We first mentioned the new and little understood Bitcoin virtual currency in a blog post right here on Deposit-Methods.com last September. We also discussed in early December how this peer-to-peer Internet currency is gaining popularity on the web. And in the face of the failure of United States federal legislators to deliver a consistent nationwide online poker or online gambling package this past year, we took another look at how Bitcoin works. The good news? The new virtual currency may be a boon to the online gambling industry in the United States.
Since no banks are involved, and the Bitcoin transactions happen on a person-to-person level, US regulatory agencies can not prevent US companies from accepting Bitcoins as a deposit method. The current judicial laws in America governing funding and online gambling account are quite clear. Any company that knowingly accepts a US bank transfer as a deposit method for funding an account at an online casino is breaking the law. But since Bitcoins are a “currency” that was created virtually, and they have no ties to any banking system, the current slate of US online gambling laws should not apply.
The United States Department of Justice paved the way for alternative deposit methods on April 15, 2011 when they shut down the 3 largest poker sites in the US. Black Friday, as it is known, was an effort to police the laws in place at that time in the United States concerning online gambling. What they may have done is actually help the growth of non-bank based virtual currencies like Bitcoins. One small business owner that plans on honoring Bitcoins as a deposit method is based in Canada and plans on accepting Bitcoins as a deposit method when his online gambling site opens later this month.
Michael Hajduk has invested more than $20,000 into creating his online poker site, Infiniti Poker, and he remembers Black Friday all too well.“It was like a bomb went off,” Hajduk says. He pointed out that many US players fled the country simply to be able to legally continue gambling, although the US Government was not going after individual players. The Bitcoin currency was developed way back in 2009 by an eclectic computer programmer that goes by the name Satoshi Nakamoto. Each Bitcoin has a fluctuating value that is determined by demand, just like the US dollar or British pound.
And several merchants around the world already accept Bitcoin as a viable currency. What type of names are we talking about? Over 700,000 brick-and-mortar US locations allow you to purchase Bitcoins, including many Wal-Mart and 7-Eleven stores. And the reason why small business owners and online casinos are so attracted to this virtual deposit method is speed. Hajduk says that current US law means that bank transactions can take up to an incredible 12 weeks to process. Players who choose Bitcoins can get a payout directly to their account in a matter of hours. This is obviously something that is going to be incredibly attractive to the online gambler who doesn’t want to run the risk of their personal checking or savings account at their local bank running into problems with US regulatory authorities. Be sure to check back often for more news updates on this up-and-comer in the casino deposit method industry.