Online casino banking in many parts of the world can be problematic. While deposits usually happen instantly, withdrawals can take time regardless of the payment method chosen. Bitcoin aims to make payments frictionless, so it is no wonder that online casinos have introduced Bitcoin payments for its speed and and ease of use.
The multiple benefits that Bitcoin offers has resulted in more and more Australian online casinos offering it as a payment method. We guide you through the best Bitcoin casinos, how to use bitcoin when making a deposit or withdrawal, and even how to acquire Bitcoin if you are new to the world of Cryptocurrency.
All the Bitcoin casinos on our list are safe and reliable. They use software from reputed operators and are licensed in recognized jurisdictions. Each of these casinos support Bitcoin payments. What this means is that you can deposit into your account, place wagers and withdraw winnings in Bitcoins.
An Introduction to the Bitcoin
While Bitcoins are definitely new territory for the online casino industry, they have been around for quite a while and used for making online payments. The Bitcoin is basically a virtual currency, a cryptocurrency that was first launched in 2009. It was created on 31st October, 2008, by Satoshi Nakamoto. The anonymity factor that shrouds the functioning of the Bitcoin is complete, to the extent that till this date we don't know if Satoshi Nakamoto is actually an individual or a moniker used by a group of people..
In the words of Nakamoto, Bitcoin is more than just a currency; it is a peer-to-peer (P2P) electronic cash system. The fact that it is a virtual currency means you do not get it in physical form, i.e. as tangible paper currency. That is why its use is limited solely to the virtual online domain.
The following is a brief timeline about Bitcoin from the time it was created:
18th August 2008
Registration of bitcoin.org domain name.
31st October 2008
Bitcoin: Release of ‘A Peer-to-Peer Electronic Cash System', a paper relating to Bitcoin, by Satoshi Nakamoto.
First Bitcoin open source client released and first Bitcoins issued.
Bitcoin Foundation launched.
More than 1000 merchants accept Bitcoin, according to BitPay.
Barclays becomes first major bank to accept Bitcoins. Number of merchants accepting Bitcoins shoots up to 1,500.
Number of Bitcoin ATMs worldwide reaches 771.
First half of 2017
Legal firms and legal financial companies recognize Bitcoin as legit.
1st August 2017
Bitcoin splits into 2 cryptocurrencies, the second being Bitcoin Cash.
Features of Bitcoin
There are numerous features that make Bitcoin a popular option for transaction at online casinos and elsewhere across the entire online space.
We list and discuss the top features of Bitcoin in the following sections.
No Middle Man
The fact that Bitcoin is a P2P currency means its exchange - purchase or sale - happens directly between 2 peers. There is no requirement for a middleman to facilitate a Bitcoin transaction. This is one of the areas where it is singularly different from other flat currencies.
It is Independent of Banks
Because it is digital currency, it is stored and exchanged on computers across the world via the Internet. There is no dependency on banks or any other financial institutions for their acquisition or sale.
It is Not Regulated by Financial Institutions or Government Agencies
Bitcoins are totally independent. There is no regulation of Bitcoins by financial institutions like banks, or even government agencies that regulate financial instruments like currency.
It is Anonymous
Bitcoins, because of the fact that they are not regulated, offer a degree of anonymity in their transactions that you will not find in any other currency. A player does not have to provide all the vital information that is required when he is purchasing Bitcoins, for instance.
It is Fast
Bitcoin transactions are instant. This is because there is no third party mediating or authenticating the transaction. The currency gets transferred electronically from the seller's account to yours. Physical purchases - by meeting the seller - is also possible but the transaction is still instant and electronic. This is another huge advantage that Bitcoins offer over other currencies.
It is Secure
Bitcoin transactions are highly secure thanks to the use of sophisticated encryption technology on par with the best in the world. This adds an extra layer of security over the protocols that the online casino itself has in place.
How Do You Get Your Bitcoins?
While you can use Bitcoins in the list of Bitcoin casinos we have compiled for Australian players, the first step is to get the Bitcoins. You will need to visit a Bitcoin exchange to get your Bitcoins and once you have them, you will need a wallet to store them in. You can get the wallets online, and they are available for free. When you are at the Bitcoin exchange you will need to sign up with it.
There are different ways you can buy Bitcoins:
Bitcoin exchange: You can buy from one of the Bitcoin exchanges you find online. You can make payments for the Bitcoins using your credit card, debit card or e-wallet. Cash purchases are also possible. You can opt for international exchanges or a local Australian exchange such as Independent Reserve, a Sydney based operation.
P2P marketplace: You can visit a P2P marketplace where you can engage in trade and get your Bitcoins in exchange for goods or services that you can offer.
Individual seller: You can buy from an individual who already has Bitcoins and is looking to sell them. While this would usually be cheaper than buying at an exchange there is an element of risk as you would most likely not know the seller. Buying from a seller is a good idea once you have verified his credentials.
Bitcoin mining: This is the last option because it requires specialized skillsets and in-depth knowledge of programming and hardware, so it is nor for everyone.
Using Bitcoins at an Online Casino for Australian Players
After you find an online casino accepting Australian players that support Bitcoins as currency and sign up with it, you can make deposits with it.
Visit the Banking or Cashier section of the casino.
Select Bitcoin as the currency to use.
Select your Bitcoin wallet and log in using the appropriate credentials.
Select the amount of Bitcoins you want to deposit.
Fill out any other additional information required.
Click the Submit button to complete the transaction.
Once your account is funded with Bitcoins, you can choose the game you want to play, place a wager in Bitcoins and hit the Spin or Deal button to get started.
Withdrawal follows the same process as the deposit, and at the end of it the Bitcoins you earned are transferred to your Bitcoin wallet. From there you can transfer the amount to your bank account using fiat currency; the converted amount in the fiat currency would be deposited into your bank account.
Bitcoin Casino Software Providers
The popularity of Bitcoins has resulted in a number of reputed software providers listing it as one of the currencies supported. There are existing providers who support Bitcoin as a currency along with other fiat currencies like the Australian Dollar, Euro, GBP and US Dollar. There are also providers who support only Bitcoins.
The following are some of the casino software providers who support Bitcoin:
A note on SoftSwiss: Based out of Austria and launched in 2008, SoftSwiss is considered a leading Bitcoin casino software provider. Australians can enjoy casinos like Bitstarz and Play Amo that use their software.
Advantages and Disadvantages of Using Bitcoins
The popularity of the Bitcoin is underlined by another bit of statistic - the spike in its cost in recent times. When it was first introduced in 2009, the cost was $1 for 1 Bitcoin. Today, the number stands at over $240 for 1 Bitcoin. There was an astounding high in 2014, when 1 Bitcoin cost $1000.
There are numerous advantages to using Bitcoins, and a few disadvantages too.
The following are the advantages:
Anonymity in buying and selling.
Ability to transfer funds anywhere across the world at any time.
No regulation by financial institutions or government agencies.
The following are the disadvantages that the Bitcoin comes with:
Limited acceptance by vendors due to limited knowledge and awareness about the cryptocurrency.
Lack of legitimacy in many parts of the world.
Wary attitude of government agencies towards it because of its anonymity; the fear is that criminals and terrorists could also use it.