Online gaming entrepreneurs and investors descended on London recently to attend the first ever Bitcoin4iGaming conference. The one-day conference had Bitcoin Foundation Executive Director Jon Matonis as the opening keynote speaker, and his speech covered a wide array of topics, including the advantages of gambling online with Bitcoin (as he sees it).
Online gambling has been at the forefront of technology since its inception about two decades ago, and the fact that some in the industry are trying to incorporate the speculative and largely untested Bitcoin as a financial instrument should come as no surprise to those who are familiar with the industry.
How Bitcoin gaming would work
Bitcoin is the digital currency that has garnered the most press attention over the past few years, due in no small part to its rapidly increasing valuation and subsequent volatility. The most notorious fluctuation occurred at the end of 2013, when the price peaked at a high of $1,242 before losing almost two-thirds of its value in only four weeks by crashing to just $455 per Bitcoin.
Typically, gamblers prefer to gamble on games they know, such as poker, blackjack and craps. The idea of adding another element of risk – namely, the price fluctuation of Bitcoin and other digital currencies – might be disconcerting for traditional gamblers.
Should UK gamblers consider Bitcoin gaming?
Unlike many other parts of the world (particularly the United States), gamblers in the UK benefit from a regulated gambling industry with plenty of reputable options to choose from. While Bitcoin and digital currencies certainly offer promise in a future filled with exciting technological news and innovations, gamblers in the UK largely can avoid this speculative part of the industry for the time being.
That being said, Bitcoin-funded gaming does offer some unique benefits, such as dramatically reduced fraud risk and zero chargeback risk, which in turn translates to lower operating costs for online casinos and potentially greater value for gamblers. We recommend keeping an eye on Bitcoin gaming, as it is likely to be a growing trend over the next few years.
