What is Bitcoin?In today’s modern society, nearly everyone has tried to replace a regular habit by turning it into an online convenience.

Some choose to switch to online shopping, others look for online casinos or poker rooms which are just like the ones they had nearby. No matter what it is, people are trying to  invest a piece of the modern air in it.

Currencies are no different, as digital money have started to appear over a decade ago. Nonetheless, not one of them has had the same luck and success rate as the one that keeps coming up at your gambling sites as a payment method.

The bitcoin has managed to become an important financial factor, as experts claim that its influence on multiple economies will eventually cause their governments to accept it as legal tender.

Definition of Bitcoin

Simply put, bitcoin is a digital currency, also known as a crypto currency. It functions in a completely decentralized manner, as there is no major financial institution which normally controls all operations. As a result, it is neither backed by banks and governments, nor by any precious metal. Its value is practically inherent and intrinsic of the currency.

In a broader sense, the Bitcoin is a complete network, a computer system run by bitcoin owners all over the world. They process the transactions, verify their fidelity and ensure prompt system responses. This also enhances the system’s security, a characteristic widely used in online casino sites, poker rooms or even online sportsbooks both for deposits and withdrawals. What makes bitcoins even more attractive is the lack of processing fees, as there is no central body which would charge any.

Historical Preview

Bitcoin History

There is an interesting story behind bitcoin’s appearance. The Bitcoin network as a whole was first released in 2009 by its creator represented under the pseudonym Satoshi Nakamoto. Along with the currency, Nakamoto also published a paper explaining the entire workings of the system. Ever since then, when its value was less than 20 cents, Bitcoin started building its user network.

Speaking of bitcoin’s value, it’s important to mention that it is completely volatile. It can suffer sudden fluctuations as it is not supported by any specific institution. Its use as a payment method for the major gambling sites is a major factor in this aspect. The widespread network that it has built has played a major role in its stabilization.

How to Get Bitcoins

Once you have decided to get started with bitcoins, you will need to acquire at least some as starting capital. There are several ways to do it. The two most straightforward ways include bitcoin exchanges and peer-to-peer payments. Bitcoin exchanges function very much alike regular ones, only these are fully operated online. All you need to do is choose the desired amount of bitcoins and provide the equal amount in your regular fiat currency. The same process applies to the latter option, only here the transaction is between two private individuals.

The third way to get bitcoins is through bitcoin mining. This is a specific process which goes on in the Bitcoin network. Namely, people all over the world are connected to it in order to help support transactions, confirm they are veritable and profit along the way. The actual process starts when a person anywhere in the world sends a certain amount of bitcoins to another individual at any location.

Since the bitcoin is a crypto currency, they are not existent in reality and solely persist as digital keys. In order to secure the transaction, there are all kinds of mathematical tasks which need to be resolved. This is where bitcoin miners step in with their powerful robust PCs and unique software that can solve the tasks. In the end, they are awarded about 25 bitcoins.

Where to Keep Your Bitcoins

Realizing that the bitcoin is actually intangible can help you get used to the fact that it needs to be kept somewhere suitable. E-wallets have existed even before the rise of bitcoin, although they were mainly intended to hold your fiat currencies. Nowadays, there are several kinds of bitcoin e-wallets which allow you to choose the storage method for your bitcoins.

These wallets can store bitcoins online, offline as computer software or completely separately on a hardware device. Each option is as reliable as the next one, which is why people are prompted to choose based on their preferences. Both online and offline e-wallets are subject to hackers’ attacks, which is why they tend to offer highest security protocols. Hardware wallets are also risky, as they are normally in the form of a USB or another device which can be easily damaged or lost. With it, you would lose every bitcoin you had stored.

Practical Payment Method – Yes or No

Great debates have been organized in order to pinpoint and weigh out the benefits and disadvantages of the Bitcoin system. On the one hand, it is completely revolutionary and unique. The level of security it provides is able to measure up to the governmental precautions against possible hacker attacks. As for its speedy transactions, bitcoins have been greatly welcomed in the online gambling industry as the only method that allows instant deposits and withdrawals.

The fees for such transactions are next to nothing, but the greatest advantage which made people curious about bitcoins is the level of anonymity it provides. Since it is not regulated by any bank or government, it does not require any personal information. Apart from a standard email and a password of your choice, there is nothing that can trace a bitcoin transaction back to you.

Disadvantages are also present, just like with any other phenomenon. The major cause of trouble for bitcoin owners is the fact that there is no institution to back it up. As much as they are pleased by the network’s promptness, security and anonymity, many people are still afraid of its changes in value. Although it’s a grey area in most countries, there are some which have officially proclaimed it illegal. Each time it happens, the value takes a sudden slump. Another issue arises from its digital nature – the lack of any paper record of the transactions can be detrimental to the bitcoin owners and the legal system in countries concerned with illegal payments and money-laundering.

FAQs

Is bitcoin as a crypto currency really used to pay for certain services or products?

Yes it is. Many people were surprised by the fact that something which does not exist can be used to book a hotel, schedule a flight, pay for legal services or even order the latest Windows 10 products from Microsoft. With its use at online gambling sites, there is no doubt bitcoins have their value and can be used to win some more.

Can bitcoin be subject to any taxes as the fiat currencies we regularly use?

The bitcoin as a currency is not regulated by any institution. It has been made illegal by some and consequently banned by other jurisdictions which have stricter anti-money laundering policies, but no country has yet recognized it as a legal tender. That is why no tax policies can affect it.

How are bitcoins created?

The process of bitcoin mining is used to create new bitcoins. Namely, those developers which conduct the mining process and solve mathematical problems through their specialized hardware and software maintain the transactions’ security. As a reward, they are given a limited number of bitcoins, which makes the process quite competitive.

Have there been any hacking attempts on the Bitcoin network and if yes, what was the outcome?

Bitcoin has been attacked on multiple occasions, mostly with the purpose of stealing bitcoins. However, the actual attacks which targeted the network have been unproductive, as Bitcoin’s security protocol repelled them all. Still, there has been great advancement in improving the network’s security, as each separate problem is instantly found and fixed.

Could I copy bitcoins and use them on other transactions?

There is no way you could copy your bitcoins and use them again for a different transaction. This is because of the system’s settings which would recognize that the bitcoin’s original blocks have changed due to duplication. In this regard, it is also important to remember that bitcoins are capped at 21 million, after which there cannot be another bitcoin creation.

Conclusion

All in all, the bitcoin crypto currency and the network in general have witnessed a great rise in fame and use. It has managed to spread on a global scale and improve entire industries – like the online gambling business – with its advantageous features. Therefore, it is believed that there is a good chance it might overcome the major obstacles and enter the sphere of everyday life.