PGRI Note: “Cryptocurrencies” have no value outside the virtual world of Internet-based commerce. They do, however, have the potential to create a massive underground gambling economy. Banks, credit card companies, and other financial institutions and payment processing mechanisms which operate “on the grid” of conventional commercial networks are subject to laws that can be used to control, or even prohibit, online gambling. These “Cryptocurrencies” operate off-the-grid with no exposure to the laws that govern financial and commercial networks. This enables online gambling networks can operate freely wherever they wish. That is why the percentage of BitCoin transactions for gambling is sky-rocketing. Of course, by avoiding regulatory oversight, cryptocurrencies also enable the operator and players to avoid paying taxes. The impact on the online gambling world is potentially huge.
|Analyst firm Gartner forecasts there will be 25 billion things connected on the internet by 2020|
Public Gaming Magazine January/February 2014