Digital payment services have been used by online gambling and betting sites for decades. Their entire company strategy is based on providing customers with the most convenient payment options conceivable with current technologies. Since about 2006, Bitcoin has been used for gambling, sports betting, and eSports betting. The gambling platform on the Internet that originally introduced cryptos was SatoshiDice, which was back in 2012, and ever since then, it has taken up like wildfire.
Early on, numerous online casinos didn’t consider digital assets to be a trustworthy method of conducting transactions, but as soon as the demand reached unfathomable heights, even the biggest organizations had to find a way to serve these clients.
Currently, it’s very simple to identify websites that support bitcoin transactions, such as casino sites or eSports betting sites by the link, and they often proudly advertise this on their homepages and in their advertising campaigns. Customers wanted an anonymous means to fund their accounts for betting and gaming purposes, and bitcoin was indeed the ideal solution to meet their needs.
These days, it’s not unexpected to see online betting firms enabling bitcoin transactions for both funding a player’s account and regularly placing bets. Yeah, there’s such a thing as bitcoin eSports betting and bitcoin gambling, and what beautiful things they are. Many sites rely on technology that allows for quick and simple transactions, but some aim to integrate it into their platforms so that it becomes a standard means of payment for bets, withdrawals, and deposits. But why does the user benefit from it so much?
Article Breakdown
Bitcoin-Based eSports Betting and the Customer
Most of the time, you’ll hear that using bitcoin to wager on eSports is a fantastic idea because it’s quicker and cheaper thanks to lower costs and significantly faster transaction methods made possible by the blockchain. But many people disregard the fact that the technology’s main benefit—for both the player and the business—comes from its anonymity.
For the majority of the time, whenever we place bets online, we don’t want anyone to know who we are. That can cause a family argument or general criticism from those around us. Hence, utilizing bitcoin is a perfect way to hide our identities and avoid having anyone ask us about them.
It also provides a significant benefit in terms of safety as compared to the bank’s close supervision. For instance, every transaction you make is automatically logged in the bank’s payment history database, which might therefore turn against you in certain circumstances. The bank might view your future “dubious transactions”, like making a deposit on a betting platform, as risky and deny you a loan you might require for a home or new equipment.
- Good for Fending off Banks
There’s a thing called a credit score system at every single bank. Your suitability for a loan, whether it be for personal, business, or mortgage-related purposes, is determined by your credit score. Hence, defaulting on that loan will negatively impact your prospects of receiving one in the perspective.
How such a credit score is often lowered is as follows:
- failure to repay a prior loan,
- payment delays,
- filing for bankruptcy
- inadequate income,
- no collateral,
- criminal record
- suspicious business dealings.
Transactions that are suspicious may include a wide range of different payments. It might involve a payment made to an account that was flagged as suspect. It might involve an unexpectedly significant transfer to an offshore account. Or, most recently, a payment to a website that offers gambling or betting.
The risk of harming one’s bank’s credit score is eliminated when betting on eSports using bitcoin. This makes it safer for them to request a loan at a later date while still engaging in their gaming and betting practices. Let’s examine the other benefits of eSports betting with Bitcoin instead of just focusing on the credit score.
- Speed and Commissions
On betting websites, deposits typically process instantaneously or take at least a few minutes to complete. However, depending on the method you select when withdrawing money from the platform, it can take a full week before the money is really sent to your account.
Moreover, transfers from a gambling site to your bank account are likewise considered to be “unreliable”, therefore the security concern persists.
Bitcoin is renowned for its quick transactions and minimal fees. While Skrill charges 2%, PayPal charges about 3% of every transaction as fees. When it relates to Bitcoin, the payment issuer has the option to determine the fee. For instance, you can just ignore the cost if you don’t mind waiting roughly 24 hours for the transaction to process. But, if you’d like an immediate transaction to happen, designating a 0.1% or roughly 0.5% in costs will make it happen.
Ultimately, eSports wagering with bitcoin gives you control over the transaction costs you pay.
- Refunds
The benefit of using bitcoin is that transactions can’t be reversed without human confirmation. This means that regardless of whether the money fits the platform’s requirements or not, anytime you transfer it, it will show up on your account. It won’t be removed from you or refused to you, giving you considerably more freedom to begin the betting session.
The majority of the time, bettors struggle to timely top up their accounts because it may take a long for the transactions to be confirmed. Although it was said above that deposits are instantaneous, it could require a few hours prior to the company’s financial office verifying the appearance of the monies on your accounts. Due to limitations, those transactions might typically be revoked or only partially approved.
The maximum amount you may withdraw and deposit with bitcoin is typically higher than it is using more conventional payment methods. Because greater bets provide better returns, even though the chances are relatively low, most eSports bettors opt for bitcoin.
Bitcoin-Based eSports Betting and the Company
Similar to how bitcoin benefits the client, it additionally provides certain value for the business. The cryptocurrency’s global transaction system is one of its most crucial aspects. Yet, there are several options that offer this capability, including Skrill, Neteller, and PayPal. Bitcoin transactions are far simpler to manage, according to the majority of online casinos and eSports betting sites.
For starters, it’s a guaranteed transaction; nothing can thwart it unless there’s a blockchain bug, which is extremely unlikely. The market’s turbulence may also work in the casino’s/sportsbooks’ favor more than usual.
Volatility is the state of having frequent changes in the price of a certain currency, in this case, a cryptocurrency. As a result, a customer’s bitcoin deposit of $100 one day could increase to $110 the following day. It all depends on how quickly the business handles exchanges after receiving the coin.
Erik Voorhees, who established the first online sportsbook to accept cryptocurrency payments, SatoshiDice (sold 10 years ago) is one example of this. During that time, the annual value of bitcoin fluctuated between $100 and $1,000. As a result, when the business received the payment in bitcoin in June 2013, they only received $100; nevertheless, in November of that same year, that $100 became $1000. You can probably guess how much the 2017 bitcoin craze benefited casinos like these.
Why Should Betting Sites Take Bitcoin into Account?
Although bitcoin may currently be used for a wide range of online services and goods, some investors still find them difficult to put to use. Advertising an eSports betting site accepting bitcoin to these individuals is a highly effective approach to attracting new clients. These folks will at the very minimum have the chance to easily sell their assets on a cryptocurrency market.
The sum is shown in USD or the local currency shortly after the casino confirms the bitcoin payment. One could say that bitcoin wagering platforms are similar to alternative cryptocurrency exchanges for the players since the withdrawal can subsequently be made in fiat currency.
Why Should You Use Bitcoin to Wager on Esports?
Although we’ve attempted to list all the advantages of using bitcoin for transactions, many people may not find this information persuasive. The conversion that occurs is one of the main problems. Overspending is to be expected because not everyone immediately realizes how much bitcoin they are depositing on the platform.
To make the depositing procedure as risk-free as feasible, the conversion tool is steadily being offered to every platform, which is a blessing.
Here’s a summary of the advantages of using the coin to make a deposit:
- transactional speed,
- anonymity,
- lower commissions,
- a guarantee of confirmation,
- instant deposit.
The website might also serve as a sort of vault for the coins. Since crypto exchanges are frequently the target of hackers, a player’s cryptocurrency portfolio would be considerably secure on a betting platform. Although it may seem silly, there have been no incidents of cryptos getting taken or such sites being hacked, therefore it appears to be the case.