Using bitcoin in online casinos can change the psychology of users | Credit: Sora
Key Takeaways
Bitcoin’s price can swing dramatically in minutes, which adds another layer of unpredictability to gambling.
Because Bitcoin feels less tangible than cash and is often used in fractional units, losses can feel psychologically detached.
Speculative crypto trading and gambling share similar psychological drivers.
Online gambling has always been about psychology as much as probability.
The virtual casino isn’t just a place where people play games of chance, it is a place meticulously designed to shape participant behavior.
However, today, the choice of currency is also helping to alter the psychology of gambling.
Increasingly, gamblers are placing their bets in online casinos with Bitcoin rather than traditional fiat money.
Although primarily a technical difference, playing with the world’s biggest cryptocurrency is changing how players perceive risk, reward, and loss.
The thrill of gambling in online casinos, which must always be approached responsibly, can be amplified by the inherent volatility of Bitcoin.
Playing with fiat money means all deposits are stable; £100 today will still be worth £100 tomorrow.
By contrast, a Bitcoin balance can rise or fall sharply in a matter of minutes.
This volatility, one of the attractions of crypto itself, is very likely to heighten (or negatively impact) a player’s casino experience.
For example, playing games when crypto markets are rising could subconsciously push users to make riskier bets, rationalizing that they are already “winning” with the asset.
“The volatility and unpredictability of these currencies can sometimes create a similar environment to gambling, where people are starting to chase the rush rather than feel they are engaging in a financial activity,” said Raminta Diliso, Financial Harm Manager at GamCare, said.
Losses at the roulette table may be disguised by gains in crypto prices.
At the same time, a sharp drop in Bitcoin value could also drive players to riskier bets, chasing losses in both their portfolios and casino games.
Much like credit cards, Bitcoin is an abstract form of money and is very different from holding physical, tangible cash.
When playing with Bitcoin, which exists in decentralized digital wallets, players usually deal with fractional units.
This feels entirely different from spending real money used to pay bills and cover daily living expenses.
Some psychologists argue this abstraction makes risk-taking easier, as the losses feel less sharp and more detached.
Traditional online casinos tied to fiat currencies typically demand rigorous Know Your Customer (KYC) checks: proof of ID, addresses, and bank details.
By contrast, many crypto-only platforms offer fast, anonymous play, which may remove guardrails against compulsive behavior.
When gamblers don’t see charges on a bank statement, or can play without disclosing personal details, the separation between their digital casino life and financial reality grows wider.
Problem gambling, which often thrives in secrecy, may be harder to detect when transactions are hidden away from traceable records.
In 2021, a YouGov survey of over 4,200 U.K. adults revealed that individuals gambling at harmful levels were almost five times more likely to own crypto than the general population.
Many experts believe gambling and speculative investing share significant similarities, mainly due to the constant risk of loss.
Certain parts of crypto trading, particularly short-term and highly volatile forms, overlap strongly with gambling behavior, according to researchers.
In a 2021 essay, scholar Paul Delfabbro and colleagues wrote:
“Some forms of activity, often characterized by speculation and day-trading, appear to have many similarities to gambling.
Harriett Baldwin, U.K. Shadow Business Minister, previously said the “sharp peaks and drops in the value of cryptocurrencies clearly demonstrates the risks speculating on them can pose to consumers.”
“Trading of cryptocurrencies, like Bitcoin, is equivalent to gambling,” she added. “By betting on these unbacked ‘tokens,’ consumers should be aware that all their money could be lost.”
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