Head of Bitcoin Embassy Georgia tells about cryptocurrencies in gambling
Bitcoin erases geographical boundaries, becoming more and more popular in online gambling. However, the absence of legislative digital currency definitions doesn’t influence user wallets security. We have discussed these aspects with Alex Sudadze, founder of Bitcoin Embassy Georgia and speaker of Georgia Gaming Congress.
Interviewer: Georgia Gaming Congress (GGC)
Speaker: Alex Sudadze (A.S.)
GGC: Alex, what online gambling tasks does bitcoin solve? Who benefits from it?
A.S.: Initially, I would like to mention the rapid growth of online wallets popularity. It is a fast and reliable money transferring tool even without geographical limitations. This service is used by both private individuals and small and medium organizations, which is quite convenient in terms of confidence and fee per transaction. It is not the first year that this type of replenishing accounts is applied in online casinos and betting pools.
And now imagine how interesting it is: you are offered to replenish your casino balance using international currency that is hundreds of times more expensive that fiat one (today 1 Bitcoin = around $900), doesn’t depend on inflation, and the main thing – it cannot be falsified. As the result, online casino receives money from its customers in a fast, reliable way without conversion (generally online, players from across the globe). And moreover, you are sure that the transferring process is conducted via the blockchain system (individual for each currency), where a remittee can transparently check their transactions.
Who benefits from bitcoin? Surely, both parties have advantageous – a consumer and inline casino, i.e. both a remitter and remittee.
The scheme is the following: customer (deposits) à casino (quickly receives money on customer’s balance) àcustomer (withdraws won money from casino balance).
Advantages are evident: bitcoin transactions are fast, reliable, anonymous and don’t’ require currency exchange.
GGC: Legislations of many countries don’t determine and regulate bitcoin. Does it mean that in case of online casino fraud, gamblers can lose their bitcoins and no one will protect their rights?
A.S.: Unfortunately, many countries still don’t have any law definitions regarding this aspect, and some others are just developing bills. However, this fact does not influence wallet security. Such a gap can have a negative impact on taxation, and Departments of Revenue Services in the majority of countries have been already working on this issue.
As to the damage for players: even if a casino finds out their Bitcoin account number, it won’t be able to control the account without a complex password and special authentication (global blockchain protection). And if swindlers hack the database of casino data center (which can really happen even without cryptocurrencies), they will be able to stole only the sum controlled by the central casino administration system. If the administrator distributes all cryptocurrency sums across their Bitcoin addresses wisely, swindlers will have a bare chance to operate only in-game casino currency, the so-called chips, which are valuable within the gambling venue system.
GGC: How is the online casino audience expanded, if the venue implements bitcoin?
A.S.: As I said, the application of cryptocurrencies (generally: Bitcoin, Ethereum, Dash, Litecoin, Zcash) erases geographical boundaries, providing the company with unlimited opportunities. One should properly establish goals for a marketing department and include imagination at the brand new level. Attraction of new international customers and informing of regular ones about new types of mutual payments are perfect factors for the large growth of volumes.
GGC: Please tell whom online gambling accepting BTC is designed for?
A.S.: Initially, it is designed for technically advanced gamblers. However, the Bitcoin exchange system has become so user-friendly that more and more people are getting familiar with cryptocurrency wallets. I can assure you that it is as easy as creating Google accounts and writing emails. Recent years’ trend shows the growth of online casinos and international betting pools accepting cryptocurrencies, especially Bitcoin. The main problem over recent years has been world’s high volatility of the bitcoin price; however, a short-term keeping of this currency does not influence winnings too much. The price of 1 BTC towards other cryptocurrencies is constantly growing and a lot of financial experts give quite optimistic estimations for the end of 2017. The same situation happened in 2015-2016 and all predictions came true.
GGC: What are going to tell about at Georgia Gaming Congress?
A.S.: With your permission, I won’t lay all cards on the table, but I can tell that my presentation will reveal very interesting facts: both successful and negative ones. We will discuss a security system in terms of unfair consumers and protection ways. Beginning specialists will obtain fundamental knowledge and find out self-development ways in this sector. We will show on practice how one can switch to or add the cryptocurrency system in a day. The presentation will end with the one million quiz: those answering to the greatest number of questions will get one million in cryptocurrency!
You can learn more about bitcoin prospects in gambling and ask questions to Alex Sudadze at Georgia Gaming Congress on March 1.