The Three Biggest Issues with Bitcoin

14
Jun 2016

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.


Bitcoin – What Exactly Is It?

20
Mar 2016

table-games-header

When the Internet was born no one expected that it would become a major phenomenon that would change how we act for both business and personal use. A few years later, emails have become extremely popular and everyone has the ability to send or receive messages within seconds. Then along came online chatting and online social interactions. Finally, businesses have also started using the Internet as a means of faster transactions and communication. Which is why, when Bitcoin was invented and published in 2008, no one was surprised anymore. Now this peculiar cryptocurrency is being used not just for business transactions, but even for daily monetary use.

Even online gambling has started using Bitcoins. Not surprising, since it is easier to use Bitcoins as a replacement for real currency for online gambling and it also helps prevent hackers from accessing your actual credit card or bank account information.
But what exactly is a Bitcoin? Although its popularity is catching up to that of popular Internet terms, like social media and online marketing, there are only a few who actually know what it is. And if you think that there are only a few people who have an idea what it is, there are even fewer people who realize its true value in a world where online transactions are the norm!

Let’s have a small history crash course about Bitcoin’s humble beginnings. In 2008, “Satoshi Nakamoto” invented a payment system where users can transact directly with each other without the need of an intermediary. This payment system is Bitcoin. The way it works is that each transaction is verified by a series of network nodes and the transactions are then recorded in a block chain. A block chain is some sort of distributed ledger that can be accessed publicly. This ledger also uses its own unit of account, which is also called, well, a bitcoin. The US Treasury has categorized Bitcoin’s unique transaction system as that of a decentralized virtual currency.

For those who are wondering who “Satoshi Nakamoto” is, some sources claim that he’s not exactly a real person. Others claim that this name is a front for the actual group responsible for creating Bitcoin. Others are saying that it is an alias of another person in order to protect his/her identity.

And because it’s not under a central network and is also an online currency, people who use or trade with Bitcoin can definitely use the currency to their advantage. Every transaction for Bitcoins is collectively approved by a user network. And because it’s a cryptocurrency, it currently has no solid form. There’s no actual coin or bullion for Bitcoin, thus it’s possible to have an infinite number of Bitcoins at your disposal. However, businesses that allow the use of Bitcoin have all agreed that the maximum possible number of Bitcoins for a single person should be set at 21 million.

Right now, Bitcoin mining is fast becoming a legitimate source of income for those who prefer to trade in online currency on the Internet. As to how that is done, that will be another story to tell!


The Currency of the Future

21
Oct 2015

Casino-Gambling

I’m writing this on October 21, 2015. While there is no special holiday for this particular day, social media is buzzing with excitement. It’s all about the hit movie “Back to the Future 2” where in the film, the characters Marty McFly and Doc Brown travel into the future at exactly October 21, 2015. Thus, huge fans of the film keep comparing the stuff that was present in the movie with the things that we now have in reality. Surprisingly, a lot of items in the movie now exist in this timeline of ours!

If there’s one thing in the movie that remains the same in real life, it’s money. However, that may also change soon because of Bitcoins. For those who are not familiar with what a Bitcoin is, to put it simply, is a crossover between a stock and a form of payment. Developed and invented in 2008 by an anonymous group, the Bitcoin has evolved so much during recent years that it is now legal to play and wager Bitcoins for online gambling websites and other forms of transactions. Right now, a lot of services and businesses are contemplating whether to allow people to use Bitcoins in order to pay for stuff bought online.

Why are people slowly switching to Bitcoin? The only reasonable answer for this is the fact that since it’s a form of virtual currency, it is a perfect match for people who do online transactions all the time. The same goes for businesses that thrive because of the Internet; with Bitcoin, online transactions regarding businesses over the Internet become flexible and manageable. You can send small amounts of currency to people from all over the world without having to worry about the exchange rate and other stuff.

It also helps protect important credit card and bank account information during online transactions; a Bitcoin may have a value of its own, but you don’t necessarily need to deposit or keep it in an account.

With online gambling now making it possible to use Bitcoins as a form of wager, more and more businesses are keen on capitalizing this popular cryptocurrency for online transactions. The way I see it, some of the most popular shopping websites online, like Ebay and Amazon, might just be crazy enough to jump into the whole Bitcoin bandwagon as well. To be honest, I wouldn’t be surprised if that were to happen. Without a doubt, one can definitely assume that Bitcoins could be the currency of the future!