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7 Reasons Why Online Casinos Are Embracing Bitcoin

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Online Casinos Are Embracing Bitcoin

For many years, online casinos have shied away from accepting bitcoin due to the digital currency’s perceived association with criminal activities. That has changed. Nowadays, more and more casinos are accepting the cryptocurrency for placing bets as they are waking up to the benefits of accepting bitcoin as a payment method. In this article, you will discover why online casinos are embracing bitcoin.

Ease of Integration as a Payment Method

Getting set up to accept bitcoin payments is very easy and does not take up much time. Online casinos can accept payments via customer bitcoin addresses linked to their accounts. The bitcoin amount deposited on the gambling site is then converted into fiat currency with which the user can then place his bets.

Low Transaction Costs

online casinoThe transaction fees involved when using bitcoin are lower than most other digital payment options such as credit card transactions, for example. Bitcoin’s low fees help both the players and the casinos as it gives gamblers more money to place their bets with and it reduces operational costs for online casinos.

Processing credit card payments can be an expensive endeavor for online casinos. Using bitcoin, instead, solves that problem since there are no intermediaries when it comes to deposits and withdrawals, making the process simpler and much cheaper for both involved parties.

Anonymous Transactions

Many online casino players prefer to use bitcoin as it provides them a level of privacy that traditional payment methods cannot match. The user does not have to rely upon an operator’s level of security or the bank’s for that matter. Since payments are made through a pseudo-anonymous bitcoin wallet address, players can choose to remain anonymous when gambling.

By using bitcoin, players lessen the risk of fraud through keeping their anonymity as no details are shared during transactions, which is the case for credit cards and other more traditional digital payment methods. With more users preferring to remain anonymous when gambling online, operators are now increasingly integrating bitcoin into their platforms.

Faster Transactions

Another reason why online gambling platforms such as Casino NetBet are accepting bitcoin payments is that it offers a quick and reliable way to manage deposits and withdrawals online. When using an e-wallet, a credit card or a direct bank transfer, players can expect processing for this payments to take a while. On the other hand, bitcoin payments from the customer to the online casino and vice versa usually take 20-30 minutes.

Payments Security

Las VegasThe rapid expansion of online casinos has increased the demand for online security for all players. The security umbrella must not only encompass user deposits and withdrawals but also ensure the feeling of fairness in the games. Casinos have in the past, collaborated with established online services such as Visa and MasterCard, who are renown for their security-centric business practices.

Having said that, bitcoin is now widely recognized in the online gaming industry as a secure method of payment. There are no middlemen involved in bitcoin money transfers as the digital currency uses a trustless peer-to-peer system that ensures that there is no double spending and no transaction reversals.

Enables users from countries where gambling is frowned upon to place bets

In a number of countries, gambling is frowned upon due to religious and cultural norms. However, individuals who still want to gamble in online casinos can do so if they use bitcoin as their preferred payment method to deposit and withdraw their funds. Given bitcoin’s pseudo-anonymous nature, it is very hard for authorities to link bitcoin wallet addresses to the individual owning them, which safeguards gamblers who want to place bets online in countries where gambling is frowned upon.

Bitcoiners are Gamblers in Nature 

Individuals who buy bitcoin as an investment are naturally risk takers due to the volatile nature of bitcoin as a currency and as an investment class. The price of bitcoin has rallied from $0.01 to over $2,000 in the last eight years but has not done so in a straight line. Daily moves up and down 10% have not been seldom, yet that has not deterred bitcoin holders from buying the currency and using it to make financial transactions. Risk-taking individuals are exactly the kind of client that online casinos want to attract as they are willing to gamble with high stakes.

By enabling bitcoin payments, online casinos are able to attract more risk loving customers to place their bets, which is another reason why more and more online casinos are embracing bitcoin.

Given the long list of reasons why it is beneficial for online casinos to accept bitcoin, it comes as no surprise that an increasing number of online betting operators are opening their doors for the digital currency as a payment method. Not only are online casinos able to reach a wider customer base by accepting bitcoin but it also enables both players and casinos to reduce transaction costs while increasing payment security.

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South African Online Payments Processor PayFast Drops Bitcoin

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PayFast Drops Bitcoin

South African online payment gateway PayFast will cease supporting bitcoin payments from July 20, 2019, due to high transaction fees and long confirmation times. The company expressed its frustrations through an announcement on its website.

Bitcoin’s Current Limitations

PayFastAlthough digital currency is meant to make online transactions cheaper, faster, and convenient, PayFast observed that bitcoin’s current limitations have made it difficult for the company to offer it as an alternative to traditional payment methods.

“Unfortunately, there are a number of limitations and design flaws unique to Bitcoin that make it an impractical substitute for cash, including high transaction fees and long confirmation times for buyers. We have tried various ways to mitigate these problems, but unfortunately, these issues are fundamental. The resultant poor user experience has led us to re-evaluate Bitcoin as a payment method on our platform and a decision has been taken to discontinue support for Bitcoin from midnight 20 July 2019,” PayFast explained.

The PayFast platform has a ten-minute window for the confirmation of bitcoin payments. However, the Bitcoin network has failed, in most cases, to confirm payments within this time period resulting in unsuccessful transactions. The Bitcoin network can currently not handle the volume of transactions it gets at a faster speed, PayFast noted.

Luno has been enabling bitcoin payments on the PayFast platform by acting as an intermediary. “To eliminate any risk posed by bitcoin’s price volatility, Luno locked the bitcoin to ZAR exchange rate for a ten-minute window. If the transaction was not sufficiently confirmed within ten minutes, the payment was unsuccessful and a refund would be due,” PayFast said.

The Bitcoin network can only handle seven transactions per second compared to VISA’s 24,000. This limits bitcoin’s usefulness as a means of exchange and an asset. Moreover, users making payments using bitcoin risk incurring non-refundable processing fees when the transaction fails.

Despite these challenges, the Lightning Network promises to improve bitcoin transactions by making them instant, low-cost, scalable, and acceptable across different platforms.

Ending Bitcoin Support

PayFast hopes that as this space continues to grow, cryptocurrencies will be able to handle faster payments.

“We are eagerly following the developments of cryptocurrencies and the supporting technologies that are aiming to enable faster payments. As soon as these become workable alternatives, we look forward to supporting cryptocurrencies as a payment method in the future,” the South African company stated. 

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Is Egypt Finally Warming Up to Bitcoin?

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Egypt Warming Up to Bitcoin

A new banking law has given the Central Bank of Egypt (CBE) the right to ban the establishment, promotion or operation of platforms issuing or trading cryptocurrencies without acquiring the required licenses. However, this move suggests that the country is softening its stance on bitcoin as it enables crypto startups to operate under an official license.

The New Banking Law

Best Cryptocurrency to Invest inAccording to an unnamed official source that spoke to MENA news agency, CBE’s Board of Directors has the right to regulate cryptocurrencies and demand for multiple licenses under the new draft bill. The draft bill acknowledges the importance of financial technology, keeping pace with global banking changes, and leveraging modern technology to provide financial and banking services.

“The new law provides legal authority for the electronic authentication of bank transactions, electronic payment orders, and transfer orders as well as for the electronic settlement of checks and the issuance and circulation of electronic checks and electronic discount orders provided that Board of Directors of CBE issue rules and procedures regulating all the aforementioned actions,” the source said.

Furthermore, these electronic means will have the same authenticity as original papers as long as they meet the set technical criteria, the source stated.

The new draft bill is not yet available for public reading.

Is Egypt Warming Up to Crypto?

In 2018, Egypt’s Grand Mufti Shawki Allam banned cryptocurrencies based on Islamic law that declared these currencies as potential threats to the current financial system and risky due to scams and extreme price fluctuations. Moreover, he disregarded cryptocurrencies, such as bitcoin, because they can be issued and used without the control of any governing authority.

The new law could be a sign that the country is warming up to cryptocurrencies as crypto firms continue to penetrate the North African market and as the CBE considers issuing a digital currency.

How easy or difficult it will be for crypto startups to register for licenses remains to be seen. However, it does signal a willingness by Egyptian authorities to talk with the industry as opposed to outright ban it as has been the case previously.

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Crypto.com Introduces Crypto Earn and Crypto Credit

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Crypto.com

Cryptocurrency platform Crypto.com has introduced Crypto Earn and Crypto Credit to enable users to earn interest on their coins and borrow by using digital currency as collateral.

Crypto Earn And Crypto Credit

Crypto Earn is a financial product that allows users to earn as much as eight percent per annum in interest on their cryptoasset holdings.

Crypto.comTo do this, users deposit digital assets into Crypto Earn through the Crypto.com app and then begin accumulating interest each day through their preferred cryptocurrency. To get started with Crypto Earn, users will have bitcoin, Paxos, and TrueUSD to choose from, according to a company press release.

Crypto.com is offering users two fixed periods namely one-month and three-month terms to earn interest on digital assets. The company will soon provide users with a flexible holding term. With Crypto Earn, you can also withdraw and deposit coins at no fees and spend what you earn.

Crypto Credit gives users instant loans with bitcoin as collateral. Users are free from fixed repayment schedules, monthly fees, payment deadlines, and late fees which financial institutions such as banks often impose. Users, therefore, enjoy a flexible repayment schedule in the twelve months from the beginning of the credit term.

Furthermore, users owning MCO tokens staked in the app receive a special rate of eight percent per annum. Users can use their loans to buy more cryptocurrencies on the app or they can spend it on the MCO Visa Card with cash back of up to five percent.

Other benefits of using Crypto Credit are that you do not require credit checks and that you can get the credit limit you want.

“Crypto Earn offers the most attractive interest rates in the market today. With the MCO Visa Card and Crypto Credit, we are uniquely positioned to do it while maintaining sustainable unit economics. MCO Visa Card, Crypto Earn, and Crypto Credit together form a powerful product suite that nobody else in the industry has today. We have never been more excited about the potential of our platform and look forward to continue scaling it globally later this year,” said Kris Marszalek, co-founder and CEO of Crypto.com.

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