In today’s online gaming market, a borderless experience is just over the horizon, presenting players and operators with unprecedented freedom.
The key to achieving borderless online gaming could lie in the adoption of the cryptocurrency bitcoin, which would allow players to access their favourite games from anywhere in the world.
Bitcoin Gambling in its Current Form
Currently, the casinos that accept bitcoin are few and far between. While we are beginning to see an increasing number of bitcoin casino sites dedicated to the use of bitcoin, it is still not a widespread practice.
It will take the cooperation of casino operators, gaming regulators and software providers to create an effective infrastructure in which bitcoin can become a widely used currency in the online gaming market.
The Advantages
Bitcoin presents a myriad of benefits to both players and operators in the gaming market. Firstly, players are presented with secure worldwide access to bitcoin casinos.
They don’t have to worry about whether the casino accepts any particular currency, and there is no need to submit any personal information over the internet when making withdrawals or deposits.
The cryptocurrency could open up the online gaming market to a wider range of players around the world. In many countries, there are strict rules about online gambling – and residents in some locations simply face the obstacle of their currency not being accepted at most gaming sites.
Bitcoin could truly create a borderless experience that brings together players internationally.
“Bitcoin as an alternative currency is used by societies, whose financial system fails to operate normally or stagnates, says Alex Sudaze, founder of Bitcoin Embassy.
One of the main advantages of using bitcoin is that there is no third-party involved when depositing or withdrawing money.
Players don’t have to transfer their currency through a bank or e-wallet in order to fund their accounts.
This means that there are no transaction fees, which can be quite steep depending on how much money is being transferred. It also ensures quick transaction times, as withdrawals can usually be made instantaneously.
On the other side of the coin, gaming sites would benefit from being able to offer better customer service. Today, sites laud themselves for being able to cater to players from around the world, and for processing transactions quickly. Should bitcoin make its way into the market, operators will experience improved customer satisfaction.
The Setbacks
Bitcoin is still not a very safe bet for most people. Investing in the cryptocurrency can be hugely profitable, but it is still very risky.
Players won’t want to use bitcoin to play games online if there is the chance that the currency will lose a significant amount of its value once they decide to withdraw their cash.
“The changing value of Bitcoin is not too dissimilar from stocks in that a stock’s value often fluctuates,” says Kevin Sweeney, founder of Sweeney Strategy Consulting and finance process at Worcester Polytechnic Institute.
“You can make an incredible amount of money by investing in a cryptocurrency, but you could also deplete your available operating cash reserves by a substantial percentage overnight”.
In fact, the surge in popularity of bitcoin could also present problems for players. In August 2017, nearly 900 000 bitcoins valued at over $1 billion were stuck in a backlog due to limited transaction capacity. While the logjam was cleared up within a day, these types of delays are worrying for potential customers.
Regulated Use for Bitcoin at Casinos
Some countries are starting to look in to the regulation of bitcoin gambling. Malta, a pioneer in the online casino market, is moving forward with plans to make bitcoin and other cryptocurrencies legal for use at online casinos.
The Malta Gaming Authority has commissioned a technical study that will explore the most effective and safest ways to regulate the use of the cryptocurrency in the online gambling market.
“The Authority is cognizant that the rise of crypto-currencies is inevitable,” reads an MGA whitepaper on the future of the country’s gambling industry. “Conscious of the need to remain at the forefront of innovation and to keep up with new developments in technology and the industry. The Authority is committed to allow the use of cryptocurrencies by its licensees in the immediate future.”
Another major sign that we are getting closer to regulated bitcoin gaming is the adoption of the cryptocurrency by big-name brands like Expedia, Overstock and even OKCpuid. Retailers have seen the value in cryptocurrency because it presents a borderless shopping experience.
Customers can make purchases of any amount from any international location, whether they are shopping from a tablet, smartphone or desktop device. Retailers also pay lower transaction fees – just 1% compared to the 3% charged by credit card companies.
The benefits of borderless gaming market plentiful, and the adoption of bitcoin by players and operators will hasten our progress towards it. However, we still have quite a way to go before bitcoin becomes the standard in the online gambling market.
The cryptocurrency is still quite volatile, and players will want some reassurance that the value of their money will remain relatively steady over long periods of time – while regulators must work towards creating a gaming infrastructure in which bitcoin can be safely and effectively used by players.
