Cryptocurrency is still unclear within a large population even though it has become popular amongst early adopters and investors. There is news about the high value of Bitcoin and other coins. People are still unaware of why it was created. Another aspect to look into is why digital currency excites adopters and reasons they persist to evolve every day taking new forms and shapes.
Reason behind cryptocurrency introduction
People always need support from 3rd party companies for fulfilling their transaction payment either with funds or hold it safely. Many folks with autonomous characteristics find this frustrating. For example, amongst the early adopters, online gambling sites play a huge role. It allowed players to gain control rather than depend on 3rd parties to allow the procedure. Using cryptocurrency, you can play on bitcoin casinos or buy things online. There is no one to hold you back. The crypto coins are yours!
A bunch of developers designed an innovative way to avert credit card companies, banks, and other financial institutions. They had to plan a way, where people transferred money from point A to B without the need to be present physically in the same space. If there was no physical contact then how to trust the integrity of the proposed transaction was another challenge.
For this trust issue, the developer’s group designed a BlockChain technology, which gave birth to Bitcoin in 2009. Bitcoin started a cryptocurrency revolution. Blockchain is a digital record, where every new block is added to a new transaction. A compilation of computers adds blocks after solving a coding problem. The first user to solve the coding problem is the verifier and offers a trust factor. They are called miners and are rewarded with digital coins for their success.
Reasons people started using cryptocurrency
In the early years, Bitcoin was the only crypto asset, so it became popular in the financial and technological arena. The main reason it captivated people and grew in popularity is because of –
- Speed – Using crypto coins, the waiting period for payment to be processed is significantly less. Verification on the blockchain does not take time and you can see your digital wallet updated in no time. On the other hand, credit card transactions and bank transfers take days to settle.
- Security – Digitization has made it easy for scammers and hackers to steal personal data. They just need your debit or credit card details. Another worse scenario is when the vendor you bought goods from [using a credit or debit card] is hacked then your personal and financial information possibly is breached.
With cryptocurrency, this is not an issue because the coins that need changing hands are mentioned in the transaction. The remaining stays safe in the offline digital wallet storage.
- Global recognition – Today, businesses are looking for ways to capture the foreign market, and cryptocurrency offers this chance. Several nations and states don’t have access to financial institutions but are connected with an internet connection. Cryptocurrency allows such folks to trade with foreign countries using coins without the concerns of obstacles from borders or tariffs.
- No fees – Credit card or bank transfer costs significantly. The processing charges are high, so staying afloat is daunting. With crypto-assets, there are no fees attached. Besides, they can use crypto coins without any support from 3rd parties. It is financial independence that no one desires to let go.
How is cryptocurrency beneficial in gambling?
All the activities that people do use fiat currency are done using cryptocurrency. The only downside at this moment is that only a few people and businesses have approved it as a payment mode. Ensure that you don’t miss out on the opportunities that crypto coins offer.
- No identification is needed – Credit card or bank card use needs people to offer personal and financial information to complete a transaction. Even if the transaction is of one or two dollars, your entire account is offered to the vendor. The cards work on the ‘Pull’ protocol, so they pull your entire data regardless of transaction size.
On the other hand, cryptocurrency functions on the ‘Push’ system. It means if you use 2 BTC to buy then only that information is shared with receivers or vendors. Thus, your confidentiality worries are eliminated using crypto coins.
- Settlement speed – credit card or bank transfer payment processing takes time and the delays can be frustrating for small businesses. It can hamper the cash flow but crypto transactions get completed in minutes or within two days.
- No frauds because transactions are irreversible – Each transaction on the crypto network is digitally recorded, so every user can see. Therefore, the possibility of deception is zero. Besides, no concerns about chargeback attempts like with credit cards. Blockchain technology makes sure that every payment goes through efficiently without any incident.
- Few overhead fees – There are no deposit & withdrawal fees because the casinos acquire a chance to use cryptocurrency with an extremely low house edge.
- No current account – Cryptocurrency can be used anonymously, so the players don’t need to open an account. Therefore, there is no need for the online gambling site owner and the players to protect and manage their funds and accounts.
- Provably fair – Gambles using blockchain technology are open for verification, therefore the players are ensured that they are playing a fair game. Gambling operators cannot interfere or cheat with game outcomes or payments.
With a plethora of benefits, cryptocurrency also has its downsides associated with regulation, anonymity, and irresponsible gambling. Digital currency is not regulated and the power to use it anonymously without opening an account increases the threat of spending more than one can afford. Cryptocurrency is a digital currency and players fail to associate it with real money value.
Cryptocurrency is appealing to people with an independent spirit, who desire to control their finances. The future of cryptocurrency is assumed to be promising as it has survived and evolved through multiple obstacles. As the coins gain more exposure, people will try to find innovative reasons to use them.