December 9th, 2019 | Updated on June 17th, 2020
With the success of cryptocurrencies, many casinos today offer Bitcoin and other forms of digital coins as a mode of payment or deposit.
These digital currencies are then converted into real cash denominations, and the players will use that cash to wager on bets.
Players can also take advantage of crypto casino no deposit bonus promotions for BTC online gambling where they might double the value of their deposit.
If they win big, they can withdraw their funds in the same crypto-currency that they deposited to Bitcoin casinos, and then convert it to cash for their own spending leisure.
The begging question is: Is cryptocurrency a subject to any regulations?
What Is A Cryptocurrency?
Cryptocurrency is a form of digital money. Instead of minting physical coins, its’ creator was turned to the digital currency that has a value, the cost of which is determined by the demand of the public.
It is a digital asset that you can use to make transactions, and it uses highly-secure cryptography, which means it is a secure asset that cannot be stolen from you.
A Cryptocurrency Is:
- Decentralized, which means nobody really controls it;
- Nobody can dictate when to mint more coins digitally;
- Nobody has a legal authority to control it.
If nobody controls it, then who is in charge of the transactions? The crypto-currency is based on ledger software. This ledger is run by a computer program that determines the validity of transactions.
No single person controls it or owns it, and anybody can participate in keeping this ledger active. A ledger works because of what is called a blockchain. This blockchain is a connection of transactions and networks.
Bitcoin was the first digital coin that is considered to be truly decentralized, and after its success in 2009, there are hundreds of alternative cryptocurrencies that popped up.
A Brief History Of Cryptocurrency
Digital coins or crypto-currencies have been around since 2009. The thing is that the development started as far back as 1983.
It was a cryptographer named David Chaum who first thought about it, and his idea revolved around electronic money called e-cash. He realized this vision in 1995, and it was called Digicash.
The way this system works is that it needs encryption keys so a person can withdraw money from banking institutions.
The same encryption key is needed for a person to receive and send this digital cash. This first form of digital cash was anonymous. No one cannot be traced by any person, government, or bank.
Several other forms of early crypto-currencies were created, but it was Bitcoin that really paved the way for a decentralized digital coin system.
Nobody really knows who created Bitcoin, but it was Bitcoin that first successfully implemented the blockchain technology that made cryptocurrency really anonymous and untraceable.
Fun fact: the first-ever ‘real’ purchase made with Bitcoin was a pizza buying.
Digital Currencies Today
Today, there are hundreds of crypto-currencies being bought and sold every day in various markets. Cryptimi staff listed the safest cryptocurrency exchanges where to buy cryptocurrency or even trade it.
The legality of it varies from one country to another, and there really is no protection for any user if the digital coin was sent erroneously to someone else.
To be able to purchase cryptocurrency, you need real money. You have to buy a coin from a crypto-exchange. You also have to create a wallet to be able to keep your digital coins.
The price of each coin varies, yet Bitcoin reigns supreme. One bitcoin can cost you $7,000 or more. Once you have a wallet, that wallet will have a long string of identification numbers. You need that ID number to be able to send and receive money.
But be careful! If you gave the wrong ID number to someone, and bitcoin was sent to that wrong ID, there is no way you can get that money back.
If you forget your password, there is also no way you can withdraw your money if you cannot reset your password.
Nobody has direct control over cryptocurrency, and it shall never be regulated because the idea behind it is anonymity.
Nobody can trace any transaction to you. This is why many people use this currency to conduct online activities, including gambling.
With BTC online gambling, or bitcoin gambling, you can buy bitcoins from the exchange using your credit card, but no one else can trace what you do with that bitcoin. You can deposit it to Bitcoin casinos and place wagers without anyone knowing.
You can win or lose, and then transfer your funds back to your cryptocurrency wallet, and then convert that into cash.
No one will know where the excess money came from, as prices fluctuate all the time. Also, the government cannot snoop on your cryptocurrency affairs, as it is not part of what they control.
What Is Happening In The Regulation Now?
While there is no regulation going on right now, there are many lawmakers and politicians who support the idea of controlling and centralizing crypto-currencies.
Some politicians reportedly received money from donors in the form of crypto-currencies.
Many political opponents are unhappy with this, saying that cryptocurrency, being anonymous as it is, should never be used by government officials because the source of these funds cannot be verified.
For all we know, the cryptocurrencies that were turned to cash may have come from illegal activities like drug trafficking.
Also, cryptocurrency is used by business people who want to get rich quick. They want to take advantage of speculators in the market, so they create new alternative digital currencies that they can sell.
As they sell more units of these currencies and the price plummets, the final victims are those small people who invested in the coin and never got the value of their money.
It is this anonymity, darkness, and the strong likelihood of crooks using a cryptocurrency that is pushing legislators to create laws that will make digital currency a regulated one.
The thing is, it will seriously impact the behavior of people who are heavily invested in the digital currency trade.
The primary reason they bought this asset is the anonymity, and if there comes a time when it is regulated, everyone is going to sell his asset even at a loss.
The Impact Of Regulation On Gamblers
This regulation may not mean anything to the casual gamer, especially those who belong in countries where online gambling is allowed.
However, this will be a blow to the gaming communities who are in a country where gambling is not permitted.
In these countries, gamers buy cryptocurrencies with their credit cards because owning this asset is not illegal.
They use the cryptocurrency to make a deposit and then gamble. They cannot use their credit cards to make a direct deposit to the online casino because the issuing bank will block it.
Surely, the regulation of digital currencies will have an impact on these players. If digital currency is centralized, the banks will have a right to deny purchases of digital assets.
One may not always be able to withdraw his cryptocurrency out of the casino if the electronic wallets that facilitate these transactions are controlled by the government.
Cryptocurrency is one brilliant invention of mankind, thanks to technology. Like all other technology, it is really up to people to use it for the good or the bad.
The thing is, cryptocurrency is best left unregulated like it is today, or it will lose its value since it will no longer be any different than any currency or legal tender once it is regulated.