Bitcoin and Gambling in 2022: The Biggest Pros and Cons
Ever since that legendary Bitcoin pizza, the world’s first cryptocurrency has grown to become widely accepted in the crypto world. Online casinos, companies at the bleeding edge of the tech world, were among the first to adopt crypto payments and allow their players to deposit – and win – Bitcoins.
But how do things stand now, at the end of 2022, when the world is in turmoil? Here we look into the current affairs and the pros and cons of using Bitcoin at online casinos.
The State of the Crypto Market
Bitcoin’s value has been on a steep decline in the past nine or so months. Other cryptocurrencies have followed suit as the market entered a bearish phase. Compared to the end of 2021, when Bitcoin was worth around $50,000 and on the rise, its current value of $17,000 is a pale image of its former glory.
The year 2022 has seen several dips in crypto value, driven by global economic and political (and again economic) developments. We’re in another recession, so it’s no surprise that crypto coins have taken a hit along with the rest of the market. Still, Bitcoin has seen an unprecedented dip in value. Some analysts say this year has seen the worst quarter for Bitcoin since its inception in 2009. As a matter of fact, the overall crypto market cap dropped by a massive $1.2 trillion in Q2 of 2022. The start of the summer wasn’t so bright for the world’s largest and most important cryptocurrency.
That brings us to this present moment. People looking to purchase crypto coins now have the best chance of getting the most bang for their buck. Others, who are either holding their coins or using them to play at casinos, are obviously in a worse position. However, Bitcoin has been stable for a while, with a tendency to rise again.
Pros of Using Bitcoin To Play at Online Casinos
Now that we have covered the crypt market trends in the recent period, we can discuss the pros and cons of using cryptocurrencies at casinos at this particular point in time. So, let’s skip the doom and gloom and see why you should be gambling in Bitcoin rather than fiat currencies.
Transactions Are Faster
When you’re at a casino site, and a certain game piques your interest, you naturally want to start playing right away. Casinos understand that; hence their offer to their players to reload accounts using their crypto wallets and, in some cases, to purchase crypto directly through their partner networks.
Deposits in Bitcoin are generally on par with credit cards and PayPal when it comes to transaction times. That is to say, you’ll usually see the funds in your casino account immediately after completing the deposit process. Not so with withdrawal times. Financial institutions are very slow when adding funds to customers’ accounts. Sometimes, it can take more than a week for your withdrawal to appear in your bank account, and that’s only after verifications are complete. Bitcoin transactions are one-way, and they’re equally fast, no matter if you or the casino are initiating the transaction.
Better Player Privacy
Generally speaking, a player at a 100% crypto casino has a better chance to stay completely anonymous than if they’re playing at a traditional casino. Pretty much every new casino that accepts Bitcoin as the main form of payment requires a single ID method – the player’s email address for account verification. No dates of birth, phones, physical addresses, not even zip codes.
Still No Taxes (In Certain Regions)
Cryptocurrencies are, for the most part, not taxed in many parts of the world. Owning, mining, trading, or spending Bitcoins has no impact on people’s taxes. That is, if they’re living in one of the countries that haven’t introduced taxes on digital assets. The United States, for example, doesn’t require crypto owners to report Bitcoin (or any other digital currency) on their tax forms unless they spent or sold the currency.
The Downsides of Gambling With Bitcoin
As we’ve discussed in the introductory section, the biggest downside of using Bitcoin to play at casinos is its current low USD value. This represents a potential for loss if you’re set to turn your coins into fiat currency, as you’ll be getting much less in value than just a year ago. Of course, there’s also the matter of volatility inherent to most popular cryptocurrencies. Since the values change by the hour – both in USD and when converted to other cryptos – Bitcoin might prove to be a less-than-ideal choice for gamblers.
This is especially true for players looking to completely cash out or transfer their winnings to another casino. Taxation has come right before tax season for Bitcoin. While not every country has followed suit – and probably won’t for a while – this still means players in the US have to slow down with crypto gambling as each win is counted as capital gains by Uncle Sam and is fully taxed as such.
There’s also the matter of controversies surrounding the crypto space in recent months, including the recent FTX collapse. While the exchange’s bankruptcy might not sound like it has much to do with the crypto gambling scene, it still played a big role in the crypto crash and may cause investors to stay away from crypto projects for a while.
Conclusion
What does the future bring to Bitcoin and casino players? That’s, unfortunately, still uncertain. The times are changin, as the saying goes. Bitcoin might be down, but it’s not out. Far from it, actually. History teaches us that this cryptocurrency always comes back swinging, usually stronger than ever. It’s just a matter of time before that happens again.
