How Safe Is The Bitcoin Gambling In The Online Casino World?

by Isabella Mason

Posted on February 13th, 2020

How Safe Is The Bitcoin Gambling In The Online Casino World?

Cryptocurrency gradually and systematically conquer new markets, starting from traditional finance to the entertainment industries. This disruptive technology not only becomes an integral part of the business, but also gives the developers new opportunities and chances to change the basics of traditional business models. Therefore, the entertainment industry decided not to stay aside and integrate such coming cryptocurrency technologies that will offer new proper services. Nowadays, you cannot surprise anyone with bitcoin gambling because, in just a few years, it became so widespread in the world of online casinos, and today, there are dozens of cryptocurrency casinos. Have you ever wondered about the considerable advantages that bitcoin gambling has and how safe it is?

Cryptographic methods used by the cryptocurrency

In general, there are two main techniques used by cryptocurrency. The first one is hash functions, and the second one is cryptographic digital signatures. For instance, if you need to make some transfers using your bank, then you have to talk to the bank or get some confirmation for your transaction. However, in the case of cryptocurrency, there is no control from the Central Bank. Yet, you need to confirm your transactions with a cryptographic or any alternative signature. 

A great number of computers connected to the network hold all the data regarding cryptocurrency. Several years ago, there was a problem with synchronizing the data in open systems. Later, Satoshi Nakamoto proposed a solution in his work on bitcoin. As the main tool, he offered hash functions, used to build a blockchain where we can see the records of all transactions. Here comes the idea of synchronizing information, as mentioned before. To close one transaction block, it is necessary to perform complex calculations to guess the hash function. Respectively, the more blocks exist in the system, there is more necessary for the more complex calculations. Overall, this leads us to consider this tool as a profitable method against attackers.

How legal is bitcoin casino?

bitcoin gambling

Talking about the legality of bitcoin, we can say that the use of cryptocurrency is allowed in all countries with existing and developing online casinos. For now, bitcoin is legal in 111 countries in the world. In any other case, if the laws of a particular country do not have prohibitions on online casinos, then the owners can legally propose their services for bitcoin casinos as well. What about licenses? As you know, for payment processes using bank accounts there is a requirement for a gambling license in a usual online casino. However, in bitcoin casinos, there is no need for the bank approval for the monetary transactions. But still, a bitcoin casino needs to have a license, which is necessary for the cooperation with popular online gambling software providers.

Basic advantages of bitcoin

Except for the safety, there are some main benefits, highlighted by the majority of players. One of the first and favorite properties of users is the high volatility of bitcoin. They underline it as an added bonus and pleasant gift when the price of bitcoin rises. For instance, during the bitcoin gambling games online, you have won some bitcoin and decided to keep them in your online casino account. Later, after one year, you will come and see that your existing bitcoins now cost ten times more expensive. Who will not appreciate this option? 

What if you travel and find a legal online casino slot that has some restrictions exactly in the country where you are now but allowed in your own country? Then, you can engage in bitcoin gambling using different IP-address and your bitcoins, which will not show your confidential information. So, playing in a bitcoin casino, you become a person who supports high technology. So, you help to distribute and improve new technologies in the world of online casinos. Accordingly, another foremost ability of bitcoin gambling is to remain anonymous. Here, we can mention that no one, even the gambling software providers will not have any idea about your favorite online casino game since there is no requirement for providing personal information. Respectively, bitcoin gambling is a proper place for those who worry about disclosure of their confidential information.

What are the main danger points of bitcoin gambling?

bitcoin gambling

As in most of the cases, the first threats are the hackers; it has a relation with the fact that there are a lot of computers used for the calculation processes. Experts of the information technology claim that there is a possibility of problems with hash functions and signatures. They argue that they can have an impact not only on these systems, but also other systems that use these techniques. Have you faced any example of such an attack? Let us give you some details before moving to an example. Keep in mind that blockchain attacks usually occur on the outer edges of the corresponding system. We can explain this notion with the fact that, in most cases, scammers do not have that much knowledge or power to deal with the entire bitcoin gambling system.

If you have ever worked with bitcoins, you should know that each time when you transfer money, you need to use a password necessary for e-sign. If someone finds this password, then that person can manage the wallet on behalf of the owner. For instance, there was a case in 2011 when everyone who was using Mt. Gox lost access to their data. In total, 740,000 bitcoins were lost with an equivalent of €460 million at the time. Later, even though 200,000 bitcoins were recovered, the remaining 650,000 have not been found yet. Therefore, be sure to keep your cryptographic key safe.

Precautionary measures

To continue with the previous part, we would like to give some basic guidelines. As you may know, there are some possibilities of a computer crash or even your human errors. Therefore, to guarantee your protection, we advise you to make a backup of your bitcoin wallet and keep it in a safe place. This can help you to recover your wallet in case someone steals your device or encrypts the wallet. Also, remember to encrypt all your backups which are accessible from the network. The reason behind this is that even a simple computer connected to the network is vulnerable to any attacks or viruses. So, the same applies to the backup, which in turn is vulnerable to scammers. 

Today, among all the cryptocurrency bitcoin is considered the safest one because the developers constantly improve and check it. So, it is almost impossible to have an attack on bitcoin. Simply, because there are a lot of resources necessary to realize it. Accordingly, you may remain calm if you play bitcoin gambling using the safest cryptocurrency in today’s world. Again, do not forget to regularly make backups of your wallet. Also, make sure that all the last changes in bitcoin addresses are included in your backup. Undoubtedly, while engaging in bitcoin gambling, encrypt the wallet itself with a strong password, which will be hard to crack for someone who can try to withdraw your funds. Follow this simple guideline, and be sure that you provide and monitor the security of your money yourself.