The conventional way to gamble is by entering a casino and exchanging money for chips. Many have discussed the psychological impact of trading money for plastic chips, which can lead to gamblers spending more as they disconnect the value of the money from the chips.
With bitcoin gambling, traditional currency is not used, and instead, a more versatile payment method is employed. Bitcoins can be sent directly from a wallet to a gambling site or vendor, offering greater flexibility and value.
Additionally, bitcoin transactions provide transparency due to the public ledger nature of the currency. Gambling sites like SatoshiDice display the latest plays and addresses involved, establishing trust through transparency.
From a technical perspective, provable trust ensures that a random number generator combines a key with a hash to prevent manipulation of odds. Some sites, such as BitSaloon, make their random number generator implementation public, ensuring fairness in gaming.
Bitcoin also offers benefits to casinos by preventing money laundering. The public ledger nature of bitcoin makes it difficult for illegal gambling and money laundering to occur, as the source of the money can be traced, serving as a deterrent.
While the concept of Bitcoin and cryptocurrencies is still relatively new, billions are already being wagered using the currency, indicating its growing legitimacy as a means of payment. Online gambling plays a significant role in mainstreaming the use of cryptocurrency, creating a partnership between the decentralized nature of the internet and cryptocurrency.
There are numerous advantages to using crypto for online gambling, including lower to no fees, faster transaction times, and new bonuses and promotions for BTC users. These benefits make it an attractive option for individuals looking to gamble online.