The issue of cryptocurrencies is very divisive. On the one hand, some people predict that they are the currencies of the future and could potentially replace fiat currencies as global currencies. On the other hand, many people are set against cryptocurrencies. They argue that the value of money should not fluctuate as much as cryptocurrency prices do, among other arguments.
Despite the ongoing debate, more and more organizations are accepting cryptocurrency payments as time goes by. While there are some benefits for these institutions, including the inability of customers to reverse transactions, why would customers choose to make cryptocurrency payments instead of fiat currency payments? To answer this question, it may be best first to answer two questions; what are cryptocurrencies, and how do they work?
What are cryptocurrencies?
Cryptocurrencies are digital currencies. They are not controlled or upheld by any central authority. Instead, they are decentralized.
How do cryptocurrencies work?
Cryptocurrencies work through blockchain. All transactions carried out using the cryptocurrencies are recorded on the blockchain, which is its digital ledger. A blockchain holds all transaction records the same way banks keep people’s transaction records. However, the blockchain ledger is available to all people who own the cryptocurrency. People often say cryptocurrencies are trustless because every person on the blockchain network has a record of all the transactions.
Now that you understand this, here are a few reasons why more people are using cryptocurrency to pay casinos.
1. They want to avoid high transaction charges.
Banks typically have higher transaction charges than cryptocurrencies. This is especially true when it comes to international players. Let’s say you are an international gambler, and you would like to play Sloto Cash online casino games. It makes sense that you would want to pay with a payment platform that offers the cheapest transaction charges. Since cryptocurrencies offer these low payments, it follows that many international players would opt to pay with cryptocurrencies.
2. Confidentiality and discretion
This is one of the biggest allures of cryptocurrencies. If a player makes payments from their bank account to a casino, the bank and anyone who has access to their bank records can find out about their gambling. Some people are not ready for others to find out about their gambling. Cryptocurrency payments exist on the blockchain, but the names of people are usually encrypted. This is besides the fact that everyone gets their own cryptocurrency wallet, and transactions are peer to peer.
Simply put, when you make payments with cryptocurrencies, you are assured that only those who you want to know about your payment will know.
Are cryptocurrency payments untraceable?
You may have noticed that the point made above is about confidentiality and discretion. The idea that cryptocurrency payments are anonymous has been an enticing fact for people who want to conduct illegal businesses with cryptocurrencies. Yet, it is essential to remember that cryptocurrency payments are traceable. This may be with the exception of privacy-enhanced cryptocurrencies like Monero, but few casinos, if any, accept payment with these cryptocurrencies.
3. They want autonomy
If you want to make a payment to your local Starbucks with your debit card, the bank has to approve the payment for the money to be moved from your bank account to Starbucks’ bank account. Some people are against the idea that they do not have autonomy over their money and instead have to depend on an intermediary to approve their payments.
Cryptocurrencies solve this issue. Firstly, you are in charge of the money in your cryptocurrency wallet, and there is no centralized authority that can dictate what money can enter or leave your account. Secondly, since transactions are peer to peer, any money you want to pay goes directly from your account to the receiver with minimal charges. This decentralization of money makes it appealing for people who have qualms against fiat currencies and traditional banking institutions.
4. Fast transactions
It is not uncommon for you to get delays when you make bank payments. Sometimes your bank’s servers are down or undergoing maintenance, and so payments are temporarily delayed. This is not the case with cryptocurrencies. Cryptocurrency payments can be swift. This is especially true for international payments. Money is transferred from the player to the casino as soon as the transaction is recorded on the blockchain.
In this day and age, where people like everything instant, it makes sense that people would opt for the currency with the fastest processing time.
5. No need to give bank information
Some people do not trust websites with their bank information for fear of compromise through hacking. Cryptocurrency payments, on the other hand, do not need any bank information. To send money to a casino, the player only needs the casino’s cryptocurrency wallet address. While the player may need to give other identifying information like their identity card, they do not need to provide their banking information if they do not want to, which can alleviate their fears about their information security with the casino.
Despite the divided opinions on cryptocurrencies, they are probably here to stay. There are many benefits to be reaped from cryptocurrency payments both for the institutions that accept them and the players that use them. This article contains just some reasons you can expect more players to choose to pay with cryptocurrencies in the future.