With the ever-increasing rise of Internet shopping and online payment systems, there is new payment technology being rolled out constantly. From the initial days of PayPal to newer web wallet services like Neteller and Skrill, now comes the future of online payments; Bitcoin. Read on to find out how Bitcoin is being used to play online casino games for real money and discover the casino sites that accept Bitcoin deposits.
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Bitcoin presents some exciting opportunities about the possibility of gambling online using virtual currency methods and has the potential to make real money gambling on the Internet even easier. The problem with Bitcoin is that many people still don’t understand exactly what it is or how it works and this lack of knowledge leaves people sceptical.
As Bitcoin is starting to find its place at online casinos, we think it’s important that punters get their heads around exactly what Bitcoin is, and we have attempted to explain it as simply as possible.
What is Bitcoin?
Fundamentally, Bitcoin is a virtual currency. Although it holds genuine monetary value, it exists only in the digital sphere and not in the physical form. Operating independently of any bank or financial institution, Bitcoins can be transferred online from one individual to another and essentially works as a form of Internet only cash.
Instead of being managed by a bank, Bitcoin runs off one centralised ledger shared by all users. Bitcoin describes itself as “the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen.”
The key difference is unlike real cash which is administered by government regulators who determine when and how much money can be printed, Bitcoin is limited to 21 million Bitcoins. The Bitcoin amount is definite, therefore the value can be determine by the fact that supplies are limited and more can’t be created.
Can you use Bitcoin to deposit funds at an online casino?
Up until recently, it wasn’t possible to use Bitcoin to fund your online casino account. However, many will be pleased to know that some of the best online casinos are now accepting Bitcoin deposits, with more venues expected to catch on as demand for this product grows and online gambling regulations get tighter. You can use Bitcoin to deposit at these top-rated casino sites:
Bitcoin payments offer some great benefits to online casino operators, including virtually non-existent fees and the power for players to remain completely anonymous, a factor that may be appealing to some punters. Another huge benefit to Internet casinos is that as Bitcoin is operated entirely independently, there are no payment restrictions like the limits that can sometimes be imposed by banks.
If you’re eager to use Bitcoin for real money gambling, we strongly advise sticking to the casinos recommended on our site as these venues have all been tested for security, legality, variety and come with a wide range of safe deposit methods.
How does Bitcoin work?
Understanding how Bitcoin works is quite complex, but stripped to the basics, consumers can purchase and spend Bitcoin’s without understanding the more technical details. To use this payment service, you’ll need to install a Bitcoin wallet app on your computer, smartphone or tablet.
You’ll then be assigned with a Bitcoin address which is the location you’ll use to send and receive Bitcoin currency from, similar to an email address but the difference being that you can only use an address once. From your Bitcoin web wallet, you can purchase more Bitcoins from the centralised stock exchange.
All Bitcoin balances and transactions operate from the ‘block chain’ which is a shared public ledger that upholds the entire Bitcoin network. The block chain records every transaction ever processed and is enforced by state of the art cryptology to ensure 100% security, chronology and integrity.
One of the more complex concepts to those who aren’t particularly tech-savvy is the notion of Bitcoin mining. To try and put it simply, unlike real cash which is printed, Bitcoin currency is discovered by ‘miners’ who use their computers to compete with others to collect coins.
The thing is that Bitcoins are constantly being transferred online, but there’s no one to record the transactions and keep track of the expenditure. The Bitcoin system deals with this by allowing ‘miners’ to confirm transactions and record them in the ledger of the block chain, with Bitcoins being awarded as payment for this service. Miners use mathematical formulas to ensure the block chain continues in chronological order and protect the impartiality of the network.
Sound insanely difficult to comprehend? It is! Thankfully, for general use of buying and selling Bitcoins this knowledge is not needed, but there’s plenty of detailed information on the net for those who want to know more about the complexities of Bitcoin mining.
Bitcoin – a history lesson
The idea of Bitcoin first arose from the Global Financial Crisis, with the intention to take the power away from big banks and governments and decentralise the flow of currency. Prior to its release, there were several other e-cash technologies starting to circulate but none with the same power or high levels of innovation, making Bitcoin superior.
The concept of Bitcoin was first unveiled in 2008 in a research paper titled ‘Bitcoin: A Peer-to-Peer Electronic Cash system.’ The paper was released by Satoshi Nakamoto, an anonymous person or group of people who still haven’t been identified to this day. It is unknown whether Satoshi Nakamoto is a real name or pseudonym and whether it’s attached to an individual or an organization.
In 2009, Bitcoin was released as open source code. Since then, the digital currency has experienced strong growth, as more and more influential organizations began accepting Bitcoin as a legitimate form of payment, including for university tuitions, charity donations and retail purchases. In October 2013, the first ever Bitcoin ATM’s were released in Canada, allowing users to buy or sell Bitcoin currency from a coffee shop.
The value of each Bitcoin fluctuates in a similar manner to the price of gold, with the highest value spike happening in January 2014 with each Bitcoin valued around the $1K mark.
The laws and safety surrounding Bitcoin
Bitcoin is recognised as a legitimate decentralised digital currency holding genuine value by most developed countries including Australia, the USA and the European Union. Depending on the law of your country, Bitcoin can be considered as property and recognises funds as an asset that must be declared for capital gains tax purposes.
Bitcoin is currently illegal in some countries, including Russia, Vietnam, Bolivia and Ecuador. Different governments each treat the virtual currency differently, but essentially there is no regulatory framework behind Bitcoin. The Australian government did try to create a regulatory body in late 2014, but to no avail, concluding that Bitcoin is a singularity that’s incapable of being regulated.
Bitcoin transactions are public information, with the time of payment, amount of payment and the Bitcoin address of the seller and buyer both displayed for all to see, however your human identity is never disclosed so all users can remain completely anonymous. Bitcoin transactions are safe and are protected by mathematical algorithms, with a peer-reviewed network used to verify all payments. The value of Bitcoins fluctuates dramatically, in a similar value to the stock market, so the security of the value of coins is up to the fate of the market.
If more casinos start allowing the use of Bitcoins, ensure you play at a recommended secure casino like the ones recommended on our site and using Bitcoins will be completely safe, with these casinos protected by the highest in digital SSL security encryption.
If the idea of Bitcoin all seems a bit too confusing, there are plenty of secure payment methods to fund your real money casino account including Visa, MasterCard, direct bank transfer, Neteller, Skrill, Entropay, Paysafecard and more.