Many of the top online casinos on the Internet accept Bitcoins in exchange for casino chips. However, very few people understand what a cryptocurrency is, or why Bitcoin has value for online gamblers. In this article, you will learn what a cryptocurrency is, why Bitcoins continue to become more valuable, and how online gamblers can take advantage of Bitcoin to uniquely position themselves in the world of online gambling.
What is a Cryptocurrency?
Like the US Dollar or British Pound, Bitcoin is a currency. However, the main difference between the dollar and Bitcoin is that the dollar is tangible, whereas a Bitcoin is an intangible digital commodity. In essence, Bitcoin and other cryptocurrencies are nothing more than digital currencies in the same way that the dollar is a touchable currency.
One of the main benefits of cryptocurrencies is that they can be traded digitally, meaning they have equal value no matter where you live in the world. This is not always the case with fiat currencies. For example, people trying to buy a candy bar at an American convenience store using Thai baht will find that the baht has no value on American soil. This is not the case with Bitcoin, which can be traded, sold, and purchased in any corner of the globe so long as you are on a network that trades Bitcoin.
The fact that cryptocurrencies are decentralized — meaning they are not printed by one central bank or valued by a particular government — is one of the biggest benefits of owning a cryptocurrency like Bitcoin as well.
Why Do Bitcoins Have Value?
Bitcoin made its debut in 2009, and is often recognized as the world’s first decentralized, completely private online currency. Bitcoin has no official physical denomination, but maintains its value inside a complicated digital network.
There are several reasons why people value Bitcoin, and, consequently, why Bitcoin has value. Bitcoins have become valuable because they are seen as the first valuable online currency. That is, Bitcoins have become popular enough that they are able to sustain value. People who value Bitcoin have become engaged in complex online trade networks where Bitcoins are bartered or traded for favors or other types of fiat currency.
For some forward thinking individuals, Bitcoin has proved to be an excellent equity investment. People who bought Bitcoins at much lower rates have been able to short Bitcoins and sell them for tens of thousands of dollars. In fact, one Bitcoin is now worth around $925.
Perhaps the biggest reason Bitcoins have value is that the currency is decentralized. Because no one government is creating or assigning a value to Bitcoin, governments have so far been unable to tax or monitor how Bitcoins are being traded. Similarly, there is a cap on how many Bitcoins can be made. This means that Bitcoin should be able to withstand devaluation or inflation.
How Bitcoin Benefits Online Gamblers
As Bitcoin becomes more popular in the online gambling world, there are several benefits to using Bitcoins at your favorite computer-based casino. As any digital gambler will tell you, one of the most frustrating aspects of online gambling with regular currency is that digital transactions can be extremely time consuming and expensive.
Depending on the financial institution, banks often tax online transactions. In other cases, banks or credit unions can place a hold on money that is being transferred digitally.
One of the main advantages to using Bitcoin at an online casino is that a Bitcoin transaction can be processed instantly. The gambler does not need to worry about costly transaction fees or time consuming wire transfers. Transferring Bitcoins can be done instantaneously.
Another huge benefit of using a cryptocurrency like Bitcoin at a digital casino is that a bank cannot track the gambler’s winnings. This means that the gamer’s earnings are not known by his or her financial institution, making online gambling a much more private affair.