Australian online casinos will benefit from adapting bitcoins
Aussie online casinos are considering becoming leaders in the online gambling industry as they examine the option of adding bitcoins to their list of gambling payment options. Casino advisors believe that Australian mobile casinos will benefit from adapting bitcoins as a payment method because it will draw younger, more web-savvy players to the Aussie online casinos where they can use their bitcoins as they engage in casino entertainment from their mobile devices.
Bitcoin has been a controversial currency alternative since its introduction in 2009 but its growing recognition in the world’s money markets has led to its acceptance by more and more businesses. Bitcoins are still not used for supermarket purchases but increasingly, companies who are prepared to invest time and effort in a stable currency alternative are accepting Bitcoin payments.
Bitcoin is a decentralised digital crypto currency that operates using a peer-to-peer network. It is, essentially, a code that is traded. Bitcoins were invented by an anonymous developer in 2009 as, many people believe, a reaction against the downturn that occurred that year in the world’s economy. The developer handed over control of the currency to the Bitcoin Foundation which manages the coins today.
Bitcoins are “mined” or “made.” From the beginning the system was conceptualised as a limited currency with a maximum of 21 million coins. Bitcoins can be traded for other currencies or for real world goods. While no more bitcoins may appear after the original 21 million coins are mined, bitcoins can be subdivided so owners can use the currency to purchase goods and services worth percentages of the value of a bitcoin. The value of bitcoins has fluctuated widely over the five years of its existence. Whereas bitcoins started out at a value equalling $.13, today in 1 October, 2019 the value of a bitcoin stands at approximately$8000 — per coin.
The entire currency operates via a peer-to-peer network. A blockchain — a public ledger to which all bitcoin owners have access — records the transactions and movements of all existing bitcoins. These codes are secured using encrypted digital wallets. Transactions cannot be reversed but new transactions are constantly being recorded.
Bitcoin wallet owners have a public address and a private key. People can send bitcoins to a user’s wallet using his public address. The owner can then access that public address and make his own payments via his private key.
Pros and Cons of Bitcoins
While bitcoins are becoming more acceptable to the world currency exchange there are many considerations involved in adopting them. Some users prefer bitcoins currency because they protect the user’s identity and money. It’s not necessary to disclose personal identity information in a bitcoin transaction, nor is an identifying number, such as a credit card number which can be stolen, needed. Transactions can be made at a low cost or at no cost at all. No foreign transaction or exchange fees are needed for international payments.
On the con side however the transactions are irreversible and there’s no resource if the user wants to dispute a bitcoin payment. There is no liability protection for bitcoin use. Additionally, bitcoin value fluctuates wildly, by as much as $500 within a single three-month period.
Bitcoins for Australian Mobile Casinos
Bitcoin use is growing, despite the lack of stability. Financial advisors are divided in their opinions of whether it’s advisable to invest time and money in mining and using bitcoins but Australian casinos are among the first to seriously consider accepting bitcoins as deposit funds.
These casino venues, both land-based casinos and Aussie Mobile Casinos, are looking at the whole picture which includes saving money and minimisation of risks. Using a provider, such as the “Coinbase” provider, to process transactions allows for free transfers for the first 1 million dollars-worth of bitcoins and then a flat 1% fee on all further transactions. That’s a significant savings when compared to the three to four percent transaction fee that credit card companies charge.
In addition, many exchanges conduct instant Bitcoin conversions to minimise the risks of volatility and consumer chargebacks, PCI compliance and hackers are no risk. Bitcoin merchants generally use a simple smartphone or tablet app to process payments.
Bitcoins in Australia
For Aussie casinos the currency’s growing acceptance in Australia offers another reason for them to offer their clients a Bitcoin payment option.
Australian businesses see that bitcoins can give them an edge in an increasingly competitive marketplace. Using bitcoins saves huge amounts in exchange rate costs and banking fees, money that can then be funnelled into developing new games and new ways for people to play. Its growing popularity means that there are now two bitcoins machines in Australia so it’s easier than ever to use the coins in the “real world.”
Most importantly for many gamers, conducting their casino transactions via bitcoins makes it easy for people who don’t have access to banks, or who don’t want to link their gaming activities with their personal bank accounts, to facilitate their casino transactions.
Bitcoin Casino Payment Options
Mobile users can conduct all bitcoin transactions directly on their mobile device so regardless of where and when they’re playing they’re able to make their deposits and withdraw their winnings via their handheld smartphone or tablet device.
Two Las Vegas hotels, the D Las Vegas Casino Hotel and the Golden Gate Hotel, have led the movement among casino-hotels to offer bitcoin payment options. As these venues work to maintain a technological edge in the 21st century the hotels have discovered that a large enough percentage of their clientele is interested in bitcoin payment options to make it worth their effort to offer this alternative. The casinos will process bitcoin payments through the BitPay company
The Golden Gate hotel was built in 1906. It is the oldest casino-hotel in Vegas and has a history of pioneering new technology — it was the first casino to install a telephone in 1907. Co-owner Derek Stevens notes the importance that the casinos place on making the casino experience a convenient one for their patrons. “….We’re quickly adaptive to new technology,” said Stevens who also mentioned that several of his customers had requested that the casino make the bitcoin payment alternative available.
American regulators are not likely to approve bitcoins for casino activities any time soon so for the meantime, the Las Vegas hotels will limit their bitcoin transactions to hotel expenditures. Australian casinos, however, are considering bitcoin payments for gaming payments.