Bitcoin and Online Gambling: The Basics
What is Bitcoin?
Bitcoin (BTC) is a revolutionary type of hybrid digital currency or cryptocurrency that was conceptualised back in 2008. It employs encryption techniques to regulate and verify the transfer of funds. Including generation of units of currency and operates independently of a central bank.
With a growing community of over 2.5 million users and the rising value of the Bitcoin, it is the most common alternative to traditional currencies in use today. As more and more businesses, including online casinos, accept Bitcoin as a legitimate form of payment the currency value continues to rise. Also, is traded like any other commodity 24/7 on exchanges all over the world.
With traditional currencies, which come in coins and paper notes, a central authority decides when to print and distribute money. Bitcoins do not exist as a physical entity, like coins or notes, but are stored in electronic bitcoin wallets. These are the equivalent of regular bank accounts. However, there is no involvement of banks, and you can download and install the software easily.
Bitcoin transactions are completely anonymous. It is one of the most appealing features of this virtual currency, especially in the online gambling market. To ensure that anonymity is protected requires very complex processes, but the result is also a very secure system for transactions.
What is Bitcoin Mining?
Bitcoin mining is the process by which records of transactions are added to Bitcoin’s public ledger. Using highly specialised hardware and software the blockchain keeps the Bitcoin network stable, safe and secure. It is by approving and confirming the integrity of transactions – exchanges between wallets – that have taken place to the rest of the network.
It also uses a process of complex algorithms to control the release of Bitcoins into circulation. Even protect the market against inflationary pressure.
What is a Hardware Bitcoin Wallet?
The most secure types of wallet require a specialised piece of software that plugs into your computer via USB, such as Bitcoin Core. It means that you can only access the wallet by using the USB device. That unlocks it, and it recommends anyone storing large amounts of Bitcoins.
How Can You Buy Bitcoins?
There are a number of options for purchasing Bitcoins. Including wire transfers, credit and debit cards and cash. To avoid any scams you should always purchase from reputable sites such as VirWoX – Virtual World Exchange, Coinmama and Local Bitcoins.
Can You Use Bitcoin For Online Gambling?
In recent years the use of Bitcoin as a means of depositing and withdrawing money on online gambling sites has become more popular.
However, in a number of countries, the use of either Bitcoins or online gambling are illegal. This fact means that some people prefer the privacy that comes with using Bitcoin over traditional currencies. It is advisable to stay up to date on the laws regarding online gambling and Bitcoin usage. It is for your own protection, and you should only ever play at reputable and licensed casinos. See our article on the regulation of online gambling in the UK here.
All that said when you compare Bitcoin transactions to credit cards they are fast, cost-effective and secure and by their very nature. As a digital currency, they are ideal for use on online gambling platforms.