Online betting and gambling platforms have been using digital payment services for decades now. Their whole business model revolves around offering their customers the most comfortable payment methods imaginable with modern technology. It’s been around 6 years now that gambling, sports betting and eSports betting with Bitcoin has become a thing. It was first introduced in 2013, by an online gambling platform, and has spread like wildfire ever since.
Many online casinos didn’t see the digital assets as a reliable means of making transactions in the beginning, but soon enough the demand grew to unimaginable proportions, so even the largest of entities had to accommodate these customers somehow.
Nowadays, it’s extremely easy to find platforms such as online casinos or eSports betting platforms offering bitcoin transactions, and proudly promoting it on their homepage and their marketing campaigns. This was due to customers demanding an anonymous way of filling up their account for their betting and gambling needs, and bitcoin was the best way to accommodate them.
Nowadays, it’s not surprising to see online betting platforms offering bitcoin transactions not only for topping up a player’s account but actually placing bets on a regular basis. Yes, bitcoin gambling and bitcoin eSports betting are a thing, and what a wonderful thing they are. Most websites rely on the fast and effortless transaction system for the technology, while others try to implement it in their platforms and actually make it a staple currency used for bets, withdrawals as well as deposits. But why is it so beneficial for the user?
In most cases, you’ll hear that placing eSports bets with bitcoin is good because it’s faster and more affordable, due to lower fees and much faster transaction systems thanks to the blockchain. But what many tend to ignore is that the anonymity of the technology is its primary source of value, not only for the player but for the company as well.
In most cases, we wouldn’t like people to find out our identity when we place bets online. It could lead to some family confrontation or overall disapproval from people surrounding us. Therefore, using bitcoin is a great way of concealing our identity and not having anybody confront us about it.
When it comes to safety, it is also a great advantage against the watchful eye of the bank. For example, whenever you make a transaction, it is always recorded on the bank’s payment history repository, which can later be used against you in some ways. Should you make a “questionable transaction”, such as a deposit on a betting website, the bank may deem it as dangerous in the future and refuse a loan you may need for a house or a new piece of hardware. Let me reiterate.
Every single bank has a thing called the “credit score system”. The credit score system is there to measure your eligibility for a loan, be it personal, business or mortgage-related. Therefore, damaging that loan would be detrimental to your chances of successfully being issued one in the future. Here’s how the credit score is usually damaged:
Suspicious transactions may contain a whole slew of various payments. It could be a transaction towards an account that has been deemed untrustworthy. It could be a large transaction to an offshore account without explanation. Or, very recently, a transaction to a gambling or betting website.
Betting on eSports with bitcoin eliminates that danger of damaging one’s credit score with their bank. Which means that they’re much safer to apply for a loan in the future, at the same time as enjoying their gambling and betting habits. However, the credit score is only one of the advantages of eSports betting with Bitcoin, let’s look at the others.
When depositing on a betting website, the transaction usually processes instantly, or it takes at least a couple of minutes. However, when it comes to withdrawing the funds from the platform, depending on what method you choose, it could take a whole week of waiting to finally have it sent to your account.
Furthermore, transactions from a gambling website to your bank account are also deemed as “untrustworthy”, therefore the safety issue is still here.
Bitcoin is notorious for its fast transactions and relatively low fees. PayPal has around 3% of your transaction in fees, while Skrill has 2%. When it comes to Bitcoin, the fee can be chosen by the payment issuer themselves. For example, if you’re ok with waiting around 24 hours for the payment to process, you can simply ignore the fee completely. But, if you want an instant transaction to occur, then indicating a 0.1% or around 0.5% in fees will guarantee it.
Overall, eSports betting with bitcoin allows you to take control of the fees you pay for the transactions.
The good thing about bitcoin transactions is that it cannot be charged back without manual confirmation. Meaning that whenever you transfer the funds, they are going to appear on your account regardless if they meet the standards of the platform or not. It will not be denied or taken away from you, therefore you’ll have much more flexibility of starting the betting session.
In most cases, the bettors struggle with making timely top-ups of their accounts, as the transactions may take quite a while to be confirmed. Although it was mentioned above that the transactions for deposits are instant, the appearance of the funds on your accounts may take a few hours before the financial office of the company confirms it. In most cases, those transactions could be reversed or only partially accepted due to limits.
In most cases, you’ll find that bitcoin has a higher limit of funds when you withdraw and deposit, compared to traditional payment methods. That’s why most eSports bettors choose bitcoin as higher bets yield better returns, even if the odds are relatively lower.
Much like bitcoin is advantageous for the customer, it also carries some value for the company as well. One of the most important features is the global transaction system for the cryptocurrency. Although there are more than enough options that provide this feature, such as Skrill, Neteller and PayPal. Most casinos and eSports betting websites find that bitcoin transactions are much easier to handle.
For one, it’s a guaranteed transaction, nothing can stop it unless there’s a bug in the blockchain, which rarely happens. Furthermore, the casino may benefit much more due to the volatility of the market.
Volatility means when prices for a specific currency or in this case, cryptocurrency, change quite often. Therefore, a customer may deposit around $100 worth of bitcoin on one day, and the next day it could be worth $110. It is all about the speed at which the company handles exchanges once it receives the coin.
One example of this is Eric Voorhees, which was the first online betting website to accept cryptocurrency payments. At that time bitcoin was worth between $100 and $1000 throughout the year. Therefore, once the company received payment in bitcoin during June 2013, they simply got $100, but that $100 turned into $1000 in November of the same year. You can imagine how much benefit casinos like these saw during the 2017 crypto craze.
At this point, bitcoin can be used for a variety of services and items online, but some investors still struggle to find some use for them. Promoting an eSports betting platform that accepts bitcoin to these people is a very effective way of acquiring new customers. At the very least, these people will be given an opportunity to liquidate their assets without too much hassle on a crypto exchange.
As soon as the casino receives the bitcoin payment, they display the amount in USD or the native currency. The withdrawal can then proceed in fiat currency, so one might say that bitcoin eSports betting websites are like an alternative crypto exchange for the players.
We’ve tried to outline all of the benefits that one may find through bitcoin transactions, but it still may not be convincing for many. One of the biggest issues is the conversion that takes place. Not everybody quickly understands how much bitcoin they are depositing on the platform, therefore overspending should be expected.
Thankfully, the conversion tool is slowly being added to every platform in order to make the depositing process as risk-free as possible.
Overall, here’s a list of the benefits one may expect when making a deposit with the coin:
In a sense, the website could also act as a repository for the coins. Since most of the times, hackers target crypto exchanges, a player’s crypto portfolio would be much safer on a betting website. That might sound absurd, but from a very neutral standpoint, it seems to be the case, as there are no recorded cases of such platforms being hacked or cryptos being stolen.