Bitcoin

Bitcoin is a decentralised digital currency held in a personal wallet rather than a bank. Crypto-friendly betting sites accept it for deposits and withdrawals, which settle on the blockchain rather than through banks.

Confirmation times and network fees vary with congestion, and the value of Bitcoin can move significantly. Crypto gambling is unregulated or restricted in many countries, so availability depends on the operator and your jurisdiction.

Like a wolf cub abandoned in the forest to fend for itself, Bitcoin was extremely lucky to survive its first years of life. Now that the digital currency is going strong and coming closer to earning the “mainstream” label, it’s about high time we have a little talk about online betting with Bitcoin. Bitcoin is impartial to the whims of politicians and (most importantly) it actually holds some value. It is not anonymous, though: bitcoin.org's own FAQ says the use of Bitcoin leaves extensive public records.

People have been talking about the possibilities of pairing online gambling with Bitcoin for a long time, and it is now a feasible option for the average player. You do not need to be a computer geek to get your own bitcoins, use them to bet online and then cashback out in whatever currency you wish.

Bitcoin Betting Sites

To be fair, everything could change overnight. Nobody guarantees the value of Bitcoin and there’s nobody to hold accountable if everything goes belly up. But then again, that’s kind of the point. Fiat currencies are by no means perfect.. but I digress. Where were we? Oh yes, Bitcoin betting sites. A number of betting sites accept Bitcoin deposits directly, and where one does not, exchanges and wallets will convert to a currency it does take.

There are a few Bitcoin-first casinos and poker sites out there, but none of us here at OnlineBettingSites have had a chance to look too deep into those. We would rather stick with big-name betting sites that have verifiable reputations.

Update: In April 2015, Optimal Payments (then parent company of Neteller) added Bitcoin to Neteller's list of accepted funding methods. Bitcoin is no longer listed among Neteller's deposit options, although Neteller now offers a separate regulated service for buying and selling crypto.

In a Reddit thread discussing the news, a user posted screenshots of that 2015 announcement; they are kept here only as a record of a funding option Neteller no longer offers.

What Is Bitcoin?

Bitcoin is an electronic currency that exists only online; it takes no physical form in the real world. The scarcity is preserved (i.e. people can’t make copies of Bitcoins) through the use of a sort of public ledger. Bitcoins can be exchanged for real cash, and the value fluctuates based on demand and perceived risk.

Unlike most traditional currencies, Bitcoins are not controlled by a central bank or single policymaker. The supply of Bitcoins is limited, but BTCs can be divided up to 8 decimal places as the value of the currency increases. This allows a nearly unlimited amount of Bitcoins to be purchased as the currency becomes more valuable and popular. Under the current protocol, 21 million Bitcoins will be released in total. After that, no Bitcoins will ever be issued again (supposedly).

Is Bitcoin Legal?

Bitcoin has not been made illegal by legislation in most jurisdictions, according to bitcoin.org, although some jurisdictions restrict or ban its use and others limit the licensing of entities such as exchanges. Many jurisdictions have established regulatory frameworks setting out how the technology fits into the formal, regulated financial system, and those rules continue to develop.

Many Bitcoin wallets and exchanges operate around the world, but they are increasingly licensed and supervised — in the EU, for example, crypto services now need an authorisation under the Markets in Crypto-Assets Regulation. In one case the US government issued an arrest warrant for the operator of one Bitcoin betting site, but so far nobody has gotten in trouble for simply using the currency to bet online.

Why Are Bitcoins Controversial?

There are several reasons for this. Firstly, they are a newly minted currency that is growing in popularity and has no central bank behind them. They are not anonymous, however: bitcoin.org states that the use of Bitcoin leaves extensive public records. This fact alone may scare people as most people have never used a currency that is not backed by a central bank or a government.

Secondly, Bitcoin is popular among underground marketplaces that sell a variety of items, including drugs and other illegal items. Some proponents of Bitcoin would say that the currency is mostly used by drug dealers and those looking to launder money – this could not be further from the truth.

Lastly, Bitcoins have experience wild fluctuations in value over the years. Many times they have dropped 20-40% of their value overnight, and because they are still scarce, large movements of BTCs can have a large effect on the market price. bitcoin.org suggests this volatility will in theory decrease as Bitcoin markets and the technology mature, but Bitcoin remains a volatile asset.

The US Dollar and many other fiat currencies slowly, but predictably lose value year after year. Bitcoin behaves differently rather than simply better: bitcoin.org notes that there is no guaranteed purchasing power and that the exchange rate floats freely, so owners can unpredictably make or lose money.

What Are Advantages to Bitcoin?

Bitcoins can be transferred anywhere in the world and are essentially borderless. This is pseudonymous rather than anonymous — bitcoin.org states that the use of Bitcoin leaves extensive public records — and it carries a network fee that the sender chooses, with higher fees encouraging faster confirmation. These transactions are also irreversible and cannot be seized by any government entity. Low costs of deposits and payouts are one reason it’s so attractive to online gamblers. The ability to send or receive thousands of dollars worth of Bitcoins anywhere in the world for a fee that does not scale with the amount is especially attractive.

It’s always on. As long as the internet is up and running, Bitcoins can be bought, sold and transferred. There are no bank holidays or days off. If you are ready to make a trade the Bitcoin network is always available.

Sending and Receiving BTC

Users of Bitcoin can send and receive BTCs by using Bitcoin addresses. New blocks are added to the blockchain approximately every 10 minutes on average, but block discovery is probabilistic, so an individual confirmation may arrive much sooner or much later. Some transactions have a lower priority than others and can take up to several days to process. However, the vast majority of transactions are processed quickly. As we mentioned above, once a transaction is processed to a Bitcoin address it is irreversible.

Bitcoin addresses are unique and contain a series of letters and numbers that range between 27-34 characters. Bitcoin addresses are the lifeblood of Bitcoins. Similar to email addresses, users can send Bitcoins to a user by sending them to one of their addresses. Addresses are case-sensitive and must be exact for payment to be received.

Most Bitcoin wallets and exchanges have a button that will randomly generate a Bitcoin address instantly. These can both be created online via Bitcoin-accepting wallets, businesses, and exchanges along with offline software.

For ultimate security, Bitcoin users should use a unique address for every transaction on the network. An additional security measure is a private key, which is a set of numbers that is required for access to funds to that address.

Since Bitcoin addresses change frequently when operating wallets and exchanges it is crucial to verify the address and any keys before sending or receiving a Bitcoin transaction.

Acquiring Bitcoins

There are a number of options for players looking to buy and sell Bitcoins. The most common way to acquire coins is through a Bitcoin Exchange.

Bitcoin exchanges allow players to buy and sell Bitcoins through a variety of methods. Most exchanges use bank transfer, ACH, or bank wires as a payment method. Exchanges have a set number of coins they can sell per day and often times those limits will be exceeded. Users may have to wait until the next day to purchase coins.

Exchanges are the cheapest way to acquire Bitcoins online through many different currencies but are not the fastest. After a transfer from a player’s bank account, purchased coins will normally be available the next business day in the player’s wallet. Exchanges are the cheapest way to acquire Bitcoins. Fees can be virtually nothing if a user is a high-volume buyer or seller and are almost never higher than 1% of the total cost of Bitcoins.

There are also many services that will send Bitcoins to an address or designated Bitcoin wallet in exchange for cash. These services are the fastest way to receive Bitcoins, but carry higher fees than exchanges. Users can deposit cash through Western Union and Money Gram services and through a variety of other methods, including localized payment processing options. Finally, Bitcoins can be acquired in person by using a Bitcoin directory and via forums or other marketplaces. These are less secure methods but may come at a cheaper cost than some services.

If players have the time to wait a business day or two to receive their coins, Bitcoin exchanges are the best option. They are secure places to store coins and the fees are much smaller than other methods.

Bitcoin Online Gambling

As online gambling and Bitcoins both continue to grow in popularity, many gambling-related sites based on Bitcoin have begun to appear online. Players wager millions each year in Bitcoins on a variety of sites.

Bitcoin transfers do not go through a card network or a bank, so the fees are different in kind from card fees rather than simply lower — network fees vary with how busy the network is, and an exchange will take its own cut on the way in or out. Also, gambling via Bitcoin is not the same as using a fiat currency such as the US Dollar.

The legality of operating a US-facing gambling site that accepts US dollars can be bad news for operators, but what if they are only accepting Bitcoin? Many operators are arguing that accepting Bitcoins for deposits from anywhere in the world is legal. This may lead to a legal showdown at some point, but for now, gamblers from all over the world are starting to gamble online via Bitcoin.

Bitcoin Gambling Sites

As mentioned above, transferring money via Bitcoin is either extremely cheap or free. Payment processing is a considerable expense for all gaming sites such as online sportsbooks, casinos, and poker rooms. Since Bitcoin gambling sites payment processing is vastly cheaper than most other online gambling sites, the odds offered are normally much better than regular operators.

BTC betting sites have also become a thing. A number of online sportsbooks accept BTC payments, and the crypto betting sector has grown substantially. Bitcoin sportsbooks may not have the massive online betting markets larger sportsbooks have, but they have a more than adequate number of available wagers for most worldwide sports. Betting markets are available for all major American sports and have a large selection of European domestic soccer leagues, along with international matches.

There is even a Bitcoin sports betting exchange, which is a peer-to-peer betting market that players can match or offer different bets. The odds on the bets offered on the exchange are among the best prices online. Liquidity is a small problem, but as the site gains a larger base of sports bettors this will not be a problem.

Poker is the most intriguing of the Bitcoin online gambling options. There are several Bitcoin poker sites offering real money games, such as Texas Hold’em and Omaha.

Future of Cypto Currencies and Bitcoin

It’s tough to predict Bitcoin’s future as a worldwide digital currency, but for now, it looks exceptionally bright. Its uniqueness and ability to move money at virtually no cost around the world gives the digital currency a massive leg up on all other forms of online betting deposits and withdrawals. This translates not only into cheaper costs for sites accepting Bitcoin but quick payments for players.

The price will need to be stabilized before Bitcoin catches on as a go-to option for online financial transactions – but if it does – there is no telling how large the BTC betting market could become.