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Cryptocurrency Lotteries – Can They be Trusted?

btclottoBitcoin lotteries are slowly taking over the lotteries popular over the internet. It is insane to see the direct impact cryptocurrencies have over every aspect of our lives and even seemingly ageless deals like lotteries are changing too. Now bitcoin lotteries offer a chance to win a lot of money after buying lottery tickets online. Although online lotto is not a new idea and websites such as Lottosend have been doing it for many years, the online crypto lotto industry is very new indeed.

To help prevent rigging of the lottery contests which happens in most casinos and other lottery methods around the industry, bitcoin lotteries aim to make their lottery algorithm open-source and thus anybody can point out any flaw or rigging in the system. Their tendency to be open and more generous with the winnings is what makes them such an attraction. They give better odds of winning as well.

While this model makes lottery easier, it does raise a lot of questions that are left unanswered. Many cryptocurrency guys are saying that this could be the future of the lottery and even gambling itself but that might not be the case. It is an interesting application for using bitcoins or any other cryptocurrency as it provides an alternative funding source for the lottery.

Many of the crypto buffs and traders don’t like to convert much of their money back into fiat currency and that is why they would prefer to bet on bitcoin lotteries. The open-ness of these lotteries are also a major selling point but here is why you need to approach with caution.

First of all, volatility of bitcoin can be really damaging. For example if you enter a lottery and the draw is sometime later, the price of the bitcoin will affect many things in your lottery. If the price drops and you win a small prize, even then you are likely to end up in a loss. This is one factor that cannot be ignored. In lottery you expect to earn money when you win and that is just not the way it works in bitcoin lotteries. You bet bitcoins and you get bitcoins in return.

The lotteries also make the case with no photo ID required for entering it. Most of other fiat currency based lotteries ask for some form of ID like driver’s license among other things. Most people aren’t comfortable at all uploading their identity as identity theft is a real deal and not the stuff of myths anymore.

But the question remains that can you trust these guys? You can find good and bad reviews of these altcoin lotteries but you should ask someone whose judgement you can trust. If they give a positive review, you can approach the website with much ease. Rely on first hand experiences only. You cannot claim any money or trust the law to get it back if you are conned here. Remember that it is the bitcoin world where anonymous transactions are at work.

We will back with more aspects of the bitcoin lottery industry.