Wondering what Cryptocurrency is and why it’s being mentioned in relation to online casinos? Lets take a look.
Well, let’s try this: ever heard of Bitcoin? That’s cryptocurrency. Explaining exactly what cryptocurrencies like Bitcoin are can be a little tricky but, essentially, they are decentralised digital cash systems. They are decentralised because they are not under the control of any government or financial institution.
You can get hold of cryptocurrency by purchasing it from sellers and the value of the currency is determined purely by supply and demand. With the recent market crashes that we have seen in centralised systems dependant on the gold standard or value against the US dollar, combined with the rise of e-commerce, the popularity of Bitcoin, in particular, has sky-rocketed since it was first introduced in 2009.
Advantages of Cryptocurrency
- You’re Not at the Mercy of Banks or Government
With the traditional fiat currency system – and even with third-party service providers like PayPal – the bank or institution owns your account. This means it has the power to freeze your assets at its discretion. Moreover, governments artificially control the supply – and, therefore, the value – of currencies. This is the primary reason for the recent global economic crisis.
With cryptocurrency, all of these concerns become non-issues because you are fully in control.
- Your Identity is Protected
Merchants gain full access to your line of credit when you pay using, say, a credit card. This leaves you vulnerable to both fraud and identity theft. Cryptocurrency, by contrast, allows you to send only as much money as you have agreed to pay. You also don’t have to share any other details.
- Access is Universal
A staggering one in three Kenyans now owns a Bitcoin wallet linked to their mobile devices. In fact, any one of the 2.2 billion people who currently have internet access also has access to cryptocurrency facilities. This means you can transact with people all over the world without having to deal with pesky exchange rates and conversion fees.
- It Can Be a Profitable Investment
Many people now choose to purchase cryptocurrency instead of investing in the stock market. That’s because, as international interest in the currency grows, so does its value – supply and demand, remember? In 2013, the value of Bitcoin rose to a jaw-dropping 6000%.
Be warned, however, that the converse is also true; if cryptocurrency does prove to be a fad, investors stand to lose millions. Only time will tell and at present, top online casinos are still wary of accepting this form of currency, and in most cases, are steering clear for now!