Any online gambling site comes with risks to players. Bitcoin casinos offer a few distinct advantages when it comes to player safety. They also have a few drawbacks. Here is a look at the safety pros and cons of Bitcoin casinos.
Safety Advantages Of Bitcoin Casinos
The biggest safety advantage Bitcoin casinos provide players is privacy. The Bitcoin currency requires less information than traditional payment methods. This protects players' personal information, as information that is not shared cannot be lost or stolen. While some casinos may require personal information for their own records, others require very minimal registration information. Players enjoy relative anonymity. This means that there are fewer opportunities for players' information to fall into the wrong hands.
Bitcoin does not require sensitive financial information. There are no credit card numbers to exploit, and very little financial information with which to link an individual to a particular transaction. All a player has to do to pay with Bitcoin is provide a randomly generated address to the other party. The transaction is processed with zero to minimal fees, and the money is delivered within ten minutes, 24/7, around the world.
Each Bitcoin transaction is transparent and neutral. While players enjoy the privacy of the Bitcoin transaction concept, they also know that there is a record of each transaction. The block-chain logs every transaction ever made with Bitcoin. It is nearly impossible to alter or falsify the block-chain. It is impossible to falsify funds or write a bad check with Bitcoin.
Provably Fair
Most Bitcoin casinos offer provably fair games. Using the same cryptographic concepts that operate Bitcoin, Bitcoin casinos use a cryptographic one-way hashing algorithm to prove the randomness of each game.
The cryptographic one-way hashing algorithm operates using a hash function. It assigns a value to data of variable size and maps it onto data of a fixed size so that it can be randomly generated. In a casino, this means that a deck of cards is assigned a value that can then be randomly generated. For instance, the ace of spades is often AS, the two of spades 2S, and so on. AS and 2S can be computed because they have numerical value. The ace of spades is an idea. When the ace of spades is turned into an integer, it can then be organized.
Cryptographic hash functions use cryptography to hide the values in the function, making the formula almost impossible to replicate. The dealer and the player both provide a part of the function, and the player can prove that the deal was fair by entering the values into the calculator provided by the site. If the values match, the deal was random. There is no way for the dealer to know the player's input, called the “player seed.”
Provably fair games protect players against fraudulent casinos. Players can test the randomness of each deal themselves, guaranteeing that each hand is 100% fair and random. Provably fair games eliminate the need for third party oversight. This allows casinos to lower administrative costs, providing players with a higher return on their investment and a lower house edge.
Legality
Bitcoin is not yet a recognized form of currency. This is exciting news for U.S. players. The lack of regulations allows U.S. players to access online casinos legally without fear of legal retribution.
Transparency
Bitcoin transactions are transparent and provably fair games are transparent. Bitcoin users are concerned with transparency and privacy. Reputable Bitcoin casinos try and emulate this by providing as much information to players as possible. Most disclose the house edge and the game rules. Transparency helps further eliminate the need for third party oversight, keeping costs down.
Safety Disadvantages Of Bitcoin Casinos
Bitcoin casinos are a new concept. Like all new concepts, there are still a few kinks to work out. Bitcoin casinos are unregulated and many are still in Beta testing.
Bitcoin Casinos Are Unregulated
Most Bitcoin casinos have provably fair games. That does not necessarily mean that the casino is legitimate. As with any online casino, there are disreputable organizations out there whose sole aim is to exploit players. These sites might advertise provably fair games to lure players in. All this means is that the games themselves are provably fair. It does not prove that the casino will pay the player their winnings.
Traditional online casinos can opt to be “certified fair.” A third party investigates the casino to ensure that the deals are fair, the financial information of players is secure, and the casino plays by the rules. Bitcoin casinos do not require this level of oversight. Some players find the decentralization appealing. Players can see for themselves whether the deal is fair in provably fair games. An argument could be made that a certificate is not as secure as the proof a player can see for himself. An argument could also be made that provably fair games do not entirely ensure the security of players because they only look at the deal itself. How these casinos handle player information and game rules is still in question.
Bitcoin Casinos Are New
Their very newness carries risks. The test of time offers proof that a casino consistently provides players with fair play. With so many new Bitcoin casinos popping up, players do not have the luxury of analyzing all the site reviews since 1997. They must rely on common sense to decipher which Bitcoin casinos are legitimate and which are not. Some sites are still in Beta testing. Kinks arise and are worked out as they come, sometimes harming players.
No Online Casino Is Truly Safe
It can be tempting to think that a site that is certified fair will do its best to protect your funds. That does not mean that outside tampering or internal problems will not harm you. Any online gaming site comes with risks. While it is difficult to steal bitcoins, that does not mean it is impossible. Hard as it is to trace an individual by a bitcoin transaction, it can be done by a highly skilled hacker. Credit card information is stolen every day, and as Bitcoin grows in popularity it too will likely fall victim to misuse by cyber criminals. Spending money online comes with inherent risks.
Even if the site is presumed safe, sometimes the biggest threat to your safety is yourself. Gambling is fun. It can also be addicting. If you think you may have a gambling problem, it is in your best interest to get help before you harm yourself or your family. Bitcoins are a real currency. Play carefully and do not bet outside your means.
Bitcoin casinos are just as safe as traditional casinos. They have distinct advantages and disadvantages. Players who are aware of these pros and cons and take appropriate action to protect themselves can enjoy Bitcoin gambling safely.