People who gamble online are more apt to have actually used a cryptocurrency for their gaming transactions than the general public. But for the most part, those who have heard of cryptocurrency, may have a negative opinion. One that would be based on news stories about hacks, thefts and scams that were common in the early days. And that is a shame because cryptos are an alternative form of money that central authorities cannot dilute. They can also provide complete anonymity, something that only diamonds and precious metals have been able to do.
The negative issues with digital currencies are becoming a thing of the past with the introduction of the blockchain, a mechanism that is transforming the new currency. Similar to a bank ledger that records all transactions, the blockchain is a completely transparent ledger that tracts the actual currency units, not the people making the transactions. Contrast that to the closed-ledger system of a bank that only the bankers have access to with the open-ledger system for cryptos that anyone can see, which keeps everyone honest.
As it stands with our current banking system, we have to trust that the banks have the money they say they have. During the last financial crisis in the U.S., many banks lied about their financial health. For example, Citibank failed to disclose over $70 billion in liabilities. People should have gone to jail. But with the blockchain putting financial transactions out in the open, much of the fraud and unnecessary costs will be driven out of the banking system.
Currently, more than 100,000 merchants accept the world’s most popular cryptocurrency, Bitcoin, as payment. This includes major retailers like Overstock, Costco, Wal-Mart, Starbucks, and Microsoft. It’s not just U.S. companies utilizing cryptocurrencies, but worldwide acceptance as well. To demonstrate how widespread usage has become, even a French bus transit company is accepting payment with Bitcoin.
And think about gambling online. There’s a lot of shady things that go on in the online gambling industry, but with the open-ledger concept, cryptocurrencies will eliminate fraud and criminal activities related to money laundering. Giving the digital currency a vote of confidence, the United Kingdom Gambling Commission recently approved Bitcoin for online gaming.
All currencies have drawbacks and none are completely infallible. But as more of the kinks get worked out of the system, crypto currencies will gain universal acceptance. The blockchain is the key, and as of yet, no one has been able to hack it.