Sep 18 (News On Japan) - Blockchain and Cryptocurrencies have gained popularity over the past few years, leading to widespread adoption of this not-so-new technology.
Cryptocurrencies can be described as tokens based on a value. They are fast, users can remain anonymous while using them, and connect users from all over the world. Currently, most countries around the world have no or limited regulation on use of cryptocurrencies and trading in them.
This adoption has also found its way into online gambling activities. Today, one can observe a growing interest in the creation of crypto casinos. These are the internet-based betting sites, wherein the users can deposit and wager with selected digital currency, not the official currencies.
While the introduction of crypto casinos has brought many benefits, like faster transaction time and anonymity, it also has setbacks and challenges, which include addiction. This article explores the rate of addiction and the financial ruin that Crypto gambling addiction causes.
What is Crypto Gambling?
Using various cryptocurrency tokens to place wagers on online casino platforms is known as crypto gambling. There are many different games available; these usually include poker, lottery, sports betting, and casino games. In certain aspects, crypto gambling is comparable to conventional fiat betting. The currency is the primary differentiator between crypto and traditional fiat betting. Conventional gaming sites take fiat currency such as USD, EUR, and so forth, but crypto casino sites exclusively accept cryptocurrencies (BTC, ETH, and LTC).
Benefits of Crypto Gambling
There are benefits that online gamers enjoy when they play at crypto casinos.
Lower transaction fees
Crypto transactions are known for low transaction fees compared to fiat payments. Consumers can gamble with cheaper costs because fewer middlemen are involved with Bitcoin transactions than with typical banking methods.
Anonymity
One of crypto gambling's key benefits is its increased privacy and anonymity. Players can place bets without revealing their identity because crypto transactions do not require personal information. Those who respect their privacy and wish to keep their gambling habits discreet may find this especially appealing.
Accessibility
Bitcoin is a global currency, and so are hundreds of other crypto tokens. This makes it simpler for users from various countries to wager on betting platforms by removing barriers linked to currency exchange rates and international transfer problems. Furthermore, consumers in areas where traditional gambling is forbidden can still participate.
Provably Fair Gaming
Even though Bitcoin gambling sites involve chance, some of them can offer provably fair gameplay because of blockchain technology. Provably fair gaming allows users to verify that it is impossible to manipulate the games. By being transparent, the platform fosters user confidence and gives users confidence that their gambling experience is impartial and fair.
Fast deposits and withdrawals
Cryptocurrency transactions are faster than traditional financial transactions, making them perfect for fast fund management since they let users start betting immediately and withdraw winnings without delay.
The Effects Of Crypto Gambling Addiction on Individuals
Beyond the benefits, there is a dark side to the booming crypto gambling industry. Many players, new and experienced, have given in to addiction. Individuals have had their lives overturned by emotional instability and bankruptcy.
Crypto gambling addicts often suffer from anxiety, depression, and even suicidal thoughts. The psychological toll is enormous. There have been reports of addicts who complain of strained relationships and social isolation. The constant fear of financial ruin and loss of trust further compound these factors.
Crypto gambling addicts also face shame and discrimination, creating a culture of silence, discouraging many from seeking the proper help, and worsening the addiction.
Impacts of Crypto Gambling Addiction on Finances and Economy
Aside from physical harm, addiction to crypto gambling also has disastrous financial consequences. It is a common knowledge that many addicts have lost their houses, life savings and even pushed their families to such state of poverty. It is somewhat discouraging to state that as more and more people succumb to the temptation of easy money, more cases of bankruptcy are observed.
Furthermore, the effects of gambling addiction go beyond the individual alone - it affects the economy as well. Some of the consequences are increased cases of theft and other crimes since individuals struggling with addiction will risk the extreme to recover their losses.
Occasionally, young people or individuals who earn less are at risk of developing an addiction to gambling. They are vulnerable to getting involved in other misleading marketing strategies since they don’t know much about finances and would do anything to change their current situation.
The results of gambling addiction are catastrophic, limiting their capacity to create a better future.
Money Laundering And Illegal Activities
Another disadvantage of cryptocurrency casinos is that since they do not have identifiable individuals and no Know Your Customer (KYC) and Anti-Money Laundering (AML) checks, they are suitable for money laundering and other unlawful practices. Due to this, criminals are approaching them for funding unlawful activities such as terrorism financing or for washing their illegal wealth.
Examples of such actions in the real world include the cryptocurrency exchange BTC-e, which laundered over $4 billion for illicit businesses, and AlphaBay. This darknet marketplace used cryptocurrency casinos to launder over $17 million in illicit proceeds.
The Function Of Industry Regulations
Because the cryptocurrency gambling market is not adequately regulated, consumer protection is treated as second best in the wild space of crypto gambling. Governments must intervene and set clear rules and protections to protect vulnerable people. This covers required cooling-off times, deposit caps, and age verification policies.
Cryptocurrency gaming sites are also largely responsible. Essential measures include implementing responsible gambling policies, offering addiction treatment services, and encouraging responsible advertising. Self-regulation alone is insufficient; industry-wide norms and accountability are required.
Responsible advertising and marketing are other crucial aspects that lack proper regulation. Policies must be implemented to properly guide marketing and advertising agencies to avoid putting out deceptive adverts to sway people into crypto gambling.
Conclusion
Finally, addiction to cryptocurrency gambling has an incalculable human cost. This is a very big problem that requires an urgent solution. An effective approach to addressing the problem should involve treatment, prevention, and education.
Industry leaders, governments, and individuals must collaborate to safeguard vulnerable populations and promote a safer environment. It's time to highlight the negative aspects of cryptocurrency gambling and give the welfare of those impacted priority.
