We explain how cryptocurrency works and examine whether casinos will soon adopt the digital cash alternative in place of real money transactions.
Could new digital currencies such as Bitcoin enable players to fund their accounts more affordably and quickly? And is it time to rethink how we pay for services entirely?
With more online retailers adopting this fascinating (and rapidly increasing in value) crypto-currency, including Microsoft and Expedia.com, can we all soon abandon paper currency in favor of something more abstract?
Exactly what is Bitcoin?
Bitcoin is a digital ‘crypto-currency’ that was created with the Internet’s generation in mind. It enables global digital money transfers, and its proponents point to the absence of bank or government regulation as a significant advantage.
It was created in 2009 by an unknown inventor who went by the moniker Satoshi Nakamoto. Numerous individuals have claimed to be Nakamoto since then, but his true identity remains a mystery.
Rather than a regulated currency such as the British pound, Bitcoin operates on an open network where users are in control. Coins are generated, or’mined,’ by users’ computers performing complex mathematical algorithms.
Any Bitcoin generated is added to a Blockchain, and the method used to generate the coins guarantees that only a finite number will ever be mined. After 21 million Bitcoins are mined, no more will ever be mined.
Bitcoin’s value fluctuates in response to buyer and seller activity, rather than being pegged to the dollar or another currency.
Since Bitcoin’s inception, the price has risen dramatically. When the first online purchase was made in 2010, it was worth only $0.01, but by 2013, it had increased to $1,250.
Significant security breaches, such as the hacking of the trading platform Flexcoin, resulted in a year-long decline in the price of Bitcoin to $200.
However, it has since recovered and continued to rise. At the start of 2017, a Bitcoin was worth between $800 and $1000. By November 2017, it had risen to over $7,500, its highest value ever.
Bitcoin and online casino gambling
On the surface, with an increasing number of gambling sites adopting it as a recognized currency on their cashier page, Bitcoin appears to be an ideal deposit option for online casino games (korean site : 카지노사이트).
However, as the preferred method of payment for casino players, can Bitcoin ever completely replace VISA, MasterCard, and PayPal? And what if it causes a Bitcoin bubble to burst?