For almost a decade, our society has experienced the growth of entirely new, internet-centric currencies that have expanded in value and popularity alongside more traditional economies. These tech-savvy, digital currencies are collectively known as cryptocurrencies, with the most popular being bitcoin.
Over the last few years, bitcoin has become so incredibly prevalent that it’s inspired entirely new sectors and genres within long-established online businesses. Arguably the most successful of these has been bitcoin gambling, which has seen many online casinos and other iGaming franchises adopting bitcoin entirely or alongside older currencies.
What is Bitcoin?
However, before we explore the flourishing world of bitcoin casinos, perhaps it is crucial that we discover what bitcoins themselves are. Created in 2009 by the mysterious Satoshi Nakamoto, bitcoins are the most popular form of digital cryptocurrencies currently available on the internet.
Where traditional currencies are released by banks, bitcoins come from a mathematical, computational puzzle that releases new “blocks” to be added to the “blockchain” whenever it is solved. Attempting to solve the puzzle is called “mining”, thus those who do it are named “miners”. When a block is uncovered, a reward is allocated in the form of bitcoins. In 2009, the amount awarded was 50 bitcoins, however, this has since decreased and solving the puzzles has become increasingly difficult.
According to Investopedia, if the difficulty level of mining started at 1.0 back in 2009, it had increased to over 4.24 billion by April 2017. This not only means that bitcoins are released far less frequently now but, also, that an average desktop computer can no longer deal with the mining process and instead hardware such as Application-Specific Integrated Circuits (ASIC) and Graphic Processing Units (GPU) must be used.
Due to the nature of bitcoins, there are absolutely no physical versions available as balances are kept within a public ledger on the cloud alongside transactions, all of which are verified through huge amounts of computing power. This also means that bitcoins don’t belong to one bank, government, or country but instead are a decentralised currency that can be traded to anyone, anywhere in the world. This inherently ensures lower transaction fees, no exchange rates, and extremely fast trades.
However, despite being completely different to traditional currencies, this does not mean bitcoin cannot be traded for dollars, pounds sterling or any other currency. As of writing this piece, one bitcoin is worth $15,612 in the United States of America, £11,527 in the United Kingdom, and €13,062 across Europe.
Again, many online-centric businesses have embraced bitcoin over the last few years, perhaps none so much as the iGaming industry.
What are Bitcoin casinos?
For almost as long as the internet has existed, online casinos have ruled a large section of the web. Basically, they are the online counterparts to brick-and-mortar casinos with the only difference being you can play anytime, anywhere, as long as you have an internet connection and a registered account. At first, these virtual casinos were somewhat primitive but, as technology has evolved, they have become astounding, offering players all around the world everything from international lotteries, award-winning games, and even live experiences.
When it comes to payment methods, most online casinos dealt in debit cards, credit cards, and eWallets such as PayPal for a very long time. However, new currencies are beginning to pop up on more sites. As bitcoin began to gain intrinsic value and grow more popular among internet gamers, a couple of forwarding thinking iGaming entrepreneurs began to open online casinos that dealt solely in bitcoins, while others began to offer bitcoin in addition to more traditional payment methods.
There are plenty of benefits when it comes to using bitcoin, especially for online businesses. For one, bitcoins aren’t controlled by any banks and can, therefore, operate from and with all parts of the globe without any limitations such as currency exchanges and lengthy waiting times. In fact, there are zero transaction fees at most bitcoin casinos, and daily transactions are often unlimited. In addition to this, bitcoin can be used and exchanged anonymously, yet every transaction is recorded in the blockchain. This means that players don’t need to share any personal information and yet maintain a high level of security regarding what happens with their bitcoins.
Even now, online casinos that deal solely in bitcoin continue to appear across the web, allowing their customers to play all sorts of games in exchange for the cryptocurrency. After all, just because they deal in a new form of currency doesn’t mean they can’t host traditional, well-loved titles. For example, the bitcoin-centric site Vegas Casino offers customers a wide range of famous iGaming genres, from slots and poker. Think they’re missing out on classics such as blackjack and roulette? Not a chance! It’s all there and there are even several variations of traditional games so there’s just as much variety as a traditional online casino. Of course, bitcoin casinos don’t deal just in online games as there are sites that also deal with specific gambling pastimes such as lotteries, sports betting, and spread betting.
How do Bitcoin casinos operate?
Clearly, bitcoin casinos are able to work just as well as their traditional counterparts – but how? Really, it all comes down to software, as is the case with all online gaming websites and companies. For more popular bitcoin casinos with a large, loyal player base it makes sense to run their own gaming software, which has most probably all been developed in-house. Otherwise, there is the possibility of renting or purchasing software from other developers, which can then be modified to suit each individual sites’ themes and colour pallets.
Regardless of where the software is sourced, it all runs the same. The software is responsible for conducting games and ensuring they run without fault, with as little dependency on human intervention as possible. Say, for instance, you are interested in playing a game of bitcoin poker, the software will act as the table dealer and will ensure everyone is allotted the correct number of bitcoins. When bitcoin first began taking over casinos, it was particularly tricky to convince players that software dealing in bitcoin could be trusted, which has led to many of the casinos publishing their specific software’s algorithms.
Do Bitcoin casinos have longevity?
For as long as bitcoin casinos have existed, they have been placed under scrutiny. This is because, before cryptocurrencies came along, online casino owners and the regulatory bodies behind them had based most of the rules on traditional currencies. These classic payment methods allowed casinos to track and identify everyone who played at their sites but this simply isn’t possible when using bitcoin.
Today, anyone anywhere could be using an online bitcoin casino – even individuals who are located in countries where online gambling is illegal – and it is very difficult for the regulatory bodies to ensure everything is above board. Plus, this makes it very difficult for companies to collect data on players, which is often used to grade how successful a casino is. However, if companies, governments, or banks begin to change how bitcoin works, adding more regulations and limitations, then it will erode the very premise upon which bitcoin was built.
Another problem that may threaten the existence of online bitcoin casinos is that there is a possibility of a computer crash completely wiping out the digital currency or a hacker stealing bitcoins from a virtual wallet. These are already extremely unlikely mind you, and as technology continues to evolve, the likeliness of this happening will decrease even more.
Finally, the only other aspect that threatens the longevity of a bitcoin casino is the popularity of bitcoin itself. Right now, more and more merchants are accepting bitcoin as a viable payment method; however, it has a long way to go before bitcoin can be considered a mainstream financial system. Fortunately, for as long as the cryptocurrency aspires to be a form of currency and people continue to adopt it, bitcoin casinos will continue to thrive. Chances are, it will be a slow process but that just means they’ll last longer.
The best gadgets for Bitcoin
Trezor hardware Bitcoin wallet
Self-titled the “original & most secure hardware wallet”, the TREZOR is a cryptocurrency store that uses advanced cryptography, reliable hardware, and a simple interface. Where other wallets are overly complicated, bulky, and difficult to understand, the TREZOR is perfect for anyone who has just been introduced to the world of bitcoin casinos.
Upon receiving your TREZOR, it takes just a few minutes to set up in a completely private, registration-free process. Then, you simply follow the instructions to store your bitcoins with complete security (there’s a two-factor authentication built-in). The best part is that, if you were to lose your TREZOR, you simply need to use your unique, secret code to regain your keys, money, account history, and even emails.
Lamassu Douro Bitcoin ATM
Cofounded by Josh and Zach Harvey of New Hampshire, Lamassu is a company that deals with the basics of bitcoin. It all began with building machines that turn traditional cash from different currencies into bitcoin in just under fifteen seconds. Today, this original concept takes the form of the Lamassu Douro, the most advanced bitcoin ATM on the market. By using this gadget, it is astoundingly easy to get bitcoins quickly, especially when you consider what other miners have to do.
Every Douro comes complete with counterfeit detection, a 6mm SSAB Hardox steel container that keeps your money safe, and advanced open source admin backend support. Other Lamassu creations include the Santo Tirso, a two-way system that enables users to cash out, and the Braga, a floor stand that compliments the original Douro.
ASICMiner Block Erupter USB 330MH/s Sapphire Miner
If you’re interested in mining your own bitcoins, you’ll want to invest in a USB bitcoin miner. Now, while these are often very cheap to buy, we absolutely cannot guarantee that they’ll generate a whole lot of profit. Still, it might be worth getting into as there’s not really much to lose.
The ASICMiner Block Eruper Sapphire Miner were some of the first USB miners to appear on the market after bitcoin became incredibly popular. This particular model we’ve mentioned are available from both eBay and Amazon and, with 330M/Hs of power, you should see minimal profits of around $0.01 per month. It’s not much but it is a great starter tool for new miners who know not to expect too much.
Xbox One
For years, online casino and console gaming fans alike have been asking popular console providers and iGaming operators to merge. After all, online casinos are available on everything, including desktops, tablets, and smartphones these days – so why aren’t they available on consoles? Especially since the variety of casino-based games that are available from console stores is poor, to say the least.
Hopefully, 2018 will be the year that consoles finally allow simple access to online casinos – including those that deal in bitcoin. As for those with bitcoins who wish to purchase a console such as the Xbox One, there are numerous luxury bitcoin marketplaces online such as Spendabit where you’ll find all sorts, including Xbox One consoles, controllers, and games.
There you have it – everything you could possibly ever want to know about bitcoin, bitcoin casinos, how these emerging iGaming platforms operate, and the best gadgets you can buy right now to help you up your bitcoin casino game. Upon first discovering what bitcoin is, it can seem extremely daunting but, believe us, once you start getting into the games on your bitcoin casino of choice, you’ll wonder what you were ever worried about.
Good luck and let us know what other gadgets may be good for aspiring bitcoin casino players in the comments below.
Photograph by Typography Images