Malta’s test of cryptocurrency is the beginning of acceptance by the gambling industry for the digital currency. However, numerous roadblocks will cause trouble for currencies like bitcoin in the gambling sector. People like Warren Buffet call cryptocurrency investing nothing more than gambling and not true investing. When a savvy investor turns down the future in technology and currency, it gives people pause.
Companies are trying to get people to use cryptocurrency by discussing the positive benefits to the currency, but it does not mean the industry is ready to accept it. Several press releases, interviews, and conferences are being held, which is pushing cryptocurrency at people. Some will not accept digital currency because it is in “your face” advertising, without a clear explanation of how it is supposed to work.
One of the biggest concerns is buying items, such as food at the grocery store with digital currency is not possible. It is hard to see how it could take over the cash we currently use. Then you have new digital currency options continuing to appear, which is part of the problem. How can one trust something that comes from thin air?
Alderney eGambling CEO, Susan O’Leary, was interviewed to discuss cryptocurrency entering the one sector that seems keen to use it—gambling. There are challenges to digital currency being regulated and accepted as a payment/deposit form.
Cryptocurrency and the Black Market
Bitcoin was the first digital currency to find its way into the media and use around the world. Gambling operators are adding it as a deposit option, but this leaves the question of how you can add a deposit method without some type of regulation for it.
Bitcoin is meant to be a self-regulating system, without any outside interference. It works on the blockchain, where you can track the “money” one has in bitcoin and ensure the instant payment is valid. But, with millions of transactions that can happen in one day, it may be more difficult to track legal transactions with bitcoin’s blockchain.
Businesses and gambling operations may use the payment method, but it is also a place criminals have been hiding transactions. While transparency should be clear, the black market or darknet is a place that is heavily into using the self-regulated system to pass funds. Regulators have to figure out how to get around the disadvantages that exist with the payment method being open to criminals to be comfortable with regulating.