Unless you’ve been hiding underneath a rock for the past few years, you have probably heard of Bitcoin. While you may not fully understand it, you most likely know that Bitcoin is a type of currency used online. In essence, this is exactly what Bitcoin is: a digital currency that operates independently and in parallel to the global economy. In order to really understand Bitcoin and its uses, we need to get into the finer details. So, if you want to get a better understanding of online Bitcoin casinos, then keep reading.
What is Bitcoin?
Okay, so let’s start at the beginning. What is Bitcoin? Bitcoin is defined as a cryptocurrency or digital currency. This means that there are no physical Bitcoins floating around. The currency itself exists in cyberspace, which means that it is only used and transferred online. This makes it ideal for online casino payments, money transfers or any other type of web payment. Unlike web wallet systems that get funded from local currencies, Bitcoin is its own currency with its own exchange rate.
Installing a Bitcoin Wallet
So how do you get Bitcoins? If you want to receive or send Bitcoins, you first have to install a Bitcoin wallet on your computer or smartphone. It is best to view this digital wallet as an actual physical wallet that, when lost, will take your money with it. This means if your computer crashes, your Bitcoins go with it.
Once you have installed a Bitcoin wallet, it will produce a Bitcoin address. This is a one-time payment address that can be used for a single transaction for selling or buying Bitcoins. Your Bitcoin wallet can produce a new address every time you need to do another transaction.
When you do a transaction with Bitcoin, your digital wallet will keep a piece of information called a private key or seed. This is used as digital signature to ensure proof of the transaction. It also prevents the transaction from being alerted by outside sources.
Bitcoin transactions are tracked and confirmed through a process called Bitcoin mining, which is when transactions are confirmed by including them in a “block chain”. The process allows different computers to agree on the state of the entire system. The system works by using ordinary people to crunch the numbers on their computers and earn Bitcoins in the process. Leaving out all unnecessary technical stuff, what you have at the end of the day is a currency that can be bought, sold and transferred to other wallets.
Where to Get Bitcoins
Now that you have decided to use Bitcoin and have installed a Bitcoin wallet on your computer or smartphone, what next? Well, now you need to get your hands on some Bitcoins. You can do this by buying Bitcoins at online exchanges. If you provide a service or sell something online, you can also be paid in Bitcoin. Bitcoin exchanges are usually the easiest way to top up your wallet. Exchange sites rely on peer-to-peer transfers with local bank payments or secure credit card payments.
Once you have Bitcoins in your digital wallet, you can now get started using your digital currency to purchase goods and services online. As mentioned earlier, the online casino industry is the ideal place for Bitcoin use. Not all online casinos accept Bitcoin at this point in time, but the number grows each day. Pretty soon, it will be listed as a standard deposit method alongside credit cards and Internet transfers.
Funding Your Casino Account
Bitcoin does share similarities to web-wallets, but at the same time, Bitcoin is a separate currency altogether. You can think of it as a global currency that every country in the world can use at the exact same exchange rate. This makes it a lot easier to work with at a casino. For example, a casino might charge you exchange fees for your currency if it is not on the list. If all currencies were worth the same, wouldn’t it be a lot easier to buy and sell stuff?
Bitcoins have a set value and can be used to top up your online casino account. In order to make a casino deposit, all you need is the Bitcoin address of the casino. You can then open up your Bitcoin wallet and “Pay” the casino. The transaction is processed within 10 minutes and your account will reflect your balance straight away.
One reason why Bitcoin payments are growing in popularity is that they can be completely anonymous, with just a login name needed and a Bitcoin address. The fact that they are not regulated by a set entity is still a talking point, which is why the MGA won’t allow any casino it licenses to accept this form of cryptocurrency just yet.