In 2009, a gentleman named Satoshi Nakamoto came up with an idea for a digital currency. He called it bitcoin. In the years since its introduction, the bitcoin has increased in popularity among both merchants and the people who enjoy the convenience of avoiding the world's banking systems.
42 Bitcoin Casinos
What is a Bitcoin?
As indicated, the bitcoin is a digital currency, also referred to as crypto-currency. It comes in its own denominations with the actual bitcoin representing the whole unit followed by the millibitcoin (one thousandth .001), microbitcoin (one hundred thousandth .000001) and a satoshi (one millionth .00000001).
Since there is no physical form, bitcoins are stored in a digital wallet. Currently, a bitcoin has a market value of approximately $528 with fluctuations based on daily trading.
Ownership of Bitcoins
In order to track the ownership of all the bitcoins in the world, a public computer ledger (block chain) is used. Each individual who owns any portion of a bitcoin is assigned a private key, which acts as both their account number and secret password. No private information (names, addresses, etc.) is exchanged.
The original bitcoins are created as payment for those who are responsible for recording all the ledger's transactions. These individuals are called miners. After mining for bitcoins, they convert them to real cash by selling them to customers based on current market rates. The private keys are used to record the transaction.
Uses of the Bitcoin
While bitcoins can easily be converted into cash based on almost any global currency, they are also accepted by merchants as a viable form of payment. Of course, any merchants that are willing to accept bitcoins must first register for a private key. Merchants are charged a small transaction fee of less than 2% for the recording of transactions, which is still substantially less than the 2%-3% fees charged by credit card companies.
Bitcoins and the iGaming Industry
After reviewing the bitcoin concept, it seems as though it was tailor-made for the iGaming industry. It allows gamblers to transfer a large amount of funds into their online casino accounts without having to go through the usual steps required to make deposits.
Today, the industry is seeing a growing number of online casinos that are being developed with bitcoins designated as the only acceptable form of deposit. These are often referred as "bitcoin casinos." Some existing casinos are also starting to accept bitcoins as one of a list of banking options.
Player Benefits of Using Bitcoins
The greatest benefit for a player using bitcoins is the ability to stay anonymous. If a player is depositing and withdrawing bitcoins only, they can open an account with an online casino under most any name without being required to provide proof of identification or any other personal information. They can also operate without the threat of having to pay taxes on large winnings due to the fact most governments have not yet figured out how to deal with bitcoin transactions.
Finally, players who reside in jurisdictions that don't allow online gaming can use bitcoins to circumvent government regulations related to the use of credit cards and other payment forms when making deposits.
Though there are current issues related to hacking and fraud associated with bitcoins, it looks as though they might be here to stay as a viable force in the virtual or digital currency marketplace.
Bitcoin is the most popular cryptocurrency that’s now also widely used across online casinos. Using bitcoins players can remain unanimous, circumvent government regulations and avoid paying taxes on large winnings due to the experimental and unregulated nature of the digital currency.
Posted by CCJ Team