Strengths and weaknesses of crypto gambling
It is an undeniable fact that many online merchants have already adopted digital money as an acceptable form of payment option. Online gambling that is rapidly growing for the past few years is not the exclusion: it is one of the most thriving industries that uses cutting-edge technologies and brings together millions of adroit users.
Since paying with crypto money is becoming a universal tendency, the question of its acceptance has to be solved by each gambling provider as early as possible. Let’s undertake a short analysis of whether such acceptance would be advantageous or disadvantageous for the gaming business’ safety and efficacy.
So, what are the main features of crypto transactions, and what sets them apart from the traditional payment options?
Why crypto transactions seem to be mutually beneficial for both parties?
Privacy and anonymity of personal information is a highly important and sensitive area: it is hard to find someone willing to provide too much of it. For opening and handling their accounts cryptocurrency holders are not obliged to disclose tones of private data, the fact that favorably differs them from the traditional financial institutions. This is why using crypto money as a payment method is very attractive for most of your customers. All they need for a transaction is their public and private keys, and their crypto wallets’ addresses.
Extremely low transaction fees
Crypto transactions are carried out through a peer-to-peer and decentralized computer network that operates on the principle of equality of all participants. The independent and equal crypto-network also means the absence of interest in the collection of high transaction fees. The fees collected for the usage of crypto account are much more affordable than substantial commissions charged by banks. This is a major advantage for all digital money holders.
The decentralized nature of the crypto network enables its enhanced security. While each cryptocurrency unit is subject to a series of decentralized public ledgers, traditional financial bodies manage a single register containing data of all their clients’ proceedings. This is why it is impossible in the crypto area to falsify or change the transaction history, which makes it extremely secure and wins the trust of all those who use digital currency.
Cryptocurrency transactions happen much quicker than traditional financial proceedings. Deposits and withdrawals are made almost immediately, because there is no authorization and waiting periods involved, while for banks it is a part of the normal routine, which takes them days to accomplish. This is equally beneficial to both gamers who can start playing right away, and a gambling operator that receives their payments in a flash.
Different legal status
Some countries still have tough laws regarding gambling and don’t allow their banks to perform financial operations to and from online gaming and betting websites. Since the crypto network doesn’t involve any intermediary institutions including governments, digital money cannot be treated by law in the same way as other financial instruments. Hence, players from such countries will still be able to pay for gambling services with crypto money. This is also mutually advantageous for both parties of a business transaction.
The flip side of cryptocurrency transactions
One must admit that no matter how safe, anonymous, and quick the crypto transactions seem, they are still far from ideal. Although crypto proceedings are highly secure, there is still (though very slight) possibility of being hacked. Unfortunately, a couple of top-level security breaches t in the crypto area that happened recently supports this assertion. Nevertheless, you have to agree that traditional methods of payment are not absolutely immune to the same problem.
A principal drawback is the fact that crypto money is a pretty unstable currency. Players may find themselves in a serious discrepancy between the amount of fiat money that was initially invested in cryptocurrency and the eventual amount it’s transformed into over the time. The extreme volatility of digital money, especially over the last few years, makes it a highly risky financial instrument.
Since the cryptocurrency and everything connected with it are a relatively new area, all the forecasts and prognoses about their future are next to impossible. Gambling operators that chose to adopt cryptocurrency dealings should realize their risks and vulnerabilities.
Selecting a safe and multi-faceted payment system that could be used with digital money and all other traditional payment forms is a difficult task. For that reason, choosing a consolidated platform such as Moneygrator, which combines multiple payment solutions in one application will save your time and efforts and will enable you to have full control over this area of your business.