We need a currency for transactions, and each country has its own currency to enable its people to transact uniformly. Currency is deeply interrelated to financial institutions – they help carry out currency transactions of all kinds, and charge a fee for making them happen. One currency that does not fall in this standard category is the Bitcoin.
What is Bitcoin?
Bitcoin is a new form of currency; it is a digital currency and payment system.
- It is also known as cryptocurrency.
- Bitcoin is not a physical currency; you don’t get printed paper notes of Bitcoin.
- It is created electronically and exists in virtual space.
- The components that go into its creation are mainly two:
- Computer software
- It is not controlled by financial institutions and government.
More about Bitcoin
The word Bitcoin is actually a compound word whose components give a clue of what it is about: bit and coin.
- Bitcoin was first created by Satoshi Nakamoto.
- One of the things about it is the anonymity quotient: till date we do not know if Satoshi Nakamoto was a person/software developer or an alias used by a group of people.
- It made its way to an e-mail list on 31st October 2008.
- The world saw it as open-source software a few months later, in 2009.
- Bitcoin functions in a peer-to-peer (P2P) environment.
- It is created by a process called mining that uses computers within a network.
- Other users can:
- Buy Bitcoins using regular currency at the given exchange rate.
- Exchange them for goods or services.
Bitcoin is Different from Regular Currency
Bitcoin is in its primary function like any other currency. It helps people transact, though only digitally. However, where it differs from other currencies is in its characteristics.
- Unlike other currency that is centralized, Bitcoin has a decentralized form of existence.
- It is not controlled by any organization, some organizations merely facilitate its use.
- Because there is no institution controlling it, there are usually no fees attached to its use in transactions.
Even though there is no government regulation relating to Bitcoins, there are a few things to know.
- You cannot have an infinite number of Bitcoins.
- The maximum number of Bitcoins that can be mined is 21 million.
- This is laid down in the rules that govern the usage and functioning of Bitcoins – the Bitcoin protocol.
- You can split a Bitcoin into smaller units.
- MilliBitcoin (0.001 Bitcoin) or mBTC
- MicroBitcoin (0.000001 Bitcoin) or µBTC
- Satoshi or 0.00000001 Bitcoin (one hundred millionth of a Bitcoin), the smallest denomination in a Bitcoin.
Advantages of Using Bitcoin
There are numerous advantages to using Bitcoins.
- Their transfer into and out of your casino account happens instantly.
- Some casinos offer special bonuses for making payments in Bitcoins.
- Bitcoin casinos accepting only Bitcoin currencies offer some games that you don’t get at regular casinos.
- The user’s identity remains anonymous and you do not have to provide data to authenticate a transaction into your casino account.
- Any player from anywhere across the world can play at an online casino if he opts to pay in Bitcoins.
- There are no vendor fees, like credit card fees or fees charged by e-wallets when you use Bitcoin to transact at your casino account.