When players get used to one method of betting, they tend to overlook any alternatives. But when the benefits of cryptocurrencies become apparent, then fiat money takes a back seat. Bitcoin slots have become much more popular because of the benefits they offer players. Users have started to notice how unprofitable fiat currencies have become. Certainly, they have many more disadvantages than Bitcoin and other cryptocurrencies.
By using cryptocurrencies, you become less dependent on centralized systems and spend a lot less money to cover fees for intermediaries. However, that’s not all the weighty arguments in favor of cryptocurrencies. Ethereum casinos in turn do not even charge a fee for sending you your winnings, whereas traditional casinos do charge a fee. Also, all online payments are anonymous, so you don’t have to worry about the safety and security of all your funds.
Disadvantages of Fiat Currency
In more scientific terms, fiat currencies are fiduciary funds that are based solely on trust. They are state currencies most often not backed by assets or physical commodities. With all that, they have no intrinsic value. In simple terms, they are just paper where the state is the center of trust.
Fiat currencies have several disadvantages that significantly affect future interactions with them. Here are the main ones:
- Lack of intrinsic value. The loss of trust, as the fundamental basis of fiat money, can lead to the loss of value of all investments and savings, up to and including the complete standstill of the economy as a whole
- Political risk. The value of a particular fiat currency is determined by the effectiveness of governance. Stability in the past does not guarantee its continuation in the future because of political risks inside and outside the country
- Debt spiral. The state’s access to a virtually endless issue of currency entails the risk of creating a huge amount of unsecured debt. An example is the US. The country has one of the most developed economies in the world and at the same time the largest debt, which exceeded $30 trillion or 133% of the country’s GDP in Q1 2022
- Financial bubbles. A prime example of the inefficiency of the fiat money economy is the 2006 mortgage bubble in the US, which led to the 2007-2008 financial crisis. Banks created a flow of capital by creating artificial demand for housing. They made loans and resold these liabilities to other banks in the form of derivatives. As soon as borrowers stopped paying interest and property prices stopped rising, the whole market collapsed like a domino effect.
Benefits of Cryptocurrencies for Playing at the Casino
Several compelling benefits put cryptocurrencies at the forefront of the gambling world. Here’s what they give players:
- There are no restrictions of any kind. Everyone can access Bitcoin and other currencies, regardless of gender or age. There are no country or time zone restrictions
- Decentralized system. Cryptocurrencies are designed on the principles of decentralization – no one has to have a prevailing vote, and all decisions to make changes to the system are made by public consensus
- There are no intermediaries. You don’t need an intermediary company to send cryptocurrency to a user in the next room or on the other side of the world – just know the recipient’s address and pay a small transaction fee
- The meaning of issuance. The mechanisms for issuing cryptocurrencies are laid down before the network or token is launched. Each participant knows in advance how many and under what conditions intra-network units of account (tokens, coins) will be created or destroyed
- Trust in the casino. Thanks to Provably Fair technology, players can personally verify the outcome of each round on the gaming platform. This eliminates the risk of fraud
- Licensing. Crypto casinos such as 7BitCasino or Mirax Casino are licensed in the same way as regular online casinos. The only exceptions are the deposit and withdrawal methods.
As you may have noticed, cryptocurrencies are becoming a major replacement for traditional fiat currencies. You can add speed to the advantages of cryptocurrencies. The fact is that it can take up to 7 days to cash out fiat currencies, while cryptocurrencies arrive in your wallet within 1 hour.