Gambling with Bitcoin is a huge deal these days. The number of new Bitcoin gambling sites popping up every day is mind-blowing.
Naturally, people are curious. What is Bitcoin? Why is it good for gambling online? Are there any drawbacks to betting with Bitcoin?
We’ll dig into all of that and more in this bitcoin gambling guide. We’ll lay it out honestly so you can make an informed decision about using peer-to-peer cash as your chosen casino payment method.
What Is Bitcoin and How Does It Work?
If you pay attention to most media outlets, you could be forgiven for thinking that Bitcoin is some sort of scam. After all, people pile cash into it like there’s no tomorrow, it rises sharply, a few early investors cash out, and then it crashes. Sounds fishy, right?
Fortunately, these mad price bubbles are the least interesting thing about Bitcoin. What it really is boils down to something revolutionary: peer-to-peer electronic cash, the first of its kind in history.
Ever since Bitcoin was launched, it has been possible to pay someone directly over the internet. There’s no more need for a middleman or trusted third party to verify the accounts. Transaction records are updated every 10 minutes and there’s no possibility of double spending your coins.
Revolutionary, right? As online gamblers, Bitcoin gives us the chance to deposit cash (Bitcoins) into the casino and receive them as winnings. There’s no need whatsoever for any fee-taking payments company to sit in the middle.
Gambling With Bitcoin – Pros and Cons
Before we get started here, let’s mention something. There are currently three versions of Bitcoin – BTC, BSV, and BCH.
BTC is the Bitcoin you hear about in the media, but it sucks for payments. The fees are high and the blockchain gets backlogged regularly meaning transactions can take hours. This is down to some terrible design decisions by the BTC developers.
For low fees, we recommend using either BCH (Bitcoin Cash) or BSV (Bitcoin Satoshi’s Vision). However, all of the other pros and cons here apply equally to BTC as the others.
The Pros of Bitcoin Gambling
Security – Bitcoin casinos are the most secure because it’s the most secure blockchain. The hash power, meaning the computing power, which secures the bTC blockchain is absolutely insane. The network uses more electricity than some countries like Switzerland. Any attacker would have to gain 51% control of the network and it would end up costing more than they stand to gain. Bitcoin is the most secure casino payment method there is.
Fees – BTC fees range from $5 per transaction to $60, depending on the demand. Fees for BCH and BSV will cost hundredths of a cent. These fees apply whether you’re sending $10 r $100 grand. The fees are paid to miners who secure the network. For large amounts, such as when you withdraw big jackpots, Bitcoin fees are much smaller than the percentages credit card companies and banks will take. This is one of the biggest plus sides to gambling with Bitcoin.
Permissionless – You don’t have to apply for a Bitcoin account or sign up and make one the way you would a bank account. Likewise, nobody can pull your permission to use it. All you have to do is download a free Bitcoin wallet from a trusted source and begin sending and receiving transactions. There are many exchanges you can buy coins on, and once they’re in your wallet, you can send them to Bitcoin casinos or other sites from anywhere. This is why Bitcoin is so popular in the USA and Australia where the government tried to block online gambling transactions.
Speed – Again, BSV and BCH are much faster than BTC. Usually, transactions on these chains settle in seconds. However, when you use BTC, which is the version most people refer to as Bitcoin, transactions usually take about 15 minutes. When the network is busy, they can take hours. That’s still faster than the 3-5 days for international bank transfers and card payments. Where you have an option, we always suggest using Bitcoin Cash or Bitcoin Satoshi’s Vision for gambling faster payouts.
Privacy – It’s a myth that Bitcoin is anonymous. However, it is private. Nobody has to know a particular wallet address is yours, so you can use Bitcoin just like cash. In fact, Bitcoin experts recommend using a different wallet address for every single transaction. Unlike with cards, bank transfers, and payments made using PayPal and other e-wallets, Bitcoin gambling payments will not appear on your statements. In fact, they don’t have to be linked to your name in any way, shape, or form.
The Cons of Bitcoin Gambling
Technical – First time Bitcoin users are often intimidated by the process of using it. The wallet addresses are long, ugly strings of numbers and letters. This is an indictment of BTC developers more than anything else. They’ve had over a decade to make Bitcoin more user-friendly and have failed. However, the point still stands that gambling with Bitcoin requires a bit of a learning curve.
Acceptance – Unfortunately, due to its association with darknet websites and shady dealings in the early days, Bitcoin regulation has been slow to occur. Therefore, big brand gambling sites don’t yet accept it. Bitcoin will have to comply with AML/KYC laws before top online casinos and betting sites accept it as a payment method. Sure, there are lots of Bitcoin gambling sites online, but the big household names don’t accept it yet.
Loss – Bitcoin is peer-to-peer cash, and as with real-world cash, that comes with personal responsibility. If you send Bitcoins to the wrong address or lose your seed phrase to recover your wallet, that money is gone for good. There’s no way to recover it. You’ll need to memorize your seed phrase so you can recover your wallet and funds if you lose access for some reason. Likewise, you’ll need to guard your wallet from hackers. If they manage to steal your coins, there’s currently no good way to recover them.
Volatility – Because it is mainly used as a tool for speculation rather than its intended purpose as peer-to-peer cash, BTC is highly volatile. It increases and crashes in price by double digit percentages in hours at times. If you win a jackpot in Bitcoins, it’s probably a good idea to cash it out into your local currency as soon as possible. Then again, some gamblers enjoy the thrill of holding a currency that can appreciate in value rapidly. It’s like another form of gambling in itself.
Gambling With Bitcoin – Frequently Asked Questions
Q. Can Americans gamble with Bitcoin online?
Yes, and in fact, the USA is the biggest market for online gambling with Bitcoin. US players pioneered the concept partly because of the UIGEA regulations which prohibit payments companies from facilitating online payments related to gambling. Bitcoin fixes this, and so USA players embraced it wholesale.
Q. How can I get bitcoins to start gambling with?
You can buy them on an exchange like Coinbase or Binance with a credit or debit card. This links the coins to your identity, but there’s no other way of getting them unless someone you know has some and is willing to sell them to you for cash. This is unlikely since most Bitcoiners prefer to hold their coins for future price appreciation.
Q. Do I have to pay tax on Bitcoin winnings?
It’s advisable that you declare and report any Bitcoin jackpots if gambling taxes apply in your country. Determined investigators can link coins to players if they spend enough time looking into it. People who have committed crimes with Bitcoin in the past have paid a heavy price. Don’t be fooled into thinking it’s totally anonymous. After all, the BTC gambling site, at the very least, will ask you to verify your identity before they pay you.
Q. Is there Bitcoin sports betting as well as casino games?
Yes, sites like Bovada and BetOnline offer betting with Bitcoin. You can place wagers on all major sports like football, basketball, baseball, hockey, soccer, tennis, golf, boxing, MMA, and other sports.
