The cryptocurrency Bitcoin has repeatedly made headlines in recent years. It stands above all for secure payments on the Internet - the first non GamStop casinos are now even accepting bets in the form of Bitcoin. For a detailed analysis, check out our Fat Pirate Casino review.

Background to Bitcoin

The Bitcoin phenomenon is a term that should be examined more closely in order to understand the principle. Composed of "bit", a digital storage unit, and "coin", it quickly becomes clear that this is a form of digital currency. Instead of banknotes and coins that you can touch, payments are processed exclusively over the Internet. The cryptocurrency is not dependent on a central bank that determines the amount of money in circulation. Instead, cryptocurrencies are controlled in a completely decentralized manner, which also protects them from manipulation. First and foremost, it is about the security of information: With the help of Bitcoin, completely anonymous payments can be processed on the Internet. For this reason, cryptocurrencies have also become a popular option for criminal transactions and have caused some - often undeserved - negative headlines.

Large Fluctuations in Value

Since the release of the corresponding software in 2009, Bitcoin has had an enormous success story. At first it was just a little toy for programmers and computer nerds, but it quickly developed into a real object of speculation. Little by little, the price of Bitcoin rose enormously, reaching almost 20,000 US dollars in December 2017, but a year later the value had fallen to under 4,000 US dollars before the price began to rise again. These enormous differences already show that speculation with Bitcoin is very popular, but also entails enormous financial risks. The reason for this is mainly because it is a very young currency that has become enormously popular as an object of speculation, although supply and demand have not yet been in a very balanced relationship.

Fast & Secure Payments

First and foremost, Bitcoin was not designed to speculate on rising prices, but to process absolutely secure payments quickly. Unlike payments by credit card, no personal information is transferred; instead, all transactions are converted into data records. These are then stored in the decentralized blockchain network and cannot be changed. In practice, this makes it almost impossible to manipulate the network, so every payment is extremely secure and is also carried out within fractions of a second. At the same time, no personal data is stored by the recipient of the payment. This is another important difference to credit cards. Recipients often store the data required for a payment in this way to make things easier for their customers in the future. However, there are always negative headlines about data leaks in which users' payment data is stolen by hackers. This is a huge problem for users, as they have no control over it and are often not informed about such attacks by providers until late or not at all.

Bets on Games of Chance

Due to the enormous attention that Bitcoin and other cryptocurrencies have received in recent years, it has also become very interesting for online casino operators to accept this variant as a payment method. However, customers' balances are usually managed in parallel when they use Bitcoin. So you cannot deposit Bitcoin and have it converted into euros or US dollars at the current daily rate, but use your own Bitcoin account, which can then also be used to place bets on games that are explicitly offered for it. In this way, operators avoid the difficulties that would otherwise come with a currency that is not regulated by a central bank and whose value can fluctuate greatly.

Use as a Payment Method

It is entirely possible for online casino operators to accept Bitcoin payments without violating the applicable regulations for their licenses. However, there are a few aspects to consider. Firstly, it is important to note that most governments still do not accept Bitcoin and other cryptocurrencies as real currency. In countries where relatively strict regulations apply to online gambling, the relevant authorities may do everything they can to prevent players from using this method. Players also run a certain risk - the Bitcoin in their own Bitcoin wallet is ultimately lost if they no longer have the digital key to it.

Do Non GamStop Casinos Need a Special License?

Regardless of the currencies used in an online casino for stakes in the various games, the respective operator must have a corresponding license. This is a prerequisite for offering gambling on the Internet; without such a license, the casino operators would also not be able to find a partner to provide software for the games. Apart from that, the risk when betting with Bitcoin is no different from "real" currencies. Even with games designed specifically for Bitcoin, the house always has a certain advantage, although this is relatively small on average compared to conventional casinos.

Further Development

In the coming years, operators of online gambling portals will still need a license. However, with a license from one country, such as Malta or Cyprus, they can also be present in many other countries thanks to the Internet. Which currencies are accepted for payments and managing one's own balance depends solely on the operator of a portal - no special regulations are likely to be introduced for Bitcoin either. The number of online casinos that accept Bitcoin for payments is therefore likely to continue to rise in the coming years.

Conclusion

Even if players want to make payments in a non GamStop casino using Bitcoin, they should consider the casino's house edge and the license of a portal. Apart from that, however, this method does offer advantages, especially in terms of security and the speed of payments.