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What is Bitcoin?
Bitcoin is an open software, released in the year 2009, and is considered as the world’s first Cryptocurrency and is nothing but a digital currency that only exists electronically.
Bitcoin is decentralized, there is no supreme power or central authority to control the circulation of bitcoin. but, this platform is far from anarchy.
The entire process is simple and perfectly organized – Bitcoin users can make transfers through peer-to-peer network. All these transactions are noted on Blockchain, its a huge ledger. This helps in recording each and every bitcoin transaction.
The blocks in Blockchain is developed using a data structure which is based on encrypted Merkle Trees. This helps in identifying fraud and corrupted files. When a single file is corrupted in a chain, Blockchain prevents the damage of rest of the files in that particular ledger.
Bitcoin’s Blockchain is responsible for handling how many bitcoins are generated and where are they developed, than relying on Governments for creating new currency. Also, it has a track of where bitcoins are and make sure all the transactions are effective and accurate.
As of now, the number of bitcoins generated is 17 million, and the supply of bitcoins is not controlled by any government, the meaning is the supply is controlled by the design itself.
In recent years bitcoin has generated a great deal of attention across the globe. This first decentralized digital currency that is solely present in the digital domain has grabbed many eyeballs with its super functionality.
It is the first peer-to-peer payment network that is powered by its users and is not directly governed by the bitcoin gambling laws that cover the traditional forms of currencies or the fiat currencies or the traditional payment channels.
As an innovative payment solution and as the pioneer of digital currency, bitcoins has ushered in a revolutionary system that is faster, cheaper and anonymous. Inspite of its uncertain future, bitcoin is an interesting phenomenon that is worth describing.
Bitcoin is a virtual currency that is meant to be a medium of exchange. This implies that there’s nothing physical about Bitcoin that you can touch and feel.
Bitcoins have no physical embodiment; they are only rows of transactions and balances. When you “own” Bitcoin it means you own the right to access the record of a specific bitcoin address in the public ledger or the blockchain and send funds from it to a different address.
All bitcoin transaction starting from its inception are verified and executed via the network of users who are the most integral part of the bitcoin system by using the blockchain technology which is also referred to as a distributed, public, virtual ledger that records every single bitcoin transaction.
Bitcoin is the first cryptocurrency i.e. a virtual currency that is secured by the state of the art cryptography. Bitcoin robust yet easily accessible technological system opens up digital commerce to the global population especially to those who are deprived of any credible financial infrastructure.
It is to be noted that unlike the fiat currencies, there is a finite number of bitcoin that is available for use. For bitcoin, there will be only 21 millions of them.
Women in Cryptocurrency?
The following infographic is all about the top 8 women in Cryptocurrency.
- Joyce Kim
- Perianne Boring
- Amber Baldet
- Jinglan Wang
- Jen Greyson
- Fahima Anwar
- Meltem Demirors
- Raine Revere
Please add the source when you use this infographic on your website, Source – MrBTC.org
A Complete Bitcoin Guide: Index
- Who Invented Bitcoin?
- Where Can I Find Bitcoins?
- How to Buy Bitcoin?
- How Can I Store My Bitcoins?
- What Are The Transactional Properties of Bitcoin?
- What is Bitcoin Mining?
- Why Use Bitcoin?
- How do Bitcoins Work?
- Important Bitcoin Terms:
- What Are The Pros and Cons of Bitcoins?
- What Is Bitcoin Fork?
- What Are The Uses of Bitcoin?
- Is Bitcoin Legal in USA?
- The Future of Bitcoin
- The Role of Bitcoin in Online Gambling Industry?
- What Is A Bitcoin Casino?
- Is Bitcoin Gambling Legal in USA?
- Is Bitcoin Gambling Legal?
- How Does A Bitcoin Casino Works
- How To Gamble With Bitcoins
- Advantage and Disadvantages of Bitcoin Gambling
- Popular Bitcoin Casino Games
- Bonuses And Promotions At Bitcoin Casinos
- How To Make Deposits and Withdrawals At Bitcoin Casinos
- Future of Bitcoin Casinos
(1) Who invented Bitcoin?
Bitcoin is the first established cryptocurrency that was created in 2009 by an anonymous individual or group, named Satoshi Nakamoto. The goal was to start a new electronic cash system which was decentralized and hence free from the control of a central authority or server.
The first details of how a bitcoin would work were described in a whitepaper published by Satoshi Nakamoto at an online cryptography forum in 2008. It was marked as a ‘peer to peer electronic cash transfer system’.
The white paper also successfully attempted to portray how the different parts of the bitcoin protocol will work and can be kept secure.
Other digital tokens or cryptocurrencies have imitated the basic idea of Bitcoin its blockchain to address perceived problems with new blockchains.
The first release of bitcoin was version 0.1 that was written by Satoshi Nakamoto. The hard coded genesis block is the very first block in the bitcoin blockchain. According to Satoshi anyone could download the source code and run it to join the bitcoin network.
(2) Where can I find Bitcoin?
Bitcoin being a decentralized cryptocurrrency can’t be found in any places that deal with traditional money. Hence in order to procure your first bitcoins one should check out these four places that are listed below:
Cryptocurrency exchanges are best place to exchange your regular fiat currency for bitcoins. These exchanges are online places that accept payment in traditional money for the corresponding amount of bitcoin against it. Coinbase is one of the reputed cryptocurrency exchanges from where one can acquire his first bitcoins.
Next there are bitcoin ATMs at many places where you can exchange your fiat currency for corresponding amount of bitcoins via a money vending machine that is similar in function to a general ATM machine.
You can directly acquire bitcoins from person primarily from any classified community against regular cuurency. Here you are trading your bitcoin for cash.
One can also obtain bitcoin by selling any products or services for bitcoins.
(3) How to buy Bitcoin?
The following five things are absolutely necessary to be sorted before buying bitcoins:
- Bitcoin address-this is a represented by a string of alpha numeric character that allows you to receive any bitcoin payment. This is known as ‘public key’. It is the address where the bitcoins are directed.
- Bitcoin wallet – it is a secure place like bank account to store the bitcoin that are obtained. But this wallet needs to be arranged before acquiring the bitcoins.
- Bitcoin exchange-it is the online cryptocurrency marketplace where cash can be exchanged for bitcoins
- Payment method-this includes debit or credit cards that will enable the payment when you purchase bitcoins online.
- Form of identity-it includes any valid identity document.
Now let’s take a look at the step by step guide to buy bitcoins:
- First step is to finalize a credible cryptocurrency exchange from where you intend to purchase bitcoins. Coinbase is one of the most reputed online sites for buying and selling cryptocurrencies.
- Before signing up you need to have a bitcoin wallet ready. These can be downloaded prior to the purchase or they are also provided by the exchange itself.
- Once you have the wallet, you have to pay for the corresponding amount of bitcoin at the exchange using traditional payment method such as credit card, bank transfer or debit card
- Once the payment is processed, the corresponding amount of bitcoins is transferred in the wallet.
One should always remember to transfer the bitcoins from the exchange’s wallet to more secure wallet because exchange wallets are vulnerable to hacks as they are not the primary services of the exchanges.
Technically speaking, the wallets, don’t store bitcoins instead they store the ‘private key’ that is similar to your bank account password that is guarded with ultimate security features.
(4) Where can I store my Bitcoin?
Bitcoins are stored in special wallets that are somewhat similar to bank accounts that hold your funds. Before obtaining any bitcoin, you need a place or a wallet to store them.
Rather than actually holding your bitcoin, it holds the private key that allows you to access your bitcoin address (which is also your public key) so that you can transfer funds.
Well designed wallet software makes using bitcoin more convenient and intuitive. It usually holds several private keys.
Wallets can either be present on your computer and/or mobile device, on a physical storage gadget, or even on a piece of paper. Here we’ll briefly look at the different types.
Electronic wallet is either downloaded software, or is a secure space for the bitcoin address that is hosted in the cloud. The former is simply a formatted file that resides on your computer or device and facilitates transactions.
Cloud based wallets tend to have a more user-friendly interface, but you will have to trust a third party with your private keys.
On installing a wallet directly on your computer, you get the privilege to control your keys. Most of them have relatively easy configuration, and are free. The only major disadvantage is that they require frequent maintenance in the form of backups.
If your computer gets stolen or corrupted and your private keys are not also stored elsewhere other than the system, you lose your bitcoin.
They also require greater security features because if your computer is hacked and the hacker gets a hold of your private keys, he also gets hold of your bitcoin.
The Bitcoin Core protocol the original software wallet, the program that runs the bitcoin network..
Currently most of the wallets in use are “light” wallets or a SPV (Simplified Payment Verification) wallet, which doesn’t download the entire ledger but sync to the real thing.
Online (or cloud-based) wallets offer greater convenience than their counterpart for you can access your bitcoin from any device if you have the right passwords.
It is mostly free, easy to set up and come with desktop and mobile apps which make it easy to send and receive bitcoin.
With your private keys stored in the cloud, the disadvantage of online wallet lies in its vulnerable security feature as you have to trust the host’s security features, and that it won’t vanish with your money or close down and deny you access.
Mobile wallets are special apps for your smartphone to store bitcoins and are especially useful if you want to pay for something with bitcoin in shops, or if you want to transfer funds while on the move.
All the online wallets and most of the desktop ones mentioned above have mobile versions.
Hardware wallets are small physical devices that are intermittently connected to the web to enable bitcoin transactions.
They are the most secure as being generally offline, they are seldom hackable. But they do stand the chance of being stolen.
Paper wallets are the simplest of all the wallets; these are pieces of paper on which the private and public keys of a bitcoin address are printed stored safely for use when required.
They are ideal for the long-term storage of bitcoin. These wallets are more secure because being away from virtual attacks as they’re not connected to a network. They are, however, easier to lose especially from fire and water.
Many bitcoin investors use a hybrid approach while choosing wallets for their bitcoin funds. They hold a substantial amount of long term bitcoin fund offline, while storing the smaller liquidity in a mobile wallet account.
Your choice of wallet will depend on your bitcoin investment strategy, and your ease with technology
Whatever option you go for, one should be very cagey while dealing with the storage of bitcoins.
(5) What are the Transactional Properties of Bitcoin?
As bitcoin aims to democratize technology with its incredible technological mechanism, let’s see the transaction properties that makes this pioneer of cyptocurrency such a viable means of exchange.
- Irreversible:Once the transaction is confirmed in the bitcoin network, it can‘t be reversed by anybody.
- Pseudonymous: Neither transactions or accounts reveal the real world identities. While it is usually possible to analyze the transaction flow, it is not necessarily possible to track the real world identity of users with those addresses.
- Fast and global: Transaction is instantly relayed across the bitcoin network and is confirmed within a couple of minutes. Since they happen across a global network of computers they are completely detached from your physical location.
- Secure:Bitcoin funds are secured in a public key cryptography system. Only the owner of the private key can transfer the bitcoin fund.
- Permission-less: You don‘t have to ask anybody for any kind of permission to transact with bitcoin. Being a user friendly software programme, everybody can download it for free. After you install it, you can receive and send Bitcoins as per your will and needs without the interference of any gatekeeper.
(6) What is Bitcoin Mining?
The process of creating valid Bitcoin blocks which requires demonstrating proof of work is known as mining. Hence the miners are devices that mine or people who own those devices.
In reality, Bitcoin “miners” are computer programs that run on very specialized hardware that automates the process of securing the network. To sum up, the mining software
- Collects all the transactions in the network
- Validates them, and rejects the conflicting ones
- Packs them into large bundles called blocks
- Computes cryptographic hashes over and over again until if finds the suitable one
- Then submits the block to the network, appending it to the block chain and getting rewarded in return.
The mining process perhaps is the most radical innovation of the Bitcoin. In short, people and organizations can use computers to solve immensely complicated mathematical equations.
Upon solving the equation, a “block” is created and in exchange of which the miner is rewarded with a pre determined amount of bitcoin generated by the Bitcoin network.
Every four years the amount of the reward is reduced by half. This will eventually keep declining because the amount of bitcoin is limited.
With the rising popularity of bitcoin, the electricity costs and processing power requirements continues to increase.
Soon hardware experts are coming up with field-programmable gate-arrays (FPGAs) that are essentially custom built hardware created specifically for mining Bitcoins.
They feature ample power but consume low amounts of energy as compared to their predecessors.
However, FPGA’s are quickly becoming inadequate and eventually computer hardware companies began producing exclusive BitCoin mining specific chips that are known as ASICs
One of the most important functions of Bitcoin mining is that it assigns an actual value to the currency. Currently, most currencies are not backed by any gold or silver.
Not only that, but Central Banks can create new money at will. Most currencies only have value because we believe they do.
Bitcoin mining ensures that coins must actually be created through a process that requires effort and input, whereas Central Banks can simply print as much money as they want.
(7) Why use Bitcoin?
Bitcoin is often considered as the future of the monetary system due to a variety of reasons, some of which are listed below.
It’s decentralized and restores the power back to the people. Introduced just a year after the 2008 financial crises, Bitcoin has attracted many proponents who found the current financial system as unsustainable.
It instilled some kind of confidence in the hearts of those who were very much sceptical about the government or the financial institutions.
Therefore it is not a matter of surprise that there is a huge community of enthusiasts who are actively building, buying, working and innovating in the cryptocurrency world.
The unique selling point of bitcoin is the concept that one could effortlessly carry out millions or billions of dollars of Bitcoin transaction across borders, pay for anything at any time, and don’t have to anxious about any bank related delay or impediment.
In case of bitcoins, personal information is left out of the transactions. As Bitcoin payments don’t necessarily need to be tied to one’s personal information, users aren’t exposed to any identity theft, which is a constant threat in case of traditional financial institutions. Bitcoin can also be backed up in special digital wallets and they are also encrypted to ensure the security of your funds.
Low Transaction Fees. Banks and companies like PayPal charge a good amount of money to send and receive money while bitcoin dismisses nearly 2.5% of “transaction fee” and replaces it with only a fraction of that.
The Immutable Ledger. Bitcoin’s blockchain which is its public ledger is completely objective. People have began to trust the technology and consider it to be fair because it is based on pure mathematics and computer science instead of being plagued by human error and corruption of questionable politicians.
(8) How do Bitcoins work?
Bitcoin’s ruthless verification process is one of its most appealing features because it hugely minimizes the risk of fraud.
Since Bitcoin is a decentralized structure, volunteers—referred to as “miners”—constantly verify and update the blockchain that contains data related to each and every bitcoin transaction.
Once a specific amount of transaction is bundled up into a block and is verified, the block is appended to the blockchain and the transaction gets completed.
So what is “Mining”?
Instead of a single central server verifying every transaction, essentially every other computer in the network verifies each transaction.
Miners are presented with a complex mathematical problem. They compete against each other to solve the math problem first. The first one to present the solution adds the verified block of transactions to the ledger.
The completion of the mathematical problem is the proof that a minimum amount of energy was spent to get a correct answer. This process is known as Proof of Work.
Bitcoin mining is carried out by high end computer hardware and not by any human being. These machines create the blocks, add them to the blockchain and solve the complex crypto graphical problem generated by the system to complete the process of mining. The successful miners are duly compensated with a pre-decided amount of bitcoins.
As per the Bitcoin’s programming, the reward is designed to change over time, and the block reward becomes half about every four years. The current reward assigned to the miners for each new block of verified transactions is about 12.5 bitcoins.
The mining processes have become increasingly sophisticated with the outstanding technological advancement, and there are number of best bitcoin mining sites, pick the one that is according to your requirement. The most popular method uses ASICS–Application-Specific Integrated Circuits. ASICS are hardware systems similar to CPU computers that are built solely for mining bitcoins.
Bitcoin mining operations consumes a lot of effort and power thus it involves a lot of capital investment and the sheer amount of competition in the present scenario makes it difficult for newcomers to enter the race and make profit.
A new miner would not only need to have adequate computing power and expertise, but would also need the extensive amount of capital necessary to fund the operations.
(9) Important Bitcoin Terms
Altcoins: All other cryptocurrencies except Bitcoin are altcoins.
Examples: Ethereum, Litecoin, Dogecoin, etc.
Bit: A sub-unit of bitcoinis called bit. 1 bitcoin (BTC) = 1,000,000 bits.
Note: You can always buy and sell using money that is less than one bitcoin.
Bitcoin: The term Bitcoin with a capital B represents the complete ecosystem of Bitcoin which includes the technology, the community, the protocol, and the software.
bitcoin: The term bitcoin with small b describes the unit of currency.
XBT and BTC: These are the common abbreviations for bitcoin.
Note: There isn’t much difference between these two abbreviations.
Confirmation: When a transaction happens in the bitcoin network, the blockchain confirms the transaction’s validity. The confirmation is done by “miners” which are computer hardware that carry out the complex processes.
Note: During this process, there might be multiple confirmations & you should wait for at least 2-3 confirmations before calling a transaction “successful”.
Mining: The process of computer hardware performing complex mathematical calculations for the Bitcoin network to confirm transaction and enhance the security of the system. Users who run these computers or rent resources for mining are called miner.
(10) What are the pros and Cons of Bitcoins?
Bitcoin is the most popular and the first-ever introduced cryptocurrency which was created in 2009 as open source software by the pseudonym Satoshi Nakamoto.
It is a peer-to-peer version of electronic fund that allows online payments to be sent directly from one party to another without passing through any financial institution.
Although there are more than a thousand cryptocurrencies in use today, bitcoin is the most widely used cryptocurrency that is equivalent in some of the purpose of traditional, fiat currencies.
Let’s discuss the pros and cons of Bitcoin for better clarity about this medium of exchange.
Bitcoin has greater liquidity as compared to its peer
This unique feature allows users to retain their inherent value while converting bitcoin to fiat currencies like the US Dollar and Euro.
Bitcoin has full acceptance and popularity among the people
Hundreds of merchants have started accepting Bitcoin payments. People are getting more and more inclined towards Bitcoin more than the other cryptocurrencies.
Bitcoin makes virtual transactions easier than regular currencies
Bitcoin operates over the blockchain technology, which is decentralized in nature. There isn’t any transaction fees required nor does one have any red tape to navigate, as is the case with credit card payments, international money transfers and ATM cash withdrawals.
While most of the cryptocurrencies don’t have to face any kind of international red tapes, cross-border Bitcoin transactions are easier simply because it is more popular around the world.
Lower transaction fees
Compared to other third party virtual transaction mediums such as PayPal or credit card payments, Bitcoin comes with a minimal transaction fee. Though the fee is variable, seldom does a BTC transaction cost more than 1% of the value being transacted.
Bitcoin’s privacy and anonymity in relative to traditional currencies
When you spend your money using credit cards or any other online transaction medium, the private authorities or the banking authorities might track the records for any reference.
In case of Bitcoin transactions, the users will know the public address but they can’t actually identify the individual user.
Bitcoin doesn’t depend on creators or political agents
Since Bitcoin isn’t created by any state entity or any governmental organization, it is independent of any political interference.
Scarcity makes bitcoin more valuable. There are only 21 million bitcoins, out of which 17 million has already been mined. Hence bitcoin’s limited nature makes it more precious like scarce metals.
The major problem with Bitcoin is its transactions speed which is lower as compared to other cryptocurrencies like Ripple, Ethereum etc.
As of now, Bitcoin can process 6-7 transactions per second as compared to centralized payment networks like Visa which does 2000 transactions in a second.
Dark marketplaces are working towards tarnishing its image
Bitcoins remains as a lucrative medium for criminals to utilize funds for illegal activities in spite of high visibility prosecutions of the offenders. If such shady activities continue, the system might face marginalization.
Bitcoin is susceptible to price swings
Lately bitcoin price has been very volatile. Over a short period of time its value has risen exponentially.
Once the private key is lost, its lost forever
If you forget the wallet key, your entire money will be lost. By no means can you get it back. It is because the private key or the password only known to the wallet holder.
Furthermore its decentralized nature makes it impossible to arbitrate disputes between users and redress their grievances. Some cryptocurrencies like Ripple do have charge-back or refund function.
Bitcoin faces the challenge of being replaced by potential cryptocurrencies
Every now and then many cryptocurrencies are getting created with newer and advanced features. Some of them utilize the “smart contract” systems to make the providers accountable for their promises.
Every cryptocurrency comes with its own pros and cons. But that doesn’t dent their potential. As the experts have predicted, the cryptocurrency market is going to take over pretty soon.
The market is presently dominated by ‘Bitcoin’ whose impact is way higher than its peers. Whenever it comes to investment, there is clearly a certain amount of risk associated with it even though they are heralded as the most revolutionary payment solutions.
(11) What is Bitcoin Fork?
Lately a lot of talks are going on around the bitcoin fork which is a technical event that occurs when diverse participants in the bitcoin network fail to agree on common rules.
At the basic level, a fork occurs when a blockchain diverges into two potentially sustainable paths-one that relates to the networks transaction history and the other that decides on new rules in deciding what makes a transaction valid. Those who use bitcoin have to show support for one or the other choice.
A fork is a technical term that is used by developers working on open source projects. It basically refers to a “software update”.
Hence every time you update a program on your phone or computer you fork out from the older version. Bitcoin has introduced two new fork concepts:
Hard fork – Hard fork refers to a mandatory software update that conflicts with the older version. The bitcoin program won’t run if you don’t update it.
For example, when a critical bug is found in the system that allows people to exploit the software, everyone is required to update their program in order to continue using it. If you don’t update it, you can’t use the program. Also, a hard fork once created can’t be reversed.
Soft fork – A soft fork refers to the software update that doesn’t conflict with the existing software. Moreover it isn’t mandatory and allows the network to accept the new features implemented on the go.
While a soft fork is occurs, even computers running the old program will still be able to use the program without any hindrance. If the soft fork doesn’t work out, has bugs or people don’t adopt it – it’s can be completely reversed and you can go back to the older version
Most programs you use today are controlled by a single entity. So whenever they want to “fork” from their original program they issue an update in the form of a soft fork which if not updated might not work.
(12) What are the uses of Bitcoin?
Bitcoin was basically invented as an alternative, decentralized payment method. Unlike international bank transfers at the time, it was a low-cost and almost instantaneous medium of exchange. An added benefit of bitcoin for merchants was that it was irreversible thus it removed the threat of expensive charge-backs. Let’s illustrate some primary uses of bitcoin as concluded from their use cases.
In some parts of the world, bitcoin serves as an effective, efficient and cheaper means to transfer money across borders hence several remittance startups are using this feature for their advantage.
A number of large and small retailers now accept bitcoin as a form of payment.
Many individuals are finding it comfortable holding a part of their wealth in bitcoin as nobody can confiscate it or can take a cut for storing it.
Recently bitcoin seems to have assumed the role of investment asset due to the potential gains from price appreciation. More and more traders, institutional investors and small savers are waking up to the gains.
Individuals who wish to support causes whose funds are curtailed by the government or major organizations use bitcoin for the purpose. In addition, these donations are anonymous hence they don’t affect their professional or personal life.
Bitcoin payment are used in the tours and travels industries for booking hotels and utilising other services.
According to some sources, bitcoin is increasingly being used for money laundering by anti social element. Bitcoins are seen as an ideal form of payment when purchasing illegal goods.
Since bitcoin is a decentralized form of payment, it is not subjected to any government’s regulations. This allows enthusiasts from all over the world to gamble online using bitcoin.
(13) Is Bitcoin Legal in USA?
Bitcoin exists only on the Internet, usually in a digital wallet, which is software that stores relevant information such as the private security key that enables transactions. Digital ledgers known as blockchains are used to keep track of the existence of bitcoin.
Bitcoins can be directly send or received from anyone who has a bitcoin address via the so-called peer-to-peer transaction module. It is also traded across various exchanges throughout the world, which is how its value is established.
Bitcoin casino usa legal, It is legal to use bitcoin in the United States, and payments are subject to the same taxes and reporting requirements as any other fiat currency.
The question of legality arises as the Bitcoin platform introduces a brand new paradigm that is far away from the traditional regulators and regulations that govern fiat currency.
Bitcoin exists in a deregulated marketplace; there is no centralized issuing authority nor is there any means to track back to the company or individual who created the bitcoin. There is no detailed personal information required to open a bitcoin account or to make a payment with the account as is the case with a bank account.
The semi-anonymity part of the bitcoin is another cause for concern. Even though every single transaction is recorded in the Blockchain, users can stay almost anonymous, as those records only contain the public keys and the amount of funds transferred.
As far as taxation is concerned, the government views virtual currencies as property for federal tax purposes, similar to stocks and bonds. The federal tax law states that purchasers and/or sellers must also treat it as such.
As Bitcoin becomes more and more mainstream, tax authorities, law enforcement agencies and bitcoin gambling legality regulators all over the world are trying to fully acquaint themselves with the concept of cryptocurrency and its ramifications, and also with the fact that how exactly it ought to fit into existing regulatory and legal frameworks.
Bitcoin payments in the U.S. are subjected to the same anti-money laundering regulations that apply to transaction in traditional or fiat currencies processed by banks and other financial institutions. Moreover, the anonymity of bitcoin transactions makes it far easier to flout the rules.
The former chairman of the Federal Reserve, Ben Bernanke, has expressed his concern that terrorists may use bitcoin because of its anonymity. Drug traffickers are known to use it for clandestinely carrying out their business. The best-known example was the Silk Road market case where all the transaction was done via bitcoin.
The FBI eventually shut it down in October 2013, and its founder, Ross William Ulbricht, is serving multiple life sentences. However, numerous other dark Web bitcoin-based markets have reportedly sprouted in recent years.
Is Buying Bitcoin Legal?
The U.S. Treasury Department’s Financial Crimes Enforcement Network reports that as of 2013, using Bitcoin to purchase well-natured goods and services is not illegal. It was classified as a convertible decentralized digital currency.
They have also issued guidance that states that those who obtain units of this cryptocurrency and use it to purchase goods are not considered money transmitters and are operating within the law.
Bitcoin is accepted as a form of payment on several major and minor online marketplaces. Many shops and restaurants all over the U.S. accept BTC payments.
According to the same guidance, investing in cryptocurrency is also considered to be legal. Many regulated US-based cryptocurrency exchanges comply with the Anti-Money Laundering and Know Your Customer policies.
One can always buy BTC at one of the exchanges and those who wish to trade and invest in it have to verify their ID and connect an existing bank account.
It’s legal for businesses, both big and small, to accept Bitcoin payments and they are also required to pay taxes on income received through BTC.
Bitcoin has been classified as a convertible virtual currency, which implies that accepting it as a form of payment is exactly the same as accepting cash, gold or gift cards.
The U.S. Securities and Exchange Commission (SEC) has warned potential investors that both fraudsters and promoters of high-risk investment schemes may target bitcoin users and rob them of all their bitcoin funds.
When it comes to taxation, the IRS views cryptocurrencies as property for federal tax purposes, similar to stocks and bonds, and federal tax law states that purchasers and/or sellers must treat it as such.
Is Bitcoin Mining Legal in USA?
In the U.S., crypto miners legally carry out mining new coins. There Virtual currencies are classified as digital commodities hence only capital gains should be reported.
As long as you keep them, there is no obligation to report but when you exchange, or spend them, the gains must be reported.
The FinCEN guidance dictates that users creating units of Bitcoins and exchanging them for fiat currency can be considered money transmitters and might be subject to special laws and regulations that cover those types of activities.
Is Bitcoin Trading Legal?
Securities and Exchange Commission (SEC)
At the federal level, the Securities and Exchange Commission focuses on the use of blockchain assets as securities. They assess whether or not certain Bitcoin investment funds should be sold to the public, and whether or not a certain offering is fraudulent.
Whether BTC should be treated as a security depends on the particular transaction, but the SEC has stated that any firm using Blockchain technology to trade securities would have to register as an exchange, Alternative Trading System (ATS) or a broker/dealer.
Commodities Futures Trading Commission (CFTC)
The Commodities Futures Trading Commission (CFTC) has a greater say in crypto regulation as bitcoin has been classified as a “commodity.” It is yet to draw up comprehensive digital currency regulations.
Presently it is focusing on monitoring the nascent futures market. It has also filed charges of fraud, misappropriation and issuing false account statements in connection with solicited investments in BTC in several crypto-related schemes.
Uniform Law Commission
The Uniform Law Commission, a non-profit association that intends to bring clarity and cohesion to state legislation, has drafted the Uniform Regulation of Virtual Currency Business Act.
The Act aims to illustrate which virtual currency activities are money transmission businesses, and what type of license they would require.
The New York State Department of Financial Services (NYDFS) has come up with set of regulations regarding BTC transactions which is known as BitLicense, for Bitcoin companies operating in New York.
Companies that want to obtain the license will need to appoint a compliance officer for overseeing the firm’s compliance with the regulations.
Moreover, they have to obey all other federal and state laws like Money Transmitter laws, Anti-Money Laundering and Know Your Customer policies that apply to Bitcoin.
Financial Crimes Enforcement Network (FinCEN)
According to FinCEN’s guideline on cryptocurrency, ‘virtual currency,’ is defined as a ‘medium of exchange that operates like a currency in some environments, but does not possess all the attributes of an actual currency.’
It only addressed convertible virtual currency like Bitcoin, that can either act as a substitute for real currency or has an equivalent in existing currency.
The FinCEN’s regulation doesn’t consider users of virtual currency as MSB (Money Serving Business) . This implies that if you obtained BTC to pay for goods or services, you are not subject to MSB registration, reporting and recordkeeping regulations.
Internal Revenue Service (IRS)
According to IRS regulations, purchasing goods and services with cryptocurrency is similar to selling an asset. This means if you spend your coins, it means that you’ve either made a profit or a loss.
You have to keep a record of all your Bitcoin-related transactions in order to comply with IRS regulations.
The U.S. Federal Reserve is very eager about the digital currencies and the technology associated with them. They have published thorough papers on both Bitcoin and Blockchain.
This effort and interest on the part of a financial giant like the Federal Reserve in understanding the concept of Bitcoin speaks volumes about how influential the currency is becoming.
Financial Industry Regulatory Authority (FINRA)
FINRA is a self-regulatory organization for U.S. brokers that are proactive in defining Bitcoin, completing guides and issuing cautions for its clients.
In its report on Distributed Ledger Technology it stated that the widespread use of Blockchain technology could impact the organization’s core business practices.
Office of the Controller of the Currency (OCC)
The office of the U.S. Treasury proposed a possibility of moving ahead with considering applications from FINtech companies to become Special Purpose National Banks (SPNBs) in order to provide companies that intend to be a limited purpose digital banks with a unified federal regulatory regime.
However, this initiative entails some significant political and legal uncertainties surrounding Customer Financial Protection Bureau (CFPB)
The Bureau has issued a consumer warning about Bitcoin pertaining to volatile exchange rates, possible lack of assistance from exchanges in case of lost funds and the threat of hacking and scams.
National Futures Association (NFA)
NFA is an independent self-regulatory body for the U.S. futures market. Every participant in the futures market, including those trading in Bitcoin, is bound to have NFA membership.
Regulation of cryptocurrency varies across the country as there is a huge difference in approach towards the cryptocurrency across individual U.S. states. A study classifies America’s 50 states as either “friendly”, “murky” or “hostile” to BTC and other altcoins based on the laws they entail.
(14) The future of Bitcoin
Bitcoin is a decentralized, digital payment network where bitcoin-the cryptocurrency-is the medium of exchange that allows masses to send and receive funds without a third party intermediary such as bank or any financial institution.
The bitcoin network is not controlled by any single person or group but it is managed by a community of ‘miners’ who uses their computational means to verify and confirm the transactions. They are rewarded with a certain amount of bitcoin for their work and effort.
The technology that drives the bitcoin is known as blockchain. Its format is similar to that of a giant ledger book that is available to all the users. The Blockchain is extremely transparent system as the transactions that are entered in it can’t be changed or reversed.
Bitcoin is most popular cryptocurrency in terms of market capitalization, reputation and real-world usage yet the performance level of its transactions are actually poor.
In fact, there are many other cryptocurrencies that are emerging as faster, cheaper and more scalable medium of exchange than bitcoin.
Inspite of all the interesting and innovative features of the bitcoin, the clouds of speculation still looms over its head. In the world of cryptocurrencies, the prices are so volatile that even after nearly 10 years of being traded, an absolute prediction of their future dynamics seems to be a futile exercise.
While contemplating on the future of bitcoin, we see that its bright prospect depends on few of its important aspects likeimproved technology, future objectives and roadmaps, new partnerships or even regulations.
Some popular price predictions for the year 2020 as suggested by some of the illustrious personalities and organisations dealing with this pioneer cryptocurrency, range from $91,000 to $1 million. Let’s look at some of the predictions made by some biggest names in this business.
- McAfee claims that Bitcoin’s future price will be $1 million in 2020.
- Analyst Tom Lee, on the basis of chart analysis forecasted that bitcoin will reach $91,000 by 2020.
- Bitcoinist’s analysis predicts that its value will reach new all-time highs in 2020, which will be around $20,000.
- According to the CEO of Brave New Coin, a cryptocurrency research organization, bitcoin price will reach new highs of $200,000 by the year 2020.
There has been a steady rise in the adoption rates of bitcoin as more and more people are using the network, the wallets and apps. As more and more people buy and use Bitcoin, its price will of course increase. In fact, in countries such as Japan, there are more than 200,000 stores where you can spend Bitcoin in the real-world.
Essentially, if Bitcoin sees an increase its real-world usage, we could see one of the really positive Bitcoin price prediction 2020 come true.
Although Bitcoin has always been the number one cryptocurrency, it is important to remember that it is facing competition from more than 1,500 different coins in the market.
Many of the altcoin projects have been built on top of other blockchain protocols such as Ethereum and there are also lots of individual blockchain’s too.
Furthermore, various central banks and governments are considering releasing their own digital currencies powered by the blockcain technology, which could pose a direct competition to Bitcoin.
In the long-term, Bitcoin could be either be used more as a store of value, or as a medium of exchange as envisaged by its creator.
(15) The Role of Bitcoin in The Online Gambling Industry?
A lot of businesses in various sectors are waking up to the power of cryptocurrencies, and while some of them remain sceptical about their influence, others are jumping on the bandwagon.
One such sector that is cashing in the advantages of bitcoin and other cryptocurrencies is the gambling industry.
Online casinos have been around for years and have been gaining popularity because it has been offering players more convenient ways of gambling online without any hassle.
Players are spared the trouble of visiting brick and mortar locations to enjoy poker, slot machines, and many other games.
Over the past few years, many blockchain based casinos have emerged while a few existing online casinos have began accepting online transaction using different cryptocurrencies like Bitcoin and Ether.
The use of cryptocurrency in the gambling scenario has opened up world of possibilities both for the casino operators and the players.
As far as online casinos are considered, PayPal has been the most preferred payment method for some time now and that is because of the secure and faster rate of completion of transaction. Withdrawal and deposits have increased as they do not take much time to be processed.
However, despite being a household name in the online gambling business, Pay Pal has some flaws which have led to the inclusion of Bitcoin.
Bitcoin Casino is leading the way in online gambling mainly because they accept bitcoins and altcoins as deposits into accounts and also pay out winnings in the same. Some of them even allow clients to withdraw their winnings in any fiat currency of their choice.
Bitcoin transactions do not have to undergo any form of verification from any third party, which sometimes delay transactions. At online bitcoin casinos us play entails cheaper transaction fees, deposits and withdrawal. They also offer what many casinos can’t provide and that’s anonymity.
It is very important for a well-established casino to have license from a certified authority like the MGA (Malta Gaming Authority).
In fact, every year, online casinos spend millions to impart the highest level of security on their site, as well as fast payouts. The casinos are surely going to attract and retain many players by offering the option of using cryptocurrency to play games on their best bitcoin site, the use of cryptocurrency itself makes things a whole lot easier for casinos in several ways.
First of all, there are no chargebacks associated with digital currency, which means that players need to be careful when making payments because once they process a transaction, there is no going back.
Due to the irreversible nature of bitcoin, they cannot reclaim their money or demand compensation for any transaction. This makes operators’ lives easier since they do not have to waste time dealing with disputes and it also protects them from player fraud.
Second of all, Bitcoin system is very transparent in itself – most of the time bitcoin gambling operates using an algorithm called ‘Provably Fair’, which players should actually look for in order to ensure that the games they are planning to bitbet at are 100% fair. This also establishes the trustworthiness of the online casino.
For the upcoming bitcoin casinos, this is good because it means that they do not actually need to go through the whole process of procuring a gambling license, whereas for already-established casinos operating with proper licensing, this means that they do not need to undergo any extra processes.
The use of bitcoin and other cryptocurrencies by the online casinos has attracted extraordinary returns. Reports suggest that in 2013 just over 50% of all bitcoin transactions were gambling-related.
Moreover, since 2014, approximately 3.7 million BTC has been wagered, equating to nearly $25.8 billion USD. The bitcoin gambling market size is constantly increasing.
It is believed that blockchain and smart contracts can be utilized to create a more socially responsible, sustainable and efficient gambling environment for both the players and gambling providers.
Over the years since its inception, online gambling has developed into a major digital industry primarily due to the agents involved in the business, as well as their constant inclination for improvement, advancement and innovation.
Players are now able to access more stable and secure online casino floor platforms, play a much wider variety of games and pay for it or get a cashout in a much punctual manner.
(16) What is a Bitcoin Casino?
With the stellar rise in the popularity of bitcoin and other cryptocurrencies, bitcoin casinos, that are relatively new to the gambling scene, have emerged in decent numbers aiming to change drastically the landscape of online casinos by offering new gambling experience for players around the world.
The term ‘Bitcoin casino’ refers to any online casino or bitcoin sports betting agency that accepts Bitcoin alongside fiat currency. These casinos offer a tailor-made list of games and services for gambler who seek to transact in Bitcoin.
Apart from the traditional casino fair such as roulette, they also have best bitcoin sportsbook, online lotteries, or spread betting. With the continuous change in technologies and regulations, bitcoin casinos have the potential to realize major increases in user adoption.
Most of the Bitcoin casinos function in a similar manner to their ‘traditional’ counterparts. Most Bitcoin casinos specifically provide new registrations with an in-house wallet, which players can transfer Bitcoins to.
Typically, a user makes an opening ‘bet’ from their wallet, and can either lose or profit on that sum depending on their success in a game. For example, some online casinos have gone to offer huge Bitcoin jackpots’, where users stand chance to win sums in excess of 500 BTC.
Once a game is complete, all the profits are returned to a user’s in-house wallet. From there, a user can transfer it to their private wallet whenever they wish – however, most casinos employ a withdrawal limit to prevent users from cashing out all at once. It is good practice to be fully aware of an online casino’s terms and conditions before playing.
Crypto casino sites had the luxury to offer zero transaction fees with unlimited free daily transaction and have went on to advertise larger jackpots and extensive profits as their operating margins can be significantly lower.
Perhaps the biggest contributing factor to the enduring popularity of Bitcoin exchanges in the gambling scenario is that any user’ s profits or losses are not inherently taxable unless declared to a legal authority.
Arguably, the future of Bitcoin casinos may not strictly stick to Bitcoin only, as newer cryptocurrencies are emerging with far more attractive benefits than bitcoin.
In the following years since Bitcoin’s debut in the currency market, several privacy-focused cryptocurrencies have followed the trail that specifically anonymizes transaction details and the parties involved.
Cryptocurrencies such as Monero or Zcash may someday be widely adopted amongst best bitcoin gambling sites mostly due to their fungibility feature.
Ultimately, other projects – such as Ethereum – may also offer extremely lucrative benefits. Very soon the online casinos may implement smart contracts to govern gambling activities such as deposits or payouts – effectively ‘decentralizing’ some of the administration of day-to-day duties.
(17) Is Bitcoin Gambling Legal in USA?
The current legal framework across most of the usa doesn’t explicitly stipulate betting with bitcoin or other cryptocurrencies is illegal.
To understand whether bitcoin gambling is outlawed or not in US or not lets look at important laws that govern the online gambling scene.
The unlawful internet gambling enforcement act stipulates that banking facilities and credit card companies cannot facilitate transaction related to online gambling. Prior to the year 2006, when the act came into existence, online casino could use the US banking system for their purpose but after that it was no more allowed.
The act forced some big names in the online gambling market to withdraw them from the business. E.g. PokerStars was one such popular operator that was forced to leave the market. Hence to sum it up, use of banking system for gambling purposes is prohibited in US.
Since the cryptocurrency network is a peer to peer decentralized digital payment system, it is not governed or regulated by any government or any central body.
Hence by shifting their focus from conventional payment mode to non traditional payment options like the use of cryptocurrencies, the online casino operators doesn’t flout the law.
Bitcoin gambling from players perspective:
To put it succinctly, no federal legislation deems online gambling illegal for players. Current laws prohibit casinos to accept wager on the territory of bitcoin casino USA but there are no laws that would forbid individuals to place bets.
Hence to circumvent the laws and accept bets without violating any regulations, list of bitcoin only casinos are based out of the US territory. Bitcoin online gambling has three legal statuses in the USA: it is either legal or illegal or it is unlawful.
U.S. citizens residing in Delaware, New Jersey and Nevada are allowed to take part in any gambling activities including the use of bitcoins; these include depositing bitcoin into the casino, betting and withdrawing.
The only state that explicitly prohibits online gambling activities is Washington. State residents are not permitted to use offshore gambling sites, register there and place bets in any currency, whether fiat or digital.
Bitcoin gambling is not considered to be unlawful in most states; however this is a topic of dispute and may eventually lead to some bans or liberalization, so the information in this regard would not reflect the actual legal environment.
It is noteworthy that before registering at any online bitcoin casino you should make sure that the territory you are physically in does not prohibit online gambling.
(18) Bitcoin Gambling Legal?
Online gambling is legal in many parts of the world and most of the top casino operators are intending to make things easier and exciting for the gambling enthusiasts by allowing them to deposit and play their favourite games using traditional currencies as well cryptocurrencies including bitcoin.
In countries where gambling is legal, bitcoin specific online casinos are getting more and more popular solely because of the numerous advantages associated with this decentralized digital currency.
Countries that have legalized gambling have witnessed that the online casinos accept most of the currencies be it fiat or not and they also acknowledge other payment options as well.
But this fact doesn’t ensure that bitcoin is automatically legal because some countries have enforced restrictions and taxes on bitcoin cash-outs.
Interestingly, even at places where gambling is illegal, there are still means to gamble online via websites that are being operated from other countries thanks to the elusive and magical world of internet.
What people like and prefer about the online gambling sites particularly those that allow bitcoin transaction is the benefit of anonymity.
Bitcoin is a decentralized digital medium of exchange or broadly is a decentralized peer to peer payment system which is powered by the highly innovative blockchain technology that ensures that the user’s personal data can’t be traced back to by any means.
This aspect of the pioneer cryptocurrency makes it difficult for authorities to trace the gamblers, which is why regulatory bodies usually impose a penalty on the casino operators rather than on the players.
There are two main areas that primarily influence the legalities surrounding online gambling with Bitcoin and cryptocurrencies in different countries:
- The general legal status of online gambling
- The legal status of bitcoin as a medium of exchange or currency.
If online gambling with fiat currency is deemed legal in any country, then in all probability bitcoin gambling too is legal there. Let’s take a look at few of the countries that has legalised online gambling or more specifically bitcoin gambling.
Australia: It is legal for Australian residents to gamble online, but it is illegal for gambling operators to provide their services from within the country.
This implies that online casinos operating in legal jurisdictions can offer their services to players in Australia. The Australian government is fully supportive of the use of cryptocurrencies.
Canada: Like Australia, Canada also allows its residents to gamble online. However, it prohibits gambling service that is offered by any company that isn’t licensed by a provincial government.
When it comes to the use of Bitcoin, there is no formal ban on its use. Instead Canada was the first country in the world to pass legislation pertaining to Bitcoin as they wanted to insulate the users from any negative ramifications of this speculative currency while allowing the cryptocurrency to flourish.
Toronto and Vancouver are dubbed as the ‘Bitcoin hubs’ for the sheer density of bitcoin ATMs. Hence as far as online gambling with bitcoin is considered, in Canada, you are not subjected to any regulation, unless you are an online gambling vendor or Bitcoin broker.
UK: It is legal to gamble online in the UK, only if the gambling service provider has applied for and has been granted a UK Gambling Commission (UKGC) issued Remote Gaming Permit.
Moreover in August 2016, the UKGC officially granted the UK licensed online casinos permission to accept bitcoin as a deposit and cash out method. Here all the services and goods that involve Bitcoin and other cryptocurrencies are taxed.
France: From the roulette wheel to the original version of baccarat, France has contributed substantially to the birth of several forms of gambling we use today.
In case of USA, online gambling is legally restricted while gambling under federal law is permitted. However, no amount of restriction has slowed down the enthusiasm for gambling online.
Before betting at a particular site, you must confirm whether the site is licensed by the US or not, by ascertaining whether it’s registered on the gaming board’s website, the Unlawful Internet Gambling Enforcement Act (UIGEA).
Then there are some countries that regulate the use of bitcoin and crypto currencies in general. Because gambling is such a popular pastime, it’s not surprising that in countries where it’s banned, or heavily regulated, the demand for gambling with bitcoin is large.
Bangladesh has restricted the use of Bitcoin, by curtailing the use of the currency as payments option. In Bolivia, the central bank has declared the use of bitcoin and other cryptocurrencies illegal. In 2016 the Russian government’s stance on cryptocurrencies shifted as a new law would see Bitcoin regulated as a foreign currency.
As more people use bitcoin to gamble with online, or as payment method for services and goods, the currency continues to grow affecting local and international economies alike. The law enforcing officials struggle to understand how to regulate the use and taxing of bitcoin.
The gambling laws are generally applicable to the operators and casinos while individual players are free to enjoy playing bitcoin casino free btc, as long as you make sure the casino is licensed, credible, and offers great support.
(19) How does a bitcoin casino works?
In the world of online gambling industry some online casinos transact only in bitcoins, while others offer bitcoin as additional currency of transaction, in addition to fiat currencies like USD.
There are numerous online casinos which offer gambling and money based games in bitcoin and other cryptocurrencies. Bitcoin casinos are subjected to local laws. The adoptions of bitcoin transaction by the casinos enable them to offer a wide variety of options for players to bet with bitcoin on either one of the following:
- Casino games
- Gambling games
- Sports based betting
- Online lotteries
- Spread betting
How bitcoin casinos operate?
Innovative yet robust gaming software is the core of any online gambling or gaming business and same holds true for bitcoin casinos too. Most popular bitcoin casinos that have a large user base and hence they run their own gaming software.
Other smaller operators purchase or use rented versions of the software from some of the leading providers, which may be also be customized as per the need.
The software runs the game, with minimal human intervention. It also conducts the games by assuming the virtual role of the table dealer. Due to the digital nature of their business, bitcoin casinos face the challenge of convincing the users about fairness of their operations.
Most of the bitcoin casinos try to establish trust with the players by openly disclosing how their software algorithms work. Rest of the casinos incorporate the gaming software to facilitate the uniqueness of their offering in the casino games.
Why bitcoin casinos are gaining popularity
Players are primarily attracted to the anonymity feature of bitcoin that renders them untraceable. Most of the bitcoin casino sites offer zero transaction fees with unlimited free daily transaction option, whereas in case of traditional currency based casinos.
There are limits to the number of transaction and there is transaction fees imposed. The digital nature of this business allows global access hence players are available in hordes round the clock.
Since best bitcoin games are largely beyond the purview of authorities, many online games have been customized for bitcoin clients. Such variations are not allowed legally in traditional currency based online casinos, and so it is evident why bitcoin casinos are so popular with masses.
Traditional online casinos transacting in traditional currencies have defined regulations in place as payments in case of traditional currencies are traceable to individual players, dealers as well as casinos operators while this is not the case with bitcoin casinos.
Since bitcoin transactions are purely digitized, verification becomes a challenge. A lot of bitcoin casinos need minimal user details (quite often limited to only email and login-name), no age verification, no location check or other details.
Gambling is prohibited in lots of countries across the globe, and bitcoin casinos make it further difficult to regulate and control it at global level.
Although digital currency based systems may be hailed for their advantages, gambling with bitcoin and altcoin is surely a challenge at multiple levels.
Legal aspects of bitcoin casinos
Due to the challenges surrounding the bitcoin payments, running bitcoin casinos is considered illegal in the US. Most of the legally known bitcoin casinos are based outside of the US.
Enthusiastic users from all over the world (including a significant user base from the US) transact on these bitcoin online casino sites anonymously, posing a big challenge for authorities to regulate, control and legalize the transactions.
Lack of open information on such anonymity-based business pose an impediment to gathering the type of data that would be needed to enforce rules.
Casino gambling, whether based on conventional currency transactions or anonymous digital currency transactions, has always been a contentious topic on ethical grounds.
The complexities of bitcoin transactions make matters more challenging. While it is always exciting to get carried away with easy money making options, users must be aware of the legal aspects, challenges and risk areas.
(20) How to gamble with Bitcoins?
Gambling online is risky affair in numerous countries, particularly in the US, where it’s outlawed. This means many enthusiasts looking to gamble with bitcoin might prefer the privacy offered by the digital currency over traditional currencies.
Bitcoin’s effortless transaction feature has simplified the online gambling scene considerably by bringing in some convenience and security features to the gambling sites that weren’t available prior to Bitcoin.
Things are so smooth now that some of the bitcoin specific sites don’t even require you to create an account to start gambling. Moreover, here the offerings range from simple coin flip games, where you have roughly a 50% chance to double or part with your money, to more elaborate games, like poker.
Before using a gambling site, certain things are to be kept in mind. First you should always check its reputation and preferably go for bitcoin casino sites which are provably fair.
While Bitcoin makes many things easier and more secure, it still cannot prevent scammers, so one should be cautious especially with the new gaming sites.
Another important thing to note is that no matter how reliable a gambling site seems to be, never leave your Bitcoins with them any longer than necessary for it is not a wallet.
Last but not the least matter of precaution is the golden advice that you shouldn’t risk more than you are willing to lose. Keep in mind that the house always has an edge in every game.
Apart from the desktop version of the gambling sites, there are many Android and iPhone based gambling sites or applications for smartphone users. Before one begins gambling with Bitcoin online, one needs to purchase Bitcoin or the other digital currencies that are too be used.
Many top bitcoin casinos double as faucets upon registering on their website as they refer or introduce a new player to new game and other co players. There are various ways to acquire free bitcoins online.
The preferred means to procure bitcoins is to buy it from any reputable exchanges like Coinbase or get them in exchange of goods or services or perhaps buy it from a friend owning it. Once you own bitcoins, there are many different ways to gamble online with bitcoin.
Moreover, depending on your location, you must always stay updated with the Bitcoin laws as well as laws for online gambling. Bitcoin casinos do need licenses from regulatory bodies from countries where they operate.
Most of the bitcoin casinos possess such licenses and this ensures that your personal data is not under any risk. It might be a good idea not to convert winnings from best bitcoin gambling online into your local currency if it’s illegal to gamble bitcoin online in your country.
‘Provably fair’ is a vital concept in the realm of online gambling with bitcoins. Bitcoin’s cryptographic hash function enables provably fair gambling.
Provable fairness ensures that non-predictable results are generated during the games and that no party could ever influence the outcome in their favor.
You should always look into how a site is doing in provable fairness and perform your own checks to establish their trustworthiness. One should never gamble on a site by picking the right casino from the available bitcoin site list that doesn’t implement provably fair random rolls.
For example, a simple implementation of provably fair thing works like this: Let’s assume that the game is to bet whether a random number will be either 3 or 4.
Before pressing the start button the site shows a hash value which is the result of the upcoming random number (3 or 4) plus a confidential random string.
After the bet is made, the site shows you the winning number along with the random string. By putting the winning number and the revealed secret string through the hash function, one can check that the result is identical to the hash value that had appeared at the beginning and thus implying that the winning number has not been tampered with after the bet was made.
There could be other tricks employed by the casino hence one should always be aware of the reviews and feedback of past players and the casino reviewing websites.
The deposit and withdrawal in bitcoin do not take much time. For smaller amounts, it is very fast, and almost instant if you have your wallet account ready to use. But, for larger amounts, it may take longer time for deposits and withdrawal. You won’t need a credit card to wager.
Many websites don’t even require any minimum deposit. The smaller units of bitcoins like mBTC etc are used when playing games.
The use of bitcoins, have several advantages over traditional currencies in online gambling. Bitcoin specific gaming sites are very simple to access and are faster.
You can simply sign up with just an email address. Seldom do these transactions require any processing fees.
Bitcoin gambling is legal at all the places where online gambling is legal. There is no separate or concrete Bitcoin gambling legislation available. It is to be noted that despite the illegality of online Bitcoin gambling in the US, many websites allow US players.
Hence to sum it up, there are plenty of reasons to use Bitcoin when it comes to online gambling, such as speed and privacy. Earlier in case of online gambling, many players had to wait days for payouts but with bitcoin it can be instant.
Bitcoin’s cryptographic hash function and its revolutionary blockchain technology enable the bitcoin gambling games to be ‘provably fair’
(21) Advantage and disadvantages of Bitcoin Gambling
With the quick and steady growth in the popularity of bitcoin, it has become a viable digital currency. In fact, it is now widely accepted by a lot of shops, both online and offline for.
However apart from being used in purchasing services and goods, bitcoin is being prolifically used in the gambling industry.
Just like traditional money, bitcoin is effortlessly used for funding casino accounts and playing the favourite games, yet there are a few things that is to be kept in mind if you plan to use this payment method.
There are numerous online casinos across the world that is steadily assimilating bitcoin into their ecosystem primarily due to the multiple beneficial aspect of the cryptocurrency.
Digital currencies such as bitcoin offer a top notch level of privacy and security in comparison to the conventional currencies. Keeping this in mind, we will delve into the pros and cons of using this pioneer digital currency.
The Pros of Using Bitcoin
As mentioned earlier, bitcoin guarantees remarkable privacy because being a decentralized medium of exchange; it is not controlled by any authoritative body that might have access to your personal as well as financial data.
This anonymity is considered crucial for any individual indulging in gambling. Furthermore, players are spared from the burden of additional costs that they would frequently encounter when transacting using credit and debit cards. This makes the process cost effective hence lucrative.
Instant Deposits and Withdrawals
The deposits to online casinos occur instantaneously, whereas, withdrawals may take 2 to 7 days time depending on your banking choice.
But with Bitcoin, gamblers can conduct both deposits and withdrawals in a matter of seconds or minutes.
Due to the fact that there is no country across the globe which has acknowledged Bitcoin as a real bankroll currency, when you transact via this digital currency, one would not incur any additional taxation costs.
This welcoming aspect of bitcoin is a major reason for making the deposits and withdrawals cheap and instant.
The anonymity part associated with this cryptocurrency automatically implies that players residing in jurisdictions with strict gambling regulations can indulge in the excitement freely, without the worrying about these regulations.
The anonymity feature of bitcoin can come in quite handy when it comes to countries in which players incur substantial taxation costs.
Fairness in Gambling
Gambling via Bitcoins does not mean doesn’t take away the benefit of provable fairness in gaming that is the most coveted thing about any online casino.
Subscribing to the popular Bitcoin casinos ensures equality in betting under a provably fair system.
No limits in betting
Bitcoins can be broken down to f 8 decimal places in total. With bitcoin, you no longer have to encounter the hassle of meeting any wagering requirements to withdraw your earnings or attempt to place one last wager against your instincts before retrieving your winnings for you can bet with as little or as much amount of bitcoin as you want.
At regular online gambling platforms, you may see bonuses, especially the welcome deposit ones, offering a 100% best bitcoin casino bonus up to a couple of hundreds of dollars.
However, when the casino accepts Bitcoin, these rewards can range anywhere from 1BTC all the way to 5BTCs. Then there are very generous reload bonuses on offer.
The Cons of Betting With Bitcoin
The anonymity feature of bitcoin may also poses as a disadvantage as it can also be utilized in the masking of the identity of a casino using this currency, including a mobile one.
Therefore, it is essential to conduct your due assessment of the online casino before putting down any deposit, by looking into the company’s location as well as its reviews in online forums.
Yes, the value of a unit of bitcoin may take a positive or a negative role. It is hard to predict that what may be the ramifications in the gambling industry if bitcoin prices plummet.
The acquisition of this currency
The purchase of Bitcoins can prove to be quite a challenge for some. For instance, several exchanges require bettors to provide various forms of verification before permitting them to make a trade thus it may sometimes compromise the anonymity of betting via this currency.
Despite the fact that a group of new casinos transacting with this currency may be legitimate, the unregulated nature of these gaming platforms automatically implies that in a few instances these casinos may lack enough liquidity to stay afloat.
Thus, they may end up closing their service, which means your risk of losing all your invested Bitcoins.
Not always fair gaming
Probably the most significant disadvantage of gambling at Bitcoin casinos is that the games may not be ‘provably fair’ even if the casino itself is fully licensed to operate.
When betting on a regular online casino the risks are not so high as compared to bitcoin casinos where the number of scam is quite high.
(22) Popular Bitcoin Casino Games
Bitcoin casinos offer plethora of games that are tailor made for providing an exuberant gambling experience. Let us take a look at some of the popular games that are offered at these casinos.
Dice is the most popular game of chance where there isn’t any strategy involved. The main purpose is to have the highest possible desired result after rolling the dices.
In the Bitcoin gambling domain, dice games usually revolve around a random number being drawn and the bet being placed whether it is above or below a certain threshold. Often a player can pick high or low to vary his or her bet, or can adjust the winning chances and the resulting potential payout.
This doesn’t require any strategy or insights and can be played in rapid succession. A more elaborate dice game which features more complicated rules, but in the end also comes down to playing a variation of high or low is craps.
Slots are the simplest type of casino game where players are not required to follow any elaborate playing rules while they are set to play thousands of slots alternatives.
Poker and blackjack are the two most prominent card games that are offered by most of the bitcoin specific casinos. Chance and destiny are the two primary elements of this game. Players play bitcoin blackjack against dealers with the aim to reach the score of 21 with the deck of 52 cards.
Poker can either be real bitcoin video poker that is played against other players, or single player variations like bitcoin video poker, which basically allows you to beat the odds with your drawn cards. Players can also find bitcoin poker sites that accept bitcoins from the players.
It is one of the most popular casino games which are widely played all over the world. There are many types of Poker but the general goal to be a winner is to become the owner of the pot.
Online roulette’s experience is like the real casino classic where you place your coins on the table to indicate your bet and a virtual wheel produces the winning number.
Like dice games, roulette is a game of pure chance and there aren’t any strategy to follow. Chips numbered from 0 to 36 are placed on the Roulette table and after the bets are placed and the dealer gives the “No more bets” sign the roulette wheel starts to spin.
Winning numbers will match with the players’ bets and one of them emerges as the winner.
Betting on the outcome of the sporting events using Bitcoin is gaining mileage. Almost every competitive sport has a betting market. Sportsbooks that accept bitcoin as their payment option are increasing everyday and they ensure exciting gaming experience.
Many bitcoin betting sites allow the players not only to bet on the winner but also on the outcome of a game under a certain score or on the point difference between the two sides. The likelihood of the particular outcome determines the possible payout in bitcoin casino sports bet.
In prediction bets players gamble on the outcome of a future event, usually one with two possible results or some kind of deadline for a spec Bingo – History of Bingo goes back to Egypt.
There is no particular strategy required to win the randomly drawn numbers. Player may have one or more cards to follow and match.
There are several lottery types where numbered tickets are followed by the players to match the drawn numbers.
Binary Options: Gamblers prefer this easy-to-play financial trading game that is based on guessing the result or direction on assets, commodities, indices or currency pairs.
It resembles a lottery game where there are cards numbered from 1 to 80. Players pick up numbers up to 20 and try to match the highest number of picks.
As a player, you can either be a “Player“, “Banker” or “Tie“ inthis game. A hand totalling to more than ten, is dropped off while if the hand totals to exactly ten, then it will become baccarat or “0”. The main aim is to be the higher of the two.
There is no strategy required to win the randomly drawn numbers in Bingo as a players may have one or more cards to follow and match.
(23) Bonuses and Promotions at Bitcoin Casinos
Bitcoin casinos offer rich bonuses that appear in different forms. Traditional online casinos also offer numerous bonuses to their customers but Best bitcoin casino list give you the same deals with less the hassle.
Here you can indulge in a wide variety of Bitcoin bonuses, free bitcoins, bitcoin casino usa no deposit bonus and usa bitcoin casino free spins all of which gives your bankroll a much needed boost.
When it comes to playing your favorite Bitcoin casino games, the benefits are numerous like the deposits are instant, cash outs are handled faster, and there isn’t any exorbitant transaction fees involved.
The various kinds of bitcoin casino bonuses are listed below:
Welcome Bonus and Wagering Requirements
You receive the welcome bonus when you join and register for an account at any online gambling site. The welcome bonus or match bonus is like a special treat that’s offered to the maiden Bitcoin casino visitor.
The purpose of such bonus is to encourage you to sign up and explore the world of online games. The welcome bonus package differs from casino to casino.
The standard match bonus is 100% that means if you deposit 0.5 BTC it will double itself and will become a 1BTC bankroll. Whatever amount you deposit at the bitcoin video casino will be doubled or tripled instantly. Most of the New Bitcoin casinos generally give away 100% bonus up to 1,000 mBTC for your first deposit.
Others give more lucrative offers like the massive 100% bonus up to 1 BTC or $100 or €100 on your first time deposit plus 50 free spins.
Bitcoin Casino Free Spins Bonus
The bitcoin casino free spins bonus is a great alternative to the bitcoin casino no deposit bonus 2018 but can be used only to play new slot games. Some casinos will give you up to 50 free spins to celebrate some special thing or for some special promotions. The bitcoin casino free spins 2018 bonus mostly comes along with the casino’s standard bonus package.
Refer a Friend Bitcoin Casino Promo Code
Every time you invite a friend to visit the casino, the casino credits your account with a bonus which is known as the ‘refer-a-friend’ bonus.
You must note that before you can receive this bonus your friend must deposit and play. Some Btc gambling sites impose a limit on the amount of friends you can refer to while others offer unlimited opportunity.
No Deposit Bitcoin Casino Bonus
The Bitcoin no deposit casino bonus is not as popular as the free spins or welcome bonus hence not many bitcoin casino offer it. Unlike the welcome bonus the no deposit bonus can’t be cashed out but it gives you the opportunity to play a popular new slot machine. The standard bitcoin casinos no deposit bonus offer by Best Bitcoin casinos is 10 mBTC.
The reason why the casino operator gives you a no deposit bonus is to give you a cursory idea about the game’s payouts at different coin levels.
If the bonus is 50 mBTC you must roll over 1,500 mBTC or 1.5 BTC before you are allowed to withdraw the cash you’ve won.
If the casino does not offer any such bonus don’t be shy to ask for it, more often than not the operator will be more than happy to oblige because they value your business.
Banking Your Bitcoin Casino Bonuses
Bitcoin casinos like BitStarz offers you to deposit and cash out the bonus funds you’ve won in Bitcoin itself. This is generally not the case with other operators that converts your bitcoins to fiat currencies like USD dollar, Euros or British Pounds.
Depending at the site you’re playing at withdrawals are processed within minutes or 24 hours. The good thing about playing at a Bitcoin Casino is that you don’t need to provide any verification documents.
(24) How to make deposits and withdrawals at Bitcoin Casinos
A Cryptocurrency wallet is the most essential tool that holds the deposit at a crypto-friendly best bitcoin website. Depending on the format and the security levels, different types of crypto wallets are available on the internet for storing the bitcoins or other cryptocurrencies which you can obtain as per your requirement.
After registering with one or more wallets, you need to copy the bitcoin reference code from the casino deposit section and paste this bitcoin casino bonus code on to your wallet’s withdraw part.
Depending on the crypto-currency you prefer to gamble with and the transaction load, it may take a few seconds or few hours for the crypto money to reach your casino account. You don’t have to enter your personal information while depositing.
Some of the btc casino also accepts credit/debit cards and e-wallets. But a bit casino site will require you to deposit only in bitcoin.
For withdrawal too you should have a wallet as the transaction occurs monthly. You can process the withdrawal by copying the bitcoin reference code from your wallet’s ‘Deposit’ section and pasting it into ‘Withdrawal’ section of the casino.
It may take a few minutes to few hours for the amount to be credited into your wallet balance. Once it’s done, you should either use it as it is or convert it to traditional money and transfer it to your bank account.
(25) Future of Bitcoin Casinos
Bitcoin is a decentralized digital currency that has taken the world by storm within almost a decade of its creation by Satoshi Nakamoto. It has grown to become an effective payment system in the current financial structure as well as in the gambling industry.
Even with the availability of the other online payment systems like Pay Pal and Mastercard, bitcoin has garnered a niche user base that is expanding rapidly.
The bitcoin network allows people to make online transaction using bitcoin currency that is secured by cryptography. It is free from any kind of authoritative control hence there are no intermediaries in the Bitcoin ecosystem.
The transaction happens peer to peer across the revolutionary digital network known as blockchain. People love the fact that they can make financial transaction on their own with bitcoins without the interference of any central authority or government body as cryptocurrencies by their very digital nature is free from any control or regulation.
Bitcoin exists as complex code in specially designed storage space known as wallets. Moreover, you can have as many bitcoin addresses or bitcoin wallets as required, and your information will always remain anonymous. As an irreversible and faster method of making payments, bitcoin is expected to do better than many well-established payment systems within the next few years.
Bitcoin is a form of non-cash payment which is boosted by enhanced privacy, payment finality and immediacy. The surge in its popularity is an early testimony to the immense potential of bitcoin to flourish as a regulated and recognized currency.
Since its inception, it has moved ahead to become a popular payment system within the gambling industry. More and more gamblers are using bitcoins and other cryptocurrencies at the betting sites and online casino.
The world of digital currencies and the world of gambling form a great confluence. The benefits offered by Bitcoin and its counterparts isn’t an oversight. There are several top bitcoin gambling sites that accept Bitcoin along with other existing options.
A new report shows that presently, most proceeds come from Bitcoin and altcoins thus implying that providing users with more options (especially bitcoins and altcoins) to gamble with immensely benefits an online casino.
This novel payment method is greatly appreciated by the gambling enthusiasts. Several gambling service providers also seem to be sticking with Bitcoin as there are several benefits for accepting bitcoin as a payment.
Not only the user but the service provider might also receive rewards from exploring the opportunities in this department. In a lucky bitcoin casino, the players are provided with a level of privacy and security which is something that’s been sought for a while now.
Currently, state regulators are not showing much interest in establishing bitcoin as a regulated currency. However, they have acknowledged that the currency can impact the gambling industry positively, provided it’s integrated properly into the gambling scene.
The gambling industry’s attitude towards bitcoin and other cryptocurrencies has been positive lately and this brings hope to bitcoin users that soon in the future, bitcoin currency will become widely accepted, just like other regulated currencies by the gambling industry.
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