Bitcoin is one of the most well-known types of cryptocurrency in use on the internet. It’s not just used for transactions online but also as a form of investment. And so far in 2020, it’s doing better than gold, silver, and oil. The bitcoin payment method has become a part of the deposit and withdrawal options of many online casinos and the number of adopters is constantly growing. Learn why so many people online are turning to bitcoin, and how it could change online casinos. Please notice we do not offer it on All Slots Casino.
What Are Bitcoins?
When you think about Bitcoins, you might think pile of shiny coins hidden away in a high-tech safe. But in reality, most cryptocurrency isn’t really a coin at all, but a piece of code. And, most people don’t have a pile of them—these days they might only own a small portion of one coin due to their high value. The truth is, even though we’ve heard a lot about them in the news lately, most people don’t really know what bitcoins are and how they work.
The reason they’re so mysterious is because it’s a super complicated process. Bitcoin is a cryptocurrency that doesn’t have any central authority like a bank or country that governs it. Instead, it’s sent between users directly using a bitcoin network, and governed by block chain technology that verifies and tracks transactions.
It was started by an unknown person called Satoshi Nakamoto in 2009, and is created through a process called “mining”. Creating a bitcoin uses computer processors to add on to the block chain code, and rewards the maker with new bitcoins. It takes strong computers and lots of time to be able to create bitcoins, which keeps the number of them under control. The block chain technology ensures that the currency is secure, and makes it impossible to scam the system with methods like using the same coin for multiple simultaneous transactions.
Who’s Using Bitcoin?
Ever since the Internet became more central to our lives, people have been thinking of ways to securely spend and make money online. Without a governing body or any physical representation of money that can be protected, it’s important to be create a system that’s secure. That’s why so many people have latched on to bitcoin, including casinos.
It’s used in all sorts of online transactions, particularly by the more tech-minded among us. Because it can be anonymous and is peer-to-peer, it’s a safe way to complete transactions around the world. Many people use bitcoin at online casinos as well, though it still isn’t accepted across the board. It’s helpful in international transactions because there’s no concern about exchange rates or extra fees that can often happen with global purchases.
Is it a good investment?
Everyone has been talking about how Bitcoin is starting to outpace traditional investments like gold, silver, and oil. That’s because it’s secure and generally steady, but also because it’s about to be in shorter supply. In order to keep the amount of Bitcoin in check, the value of new bitcoin is sometimes adjusted. Starting this May, each new bitcoin will be worth half as much, which analysts have predicted could cause big spikes in its exchange rate.
2020 has been a time of economic uncertainty, with huge fluctuations in the stock market. In times like these, people have traditionally invested in gold, which tends to hold its value because it’s in finite supply and has good demand. But this time, bitcoin has been a key player. People are concerned about the instability of banks and the threat of government debt that could lead to the depreciation of other currencies.
This isn’t the first time there’s been a surge in the exchange value of Bitcoin. In late 2017-early 2018 it was worth almost twice what it is now, which brought a lot more attention to it as people tried to figure out how they could get involved and make some money. Also, bitcoin isn’t the only cryptocurrency out there—other digital currencies like Ether have been on the rise as well.
It’s no surprise that bitcoin has received some criticism over the years too. Some analysts are concerned about how stable it actually is, and warn that it’s much more volatile than traditional investments like gold. Some people have said it is a speculative bubble, which could burst at any time. Other groups have spoken out against the high amount of energy that goes into mining bitcoin—which uses a ton of electricity and therefore creates high emissions and has a large carbon footprint. It’s been estimated to account for about 0.2% of the Earth’s total electricity consumption.
It has also been the focus of investigations around illegal activity, because the downside of a totally anonymous currency is that it can easily be used for illegal purchases. Because of all the unknowns that surround it and its high value, it’s also a common target of scamming and hacking schemes. That’s led lots of international authorities to issue warnings about it, which has dissuaded some people from investing.
Why it matters in online casinos
Even if you don’t start using bitcoins for your everyday online purchases, it’s fairly likely that you could use them for casino transactions. Because it’s a secure digital banking option, you wouldn’t have to worry about credit card or banking information online. By setting up a bitcoin wallet and converting some of your money to bitcoin, you’d open up lots of payment possibilities. You could also rest easy that your personal information was secure, since less data is required to pay with bitcoin than many other traditional methods.
One issue that a lot of people see with using bitcoin in casinos (or anywhere else) is that its constantly changing value could be dangerous. Some see bitcoin as just another wager—you may “win” by investing money in bitcoin, but you have to realize that its volatility also means you could lose money quickly if the market changes. It’s certainly worth doing your research before investing your money in Bitcoin.
Nonetheless, as casinos continue to try to stand out and make things as convenient as possible for their customers, we’re likely to see bitcoin appear on a lot more sites if it keeps rising in popularity. If bitcoin isn’t for you, there are fortunately plenty of other secure ways to complete transactions in online casinos. And, while investing in bitcoin might “win” you some money in the long run, most people would have a lot more fun trying to win by playing an exciting slot game or trying their hand at other casino classics.