Fiat Currency or Bitcoin: Which One Should I Pick For Betting?
Online casinos are a great way to enjoy games of chance from the comfort of home without traveling long distances.
And while online casinos do accept fiat currencies such as the U.S Dollar, there’s no reason why you should place bets with Bitcoin. And here are 3 solid reasons.
Why You Should Gamble With Bitcoins
While cash is still the favored choice for most gambles, Bitcoin and other cryptocurrencies have slowly but steadily made their presence felt. And this is especially true for online casinos. In fact, online casinos were some of the first places to adopt crypto tokens.
So, let’s take a look at the benefits of gambling with Bitcoins.
BTC is private
Gambling is a respectable pastime enjoyed by responsible individuals worldwide. And this is why it’s unfortunate that a few irresponsible players have sullied its reputation.
Due to the stigma associated with gambling, some punters are naturally reluctant to make their activities public. As a result, many often turn to online casinos to enjoy a few hours of playing games of chance.
When you bet Bitcoin, you can discreetly place bets without arousing suspicion from friends, family, and sometimes the authorities. All Bitcoin transactions are tracked and recorded on the blockchain and not via banking infrastructure. All of which lets a punter enjoy his/her betting in private.
In the past, winnings often took several days to be transferred from the casino to your bank account. And if it happened to be the weekend, you’d probably have to spend upwards of 4 days waiting for the transaction to go through.
With Bitcoins, however, you can receive your funds instantly from the casino. This is because of the way cryptocurrencies exist on the blockchain, which is entirely self-regulating. Because of this, there’s no need to be held back by banks or intermediaries.
So that way, you can enjoy your winnings immediately when using Bitcoin.
It’s inflation proof
The enigmatic Satoshi Nakamoto designs Bitcoin to be an inflation-proof currency. This is possible because there is a limited supply of BTCs available worldwide. Once the supply has been exhausted, adding more is no longer possible.
Hence, this allows the market to self-regulate and maintain a self-sustaining equilibrium. Unlike fiat currencies, it is not possible to flood the market with cash or manipulate its value in any way. And this is why BTC is regarded by many to be something akin to a hedge against inflation, thanks to its characteristics.
- Cryptocurrencies are highly volatile. One of the reasons why BTC and other cryptos were so heavily favored was explicitly due to this. At the height of the crypto boom, investors could expect to enjoy triple-figure ROIs thanks to the high asset prices. However, all of this did not come for free. From sudden price crashes to non-existent tokens, more than one investor has gone from riches to rags overnight. So if you intend to bet with BTC or any other type of crypto, keep that in mind. The market for cryptocurrencies is fully unregulated. Governments or any central monetary authority do not back digital currencies. Because of this, the market tends to be vulnerable to manipulation by outside parties.
And this can lead to highly unpredictable market conditions, which could see billions of dollars wiped out in seconds.
- You need a specialized wallet to store your assets. Unlike fiat currencies, crypto is stored in specialized wallets, which come in two forms: hot wallets. Hot wallets are online services that provide easy access to your tokens. While convenient, hot wallets are a potential security risk as they are a favorite target of hackers and cybercriminals. So, as a rule of thumb, I highly recommend that you only store a small number of coins on them. Instead, invest in a cold wallet to safeguard the bulk of your assets. Cold wallets are hardware-style storage devices that do not require an internet connection. This prevents hackers from accessing them, which helps keep coins safe. As an added plus, you can also physically secure your hardware wallet as an added security precaution. Most reputable crypto exchanges and casinos make it a policy to store most of their holdings in cold wallets, which shows how secure this method is.
- Cryptocurrencies are illegal in some nations. Always check whether cryptocurrencies are legal in your country of residence. While Bitcoin and tokens like Ethereum have achieved some form of mainstream recognition, digital currencies are still not recognized as legal tender in many countries. Some countries have even banned access to crypto wallet sites and exchanges to prevent unauthorized use. So always be sure to check whether cryptocurrencies are legal in your country.
Fiat Currency Or Bitcoin: Closing Thoughts
And there you have it, a breakdown of why you should (or shouldn’t) place bets with Bitcoin. While it’s a niche asset, Bitcoin has a role as we move towards a decentralized future.