The casino industry has always been technologically forward in terms of accepting new innovations that can change how people gamble at online casinos and the situation is no different with the entire cryptocurrency and blockchain technology.
Even though this technology was released more than a decade ago, very few people knew about its functionality. However, as cryptocurrencies became more mainstream, casinos were one of the first ones that started to dig deeper into finding a way to utilize this technology.
Fast forward a couple of years, and we have many crypto casinos allowing people to gamble using cryptocurrencies and enjoy the benefits from the process like faster transactions, lower fees, higher security, and much more. This is why crypto casinos are on the rise at the moment.
However, the biggest difference between traditional online gambling with fiat currencies and crypto gambling is in the currencies themselves. Fiat currencies apart from having different values, have no other difference.
On the other hand, all cryptocurrencies are different from one another in terms of the coding and technology used to back up the network. This means that each cryptocurrency comes with its own set of advantages and disadvantages which make it better or worse for certain things.
In today’s article, we will focus on the top two most popular cryptocurrencies – Bitcoin and Ethereum and find out which one is better to use when online gambling.
Which is Better to Use in Online Casino Bitcoin or Ethereum?
If you are new to the crypto industry, both currencies might look identical to you. However, the technology behind them and how they operate on the blockchain are very much different. In order to understand which, one is better, we’ll highlight the advantages and disadvantages of each one.
Bitcoin in Gambling
Being the oldest cryptocurrency that began the entire movement, Bitcoin is also the most present in online casinos. Over the years, Bitcoin has built quite a reputation making this cryptocurrency more trustworthy than others, which is why it is often a choice for online casinos.
Benefits of Using Bitcoin in Online Gambling
Due to the nature of Bitcoin, it provides total anonymity that is safely stored on the blockchain network. In other words, your private information is stored on a decentralized network that nobody has access to.
Unlike fiat currencies where you have to wait for a couple of days to get your winnings, Bitcoin casinos allow instant transactions where you can see your winnings in your wallet in 10 minutes.
Lower Processing Fees
Another benefit that comes from Bitcoin gambling is the low processing fees that are required by the miners in order to process all transactions. Unlike regular banks that might charge you a lot of money for processing transactions, the bitcoin network has much lower fees.
Since Bitcoin is one of the most popular cryptocurrencies in the world, most casinos focus on building games on the Bitcoin blockchain. This means that the only way you can play these unique casino game is if you purchase some Bitcoin.
Bonuses and Promotions
Due to the lower operating cost for Bitcoin casinos, they tend to offer a better Bitcoin bonus for all the players that participate in the process.
Disadvantages of Bitcoin in Online Gambling
Even though Bitcoin managed to climb from $9,000 to $65,000 per coin in a couple of years, we’ve seen huge price volatility as the price now dropped to $19,000. This means that if the price drops you have the risk of losing all your winnings.
Even though the average Bitcoin transaction is processed within 10 minutes, sometimes for the sake of security online casinos choose to process Bitcoin payments manually, which increases the transaction processing time.
Ethereum in Gambling
Unlike Bitcoin, Ethereum is a blockchain platform made on open-source software that generates and runs on a decentralized digital app. These apps give the ability to people to make agreements and conduct transactions with each other. In other words, you can buy, sell or trade without a middle man.
Benefits of Ethereum in Online Gambling
Due to its unique nature, Ethereum brings many benefits to online gambling and one of them is the decentralization on the process. This means that everyone on the network can make unique agreements and once the requirements from these agreements are met, the network will process them automatically.
Ability to Build Games on top of the Ethereum Network
Since the Ethereum network is open-source software, game developers have much more playing options thanks to smart contracts. This means that casinos have more options when it comes to game design that can include digital collectibles like NFTs.
As of now, Ethereum will transition from Proof-of-Work to Proof-of-Stake which will make the entire network more efficient. This will also reduce the processing fees for every transaction.
Disadvantages of Ethereum in Online Gambling
Currently, if the network is very busy, gas fees or transaction fees can go very high
Ethereum isn’t as popular cryptocurrency as Bitcoin in the world of online gambling, which means that there is less use of this cryptocurrency for gambling.
Read Also: Online Casino Development Trends
Hello, My name is Shari & I am a writer for the ‘Outlook AppIns’ blog. I’m a CSIT graduate & I’ve been working in the IT industry for 3 years.