Are Online Crypto Casinos Really That Safe?
The link between online casinos and blockchain is becoming stronger by the day.
A quick scour of the internet will bring up numerous articles that examine the positive aspects of blockchain within the industry and how it will revolutionize the way we play online casino games. In the wider gaming market, cryptocurrency is exciting analysts and investors alike, with seemingly endless possibilities for use and no ceiling as to how high the value might go.
However, blockchain is a murky market too. People fall foul of many cryptocurrency scams, which creates a sense of concern, similar to that produced by the poker boom that occurred at the beginning of the century and its eventual collapse. Are crypto casinos going to head the same way? We look at the key points.
Why Are Online Casinos So Popular?
Firstly, for cryptocurrency and blockchain to enter an industry with the force they have, they must be popular. Online casinos have exploded in popularity in recent years, not least because of the pandemic. With physical locations closed, many people turned to online providers for their games. Mercury News reveals that since the pandemic eased, revenues have fallen, but only because people have been allowed out once again. Many online providers have retained customers, not only through the accessibility but also the range of games. Providers have adapted quickly to their new audience. For example, Gala Casino offers live casino games such as Mega Fire Blaze Roulette and Clubhouse Blackjack 6. These are not your typical online games with simple graphics, but live games hosted by real people. That is one area online providers have exploited very well during the pandemic to keep people coming back. They innovate and adapt, and that brings us to the blockchain.
How Do Online Providers Use Blockchain?
Online casinos can accept deposits and make payouts in crypto, which has benefits for both parties. Transactions are quick and easy, and they benefit from the anonymity offered by blockchain. They also exclude third parties, which means no risk of your data being stolen or your account being breached. The lack of a middleman also means no additional charges for handling your money, which results in better rates for you, better prizes, or lower costs for the provider. Some providers have embraced this wholeheartedly, while others offer both payment methods to accommodate more potential customers.
What Are the Dangers?
This is the pertinent question – surely it is too good to be true? If blockchain were such a revolutionary way to facilitate payments for online casinos, why would everyone not use it? It’s a strong point, and the single biggest reason is the fear over who you are playing with and whose money is being taken. Structural Geology explains how crypto has been targeted by criminals as a method of cleaning dirty money, and that means you could be sitting across a virtual poker table with someone playing with the proceeds of crime. You are still pretty safe in terms of your money, but there’s an ethical question that is yet to be answered. Bloomberg refers to the market as ‘red hot but unregulated’, and that lack of regulation concerns people. It is the same lack of regulation that brought down the online poker world in 2011.
So, Are Crypto Casinos Safe?
The answer to that question depends on your perspective. Blockchain offers the end-user more safety and security than most payment methods, and given the rise in users over the last 18 months, that can only be a good thing. Any boom industry can become a magnet for those looking to defraud you, so the safer they are for the end-user, the better. The real question over safety is a wider one, encompassing not just crypto casinos but the whole spectrum of cryptocurrency trading. However, as a general answer, yes, crypto casinos are safe.