Advantages & disadvantages of using Bitcoin
Bitcoin is a new form of currency that had a massive head start back in 2009. Today it is the best-known cryptocurrency that can be used to purchase goods or services via the Internet without intermediaries. While some may ridicule it, more and more organizations after some investigation admit that Bitcoin may hold a key to the new age in global finance.
- — It is decentralized. No one can take your Bitcoins away from you or freeze your account, due to sheer absence of central regulating authority in the system. You own your money and control your transactions.
- — Your purchases are not taxed. Again, owing to absence of single central authority that would regulate Bitcoin transactions.
- — It is secure. Your payment information cannot be stolen away from you. Bitcoin transactions do not require any personal data to be submitted, thus protecting you from identity theft. And there can be no chargebacks – once sent, Bitcoins are gone. Sender cannot reverse his transaction which means fewer risks for merchants.
- — It gives you privacy. Since no personal information is attached to your Bitcoin wallet, people do not know who purchased what. At the same time it is transparent, meaning that anyone can find information on addresses and their balances in a public ledger.
- — It is time-saving. It does not matter where you are and where you want to transfer your coins to: be it an international transfer or a payment to your neighbours. With Bitcoin such transfer becomes close to instantaneous.
- — Zero or low transaction fees. Since there are no middlemen in Bitcoin network, no one will charge you for anything. There might be fees for faster processing of transactions or conversion of bitcoins into fiat currency. Still, the costs are kept very low.
- — It is not subject to inflation. The number of Bitcoins to ever be issued is limited to 21 million and Bitcoin volume growth is predictable, so they cannot be churned out like fiat currencies and poured into economy.
What are Bitcoin advantages specifically for an online casino operator?
From an online casino operator’s point of view, as well as from the player standpoint, Bitcoin is the perfect “gaming coin”.
Players love Bitcoin because of:
- — Low cost of transaction
- — High speed of transaction
- — Anonymity
- Bitcoin games can be made “Provably Fair”, which is a new concept of fair gaming letting players to verify fairness themselves with no doubts
iGaming operators will appreciate:
- — Control over finances on their side, no third parties involved in transactions
- — Bitcoin is a universal, global currency
- — Faster time-to-market not bound by the red tape
Bitcoin temporary disadvantages
Despite a range of obvious inherent advantages Bitcoin has its own flaws, many of which are believed temporary.
- — Bitcoin is volatile. Its price bounces up and down every day namely because of the limited amount of Bitcoins and an increasing demand for them. Though eventually its price will settle, it still is not recommended to keep significant savings in Bitcoin.
- — It is experimental. Bitcoin is in its infancy and its features are still being developed. As Bitcoin usage grows, it becomes more accessible and its features and usage practices more polished.
- — Not a “household” payment method (yet). Only a limited number of places and websites accept it as payment. So you cannot go, say, to the shopping mall and buy the same range of goods with Bitcoins as you would with your good old credit card. This said, worldwide Bitcoin adoption is growing with every month.
- — It is untraceable. Anonymity, viewed as an advantage by many, may draw in criminals in the sense that it is ways easier to sell illegal items when you cannot be traced.
If you decide to explore Bitcoin, try to learn as much information on its usage and security measures you need to take to keep your coins safe. SoftSwiss has accumulated substantial expertise with Bitcoin and we are able to provide you a lot of guidance on the matter. If you decide to launch a Bitcoin casino, you can count on us as the leading technological expert in Bitcoin as it relates to iGaming.
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