bitcoin casino. Curacao issued the license.
- Months later, BitStarz casino opened its doors for the public.
- In August of the same year, Crypto-Games emerged as well.
- A month later, FortuneJack crypto casino appeared.
- In 2015, the UKGC issued a warning against Bitcoin gambling. Thankfully, the situation changes only a year later, when the UKGC introduced strict guidelines for Bitcoin operators.
- In 2016, the UK got its first-ever Bitcoin casino operator. NetBet becomes the first casino in the UK with a license to accept Bitcoin payments from players.
- In 2017, other digital currencies started to attract attention besides Bitcoin. The two top substitutes became Ethereum and Monero.
- Since 2019, the online casinos that offer cryptocurrencies have been on the top of the industry with sky-high revenues.
Advantages and Disadvantages of Crypto Casinos
Cryptocurrency-based casinos offer the players a wide array of benefits. Thanks to the technological advancements, such venues now offer an experience that’s, if not better, than the same as in regular online casinos.
For instance, by joining a crypto casino online, players get the same privileges as regular casino players. That includes fast registration, excellent Customer Support, and safe playing conditions. What is more, such casinos are even more reliable than most regular casinos. Because of the nature of digital currencies, they involve untraceable transactions and enhanced privacy protection.
When it comes to the quality of the entertainment, no one can deny that they are at the top of their game. For starters, these casinos collaborate with a vast network of top-tier providers. Hence, their lobbies are teeming with popular releases and grow regularly.
Additionally, the bonus and promotions offers are thriving as well. With casinos such as BitStarz, the supply of special deals is always top-notch. Plus, players have access to numerous bonus perks, such as comp points, VIP bonuses, and exclusive offers.
Crypto Casinos Pros and Cons
To sum it all up, here’s a brief overview of crypto casino pros and cons.
PROS
- Great bonus and promotions offer
- impressive game portfolios with titles from top-tier suppliers
- enhanced security of the players
- no transaction fees
CONS
- Digital currencies are unstable and unpredictable
- Wagering requirements for each withdrawal
Top 5 Cryptocurrencies Found at Online Casinos
Bitcoin is the first modern cryptocurrency, but it is far from being the only one. As the popularity of these digitalized means of exchange grew, so did their numbers. Today, there are hundreds of them, but not all are reliable, stable, and popular.
Here is our list of the best cryptocurrencies offered at online casinos.
- Bitcoin
Bitcoin is the leader of digital means of exchange. The first crypto casino offered only Bitcoin, although the situation changed over time. In most casinos today, even if there are no other digital currencies, you will find at least Bitcoin or Bitcoin Cash.
- Litecoin
The main rival of Bitcoin Litecoin is a popular choice when it comes to online gambling. Specialized Litecoin casinos exist all over the world, and they are prevalent.
- Ethereum
The rising star of crypto finance Ethereum is threatening to overthrow Bitcoin as the leader. What is more, Ethereum is probably the only cryptocurrency that can do that. It’s more than just a currency – it’s a platform, where users can create their own ETH online casinos.
- Monero
Monero appeared in 2014. Just like any other currency, it offers the players the benefit of using private, secure, and untraceable transactions. It’s more stable than most other similar means of exchange.
- Dash
Dash is a popular cryptocurrency, but there aren’t many casinos that offer its services. However, the oldest crypto casinos do have it as an option, along with numerous premium bonuses and promos. We guess that Dash is yet to shine in the online gambling world.
Best Crypto Casinos
If you are wondering about the venues where you can use Ethereum or Litecoin, we are here to help. We compiled a list of UK crypto casinos where you can play using any cryptocurrencies, but we have a couple of special mentions of crypto casinos US. Bear in mind that not all these crypto venues specialize only in digital cash. Their offers include a plethora of other options, which means that you can use any method or service that you want.
BitStarz Casino
With more than 1800 titles in the lobby and dozens of software providers, BitStarz is the king of digital cash casinos. Newcomers get to enjoy a massive 4-deposit Welcome Package in Bitcoin and a range of live, online, and bitcoin casino games which makes this gambling venue one of the best crypto casino websites.
Play at BitStarz Casino!
1xBet Casino
1xBet Casino is one of the biggest brands in the realm of sports betting and casino entertainment. The casino offering is just a fragment of its impressive offer. Players of the casino can enjoy legendary slots, jackpots, and live casino games. Its library boasts an incredible collection of table games as well. Moreover, when it comes to cryptocurrency, there are no less than 25 different crypto methods you can use for both deposits and withdrawals.
Play at 1xBet Casino!
Drake Casino
Drake Casino is an expert in online slot games. All players that join the casino will get a chance to taste some of the best casino games in the world. Furthermore, players from all around the world can join the casino and claim its delicious Welcome Bonus. And most importantly, this casino will accept cryptocurrencies as deposit options which puts it on our list of crypto casinos.
Play at Drake Casino!
Bovada Casino
Bovada Casino caters to US players. What makes this casino great is the astonishing collection of crypto casino bonuses. Countless promotions exist for both slot and table game enthusiasts. There are even specific crypto-related bonuses that you can enjoy!
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Slots.lv Casino
Slots.lv Casino mainly works in the North American market. Canadian and American players often cite this as their favourite casino. In the past, Slots.lv casino existed as instant play and download content casino. These days, players do not have to download anything; they can simply log in and play the games instantly. Moreover, they will find a fantastic bonus offering, specially designed for Bitcoin deposits.
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What Games do Crypto Casinos Offer?
These casinos, as we mentioned, offer the same kind of experience as regular online casinos. Every element of the casino offer is there – from the Welcome Bonus to the withdrawals. And of course, that includes the games as well.
On these sites, you will be able to find any type of crypto casino game that you want. Although most of them feature mostly slot games, their table sections are well-stocked too.
Roulette, Blackjack, and Baccarat are the most popular games traditionally found in online crypto casinos. Moreover, there are the live versions of the games as well – live dealer titles are an important element of the offer.
There is also one thing that you won’t be able to find anything else. Namely, there is a collection of Bitcoin games or games that are built to operate via Bitcoin only. These masterpieces are not precisely common, but they are a big attention-grabber in prominent cryptocurrency casinos.
Conclusion
The world is speeding up technological advancements with every passing minute. That means that our entire world as we know it tends to become even more digitalized than it is right now.
That is why we think that cryptocurrencies are yet to find their purpose in the global economy. Along with that, they will undoubtedly take up a bigger space under the online casino spotlight. We will surely witness even more crypto casinos emerge in the market in the upcoming years. And we don’t know about you, but we are looking forward to that.
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BestCasinos team consists of online casino experts dedicated to spreading their knowledge and experience to a wider audience, all in effort to help even the most inexperienced players gain their footing in this exciting industry.