If you’ve been on the internet in the last few years it’s not unlikely that you will have stumbled across at least a passing mention of Bitcoin. While Bitcoins reach far and wide, we’re going to focus on how you can use Bitcoin in online casinos in the UK .
When spending money at online casinos, many people are ‘scared’ that the financial information they divulge (such as credit card or bank account details) may be compromised. All online casinos use secure digital encryption so that personal information, if hacked, cannot be decrypted and used for nefarious purposes, but still many people are reluctant to share financial information across the internet.
One solution to this ‘issue’ is the use of Bitcoin as a currency. Bitcoin is an online-only currency that acts as cash when used as payment. The real advantage of Bitcoin is that it can be used to pay for goods and services over the internet without the intervention of any financial organisations whatsoever. This means that if you play at an online casino that accepts Bitcoin, you will not need to share important financial information with your online services provider.
What is Bitcoin?
Bitcoin is a virtual peer-to-peer currency. Peer-to-peer means that Bitcoins can be sent directly across the internet, in the same way that people used to use Napster to send mp3 files to each other before ISPs cracked down upon this file-sharing method. The difference between Bitcoin and Napster though is that Bitcoin is perfectly legal.
The idea of Bitcoin first surfaced in 2008, and the currency was released in 2009. Initially its invention was credited to a programmer named Satoshi Nakamota, but now it seems likely that ‘Satoshi Nakamota’ was a pseudonym for either a single programmer or a group of programmers.
Bitcoins are stored on a person’s computer via a computer program called a ‘Bitcoin wallet’. This is a sophisticated piece of encrypted programming that cannot be hacked, therefore Bitcoins cannot be added to or removed from a Bitcoin wallet illegally.
You can use your Bitcoin wallet to pay for goods or services at merchants that accept them, or receive Bitcoins from other Bitcoins users or Bitcoin-friendly companies.
Bitcoin casinos in the UK
When Bitcoins first arrived on the scene there were immediate claims that this internet-based cryptocurrency would see the end of normal money markets within a decade or so. This has not happened, and a decade or so on has not even come close to happening. There are over one hundred thousand merchants that accept Bitcoin worldwide, but that’s hardly a significant number.
In the UK Bitcoin has not really taken off at all. There are some online casinos that accept Bitcoin in the UK, but they are very few and far between. Here we give a quick run-down of two that do.
- NetBet
NetBet is probably the biggest and most well-known online casino operator with a UK Gambling Commission licence that accepts Bitcoin as a payment currency. Note that NetBet does not accept Bitcoin directly, but does via the leading eWallet provider Neteller. This means you will have to have a Neteller account when using Bitcoin at NetBet, but you do not have to give Neteller any secure financial information in order to open an account.
NetBet really is your one-stop shop for all online wagering activities. As well as an incredible online casino with providers as well-known as NetEnt and Microgaming, it also provides sports betting opportunities, in-play betting, a live casino and a dedicated online poker room.
- TonyBet
TonyBet is one of the most well thought-of online casinos that accepts Bitcoin. Just like NetBet, TonyBet does not accept Bitcoin directly, but via a payment services provider named SpectroCoin. The best thing about SpectroCoin is that this company is your all-in-one Bitcoin management tool. You can manage your Bitcoin wallet via SpectroCoin, purchase Bitcoins and transfer Bitcoins to other currencies.
Also like Net Bet, TonyBet provides more than online slots and online table games. The online casino though is superb, and TonyBet also supplies an online sports book, in-play sports betting arena, live casino and dedicated poker room. TonyBet was established in 2009 and operates in the UK, Danish, Estonian and Lithuanian markets. It is now operated by the leading global gambling company Betsson.
The Pros and Cons of Bitcoin
Pros
- The most positive aspect of Bitcoin transactions is that your identify and your finances are protected. Identify theft and hacking are becoming increasing issues on the internet, with hackers becoming ever more sophisticated in the way they break into secure data storage areas and steal information. Despite major software safeguards, companies as well-known as Sony, Adobe, Visa, MasterCard, Subway and Yahoo! have all suffered data compromise via hacking.
- Paying by Bitcoin is the internet equivalent of paying by cash at your local corner shop. You do not have to give any other financial information when paying, and the ‘Bitcoin address’ used to enable the transaction is destroyed once the transaction is complete. Your Bitcoins are sent directly to the merchant you are paying, and not via any third party.
- Bitcoin is also an international currency. You can use Bitcoin to pay for services from any corner of the world, fee-free. Banks and other financial organisations will often add ‘non-domestic transaction’ fees and ‘currency exchange’ fees when you paying an overseas merchant. With Bitcoins there are no extra fees to pay.
Cons
- Although Bitcoins only exist as data, they do have to exist physically somewhere, usually on your computer’s hard drive. This means that if your hard drive fails, or your computer is stolen, then your Bitcoins are lost too. There is the famous example of a Bitcoin customer, James Howells, who in 2013 threw out a laptop containing 7,500 Bitcoins in a Bitcoin wallet he created for virtually nothing four years previously. By early 2017, those 7,500 Bitcoins were worth £13,000,000. You can prevent this from happening to you by storing your Bitcoins in a cloud-based wallet, as opposed to one stored on your hard drive.
- Bitcoin is one of the most volatile currencies available to purchase. Although the value of Bitcoin has steadily risen since 2013, it is prone to the occasional monumental fall. In mid-2013, for example, one Bitcoin reached £680 in value, but by early-2014 it had fallen to £250. Bitcoins did not reach £680 in value again until late 2016.
- Because you are paying ‘virtual cash’ when using Bitcoin there is always the chance that you will send your Bitcoins to the wrong address, or to a ‘dodgy’ merchant. As you have no third party buffer acting between you and the person you are sending money to, you will not be protected, and you will have no way of regaining your money should things go awry.
How to buy Bitcoins
If you’re completely new to the world of Bitcoin, then you’re probably wondering how you can get your virtual hands on some. Here is CasinoUK’s step-by-step guide to becoming a Bitcoin expert.
[1] The first thing you are going to need if you intend to use Bitcoins is a Bitcoin wallet. There are two types of wallet – software-based and cloud-based. A software-based wallet is a program that exists on your PC hard drive. A cloud-based wallet exists in the cloud and is independent of your connected devices. Both have their advantages and disadvantages – for example a software-based wallet is more secure, but a cloud-based wallet will not disappear if your PC suffers a fatal hard drive error.
There are plenty of software service providers you can obtain a Bitcoin Wallet from. These include companies such as Blockchain, Exodus, Coinbase, TREZOR or Ledger Nano S.
[2] Once you have your Bitcoin wallet set up you will actually need to get some Bitcoins. You can trade for Bitcoins, but it’s far easier to simply buy them. You do not have to purchase full Bitcoins – just like a pound is split into pennies, a Bitcoin (BTC) is split into millibits. One thousand millibits make one Bitcoin, and you can buy as many or as few millibits as you want.
Many Bitcoin wallet provides will also allow you to buy Bitcoins from them, but in case your chosen provider does not, there are plenty of places where Bitcoins can be purchased – Bittylicious or BitBargain, for example. To buy Bitcoins you will need to supply your email address and banking details. The Bitcoin seller will then send your purchased Bitcoins or millibits directly to your Bitcoin wallet.
[3] To use your Bitcoins at an online casino that accepts Bitcoins, all you need to do (once you have registered with them) is to go to the deposits page and select Bitcoin as your chosen deposit method. When you do this, you will be given the address of the casino’s Bitcoin wallet. You use this via your software-based or cloud-based Bitcoin wallet to send your chosen amount directly to the casino. Once the transaction has been approved your Bitcoin balance will appear in your casino account. Note that Bitcoin transfers may take a few minutes to complete.
The future of Bitcoin … does it have one?
It does not seem two minutes ago that the world was raging about Bitcoin, saying that it was going to be the internet-based currency of the future and that financial institutions would suffer massively as a result. This has not (as yet) happened, mainly because those ‘suffering’ financial institutions have not been keen to accept Bitcoin as a legitimate currency.
Despite its lack of popularity Bitcoin remains the safest way to load money into your online casino account without the need to divulge sensitive financial information.