I am a casual gambler. Therefore, I don’t always bet all my hard-earned money all the time. I only go to a casino to play poker with my good friends and that only happens around once or twice a month. So when news came that it was finally okay to start playing online poker and bet on it with real money, I got excited. Just think about it; you get to play poker and do online gambling right in the comfort of your home! For a casual gambler like me, I’d say that that is an ideal scenario but for the hardcore casino gambler, there are a few things that might bother them with using Bitcoins.
For those who are not familiar with the Bitcoin, it is a digital currency that is currently not issued by any government or bank. Instead, the currency uses a distinct programming system to limit the amount of “money” that can be created. In fact, only 21 million Bitcoins were made, and no human being can change or alter that amount. It is one of the reasons why Bitcoins are becoming a popular currency for online transactions since there is no fear of oversupply of currency. If you need a good example as to how destructive the oversupply of a currency can be towards a country’s economy, all you have to do is research on how commercial banks almost ruined the economy when they had the power to create hundreds of billions of pounds within a few years!
However, even Bitcoin has its share of problems. MtGox, one of the biggest Bitcoin exchanges, recently revealed that it lost around $500 million worth of customer Bitcoins after a hacking incident. The worst thing about this scenario is not the idea that you “lost” the Bitcoins due to a bad investment. When someone hacks into a computer and stole all of your Bitcoins, you will never get them back. No bank will refund you of the Bitcoins you lost, and there is no known solution on how to retrieve!
Another problem for the Bitcoin is that it is currently a prototype of a new form of currency called “cryptocurrency”. Being the first of its kind, investing in Bitcoin as of the moment requires a certain amount of risk. As to how much risk you should expect, it is something that you will have to work out for yourself. While Bitcoin mining has become a major industry, too much Bitcoin “mining” will never happen because the creation or “mining” of Bitcoins is gradually decreasing. In fact, the money supply might increase by 66% between this year and the year 2025, but the problem about this is that the Bitcoin is becoming more of a speculative asset.
Finally, the amount of this cryptocurrency does not increase along with the number of people who are using it. There might be no problem with this for now, but in the future, only time will tell.