The popularity of cryptocurrency is on an upward trajectory. The value of the most popular currencies is soaring, especially Bitcoin where you will not see the change from $55,000 if you want to purchase a single unit on the exchanges.
An increasing number of retailers and companies accept Bitcoin from customers for purchases of goods and services. Some online casinos, poker sites, and sports betting sites now accept Bitcoin as a deposit and withdrawal option. Online gaming giant Bovada is just one of many Bitcoin-accepting operations you can use.
Bovada were one of the early adopters when it comes to accepting cryptocurrency from its customers. The site even offers a larger $750 welcome bonus for those customers depositing with Bitcoin. Allowing deposits and withdrawals in the world’s number one cryptocurrency makes their products accessible to players from all around the world.
How Does Betting With Bitcoin Work?
Some gambling sites allow you to place wagers with Bitcoin, although these are quite rare, mostly because of the volatility of cryptocurrency. The majority of sites accepting Bitcoin for sports betting and gambling accept your deposit in Bitcoin before converting it to a fiat currency such as British pounds or US dollars.
The reverse happens when it comes to withdrawing your winnings. Your GBP or USD balance is converted into Bitcoin before being sent down the blockchain to your Bitcoin address and wallet. The site you play at does this automatically for you. Of course, there are some transaction and conversion fees involved, but these tend to be small and not out of line when compared to other banking options.
Positives of Using Bitcoin For Betting
There are positives and negatives to using Bitcoin on betting sites, just as there are advantages and disadvantages of using Visa, bank transfers, and e-wallets.
Anonymity is one of the biggest positives. Bitcoin and other cryptocurrencies transactions are completely anonymous and untraceable. This attracts the attention of unscrupulous people, but it has advantages for law-abiding citizens too.
We are aware that some banks and financial institutions refuse to process payments to and from gambling companies. Using Bitcoin negates the need to even try having a deposit processed.
Furthermore, banks look at your financial history when deciding whether or not to accept your loan or mortgage applications. The banks see gamblers as a risk and will often refuse a mortgage or demand a higher interest rate to counteract this risk. Depositing and withdrawing with Bitcoin means they need never know you like to place a £10 accumulator on Saturday’s football fixtures.
Another advantage is deposits tend to be very fast, instant in some cases. Because a transaction cannot be stopped once it starts, the end-user is guaranteed to receive the monies owed to them.
Negatives of Using Bitcoin For Betting
Bitcoin’s volatility is the biggest negative associated with using it on sports betting sites. A single Bitcoin was worth $5,000 on March 16, 2020. The price for one Bitcoin on February 16, 2021, was a staggering $50,000. That is a 900% increase in the space of 11-months. There is no financial instrument in the history of the world that has performed as strongly as that.
Your deposit of $1,000 worth of Bitcoin may only be worth $700 when you come to withdraw it. On the flip side, Bitcoin’s strength against your betting account’s currency could go the other way and work in your favour. Some people can handle this risk, others not so much.
You sometimes find unlicensed or unregulated gambling sites pop up and accept Bitcoin. They do not need to fully follow the rules because all the transactions are anonymous. Always make sure the site you use has a valid license for offering gambling services.