Have you ever grown frustrated with a bank or a middle man on your day to day transactions? We all have, when we need to follow the rules of a central authority that demands our information and fees we do not like it.
What is BitCoin?
In 2008 a new payment technology was introduced as collective form on the red; with no owner and an open code. It was made to work from peer-to-peer without the third party host of a bank or central authority.
It charges no transaction or regulation fees because it is not tied to any government. It is growing into more and more businesses as merchants and small businesses become interested in them; some people even buy them as an investment in hopes that their value will grow. They are called BitCoin.
BitCoins ask for no information of the parts, you can actually buy or make payments without your real name just your “Wallet ID”, though every transaction is recorded on a public log. The KYC or Know Your Costumer process is lost with the use of BitCoin and the problem with the lack of this process is that a lot of illegal and corrupt activities are happening. Governments are fighting hard to prevent or regulate them but it has not been an easy path.
Now another problem has arisen, the popularity of BitCoin like we mentioned before, has gotten far beyond what people had thought and made millionaires of thousands of users, and it has finally gotten to big industries like Casinos. Now, casinos –even online casinos- maintain high security and safety standards, or so they have been up until recently. With BitCoin Gambling starting to emerge, we might see no ID checks as the new standard for those looking to gamble online.
What is the Know-Your-Customer Process?
The Know-Your-Costumer process is the one where the provider of a service (retail, commercial, etc.) gets to know its costumer pun intended. A store should and usually does ask for a valid government ID to accept any debit or credit card payment; that is way they can verify the costumer information.
The problem with this is that the Know Your Costumer process that is lost on BitCoin thus is now being lost in the casino and gambling industries as well, because players are not required any form of ID verification for the payment to be processed. If there is no form of control of the players that are using BitCoin as payment in Casinos, that means that there is a bigger chance of underage gambling.
Licesing and Regulation of BitCoin Gambling.
Even though a lot of online Casinos say they accept BitCoins many of them are not licensed to do so, so many people have been cheated out of their money for trusting shady sites. People need to be a lot more educated on BitCoin before going about using them. Another main problem with the BitCoin gambling is that there is currently no regulation on it; that means there is a huge gray area of legality and illegality concerning the regulation of BitCoin gambling because there is no actual law that defines it just yet.
On regular bank accounts we, the users, have a limited number of operations we are allowed to perform per day. With BitCoins and online casinos there are no transaction limits, making any number of deposits of any value are permissible. Serious gambling problems come for people who have a hard time setting limits for themselves, if someone who is addicted to gambling came across an opportunity where there are no limits to what they can spend, it would almost always result in a catastrophe.
Young kids are the most vulnerable to these type of operations, with their quick online and technological knowledge and their easy access to the internet and its derivatives it could mean a whole generation of gamblers with addictive tendencies and absolutely no limits to what they can spend and no laws to hold them responsible in their anonymity.
In spite of all of this, the invention of BitCoins –although not perfect- has many advantages that the known currencies do not. We believe with the proper education to its users by helpful servers and the time for it to finish developing, will make the Bitcoins invention a truly great one that will help millions of people and their businesses globally for years to come.