An Insight on Bitcoins
All through the years ever since the onset of online gambling, Bitcoins has played a major role in the industry of digital currency. With constant innovation, improvement and advancement Bitcoins have made a prominent place in this market. Most of the online casinos started accepting this cryptocurrency and included it in most of their entertaining games.
A software developer under a false name of Satoshi Nakamoto proposed the concept of Bitcoin in 2008, as an automated payment system built on mathematical proof. His idea was to create a means of exchange that would be independent of any central authority and could be transferred electronically in a secure, certified and irreversible way. It is an electronic mode of making payment for many things when both the parties are willing. Eventually, with the introduction of bitcoin gambling in most of the online casinos, its demand increased highly.
The difference with fiat digital currencies
Some of the advantages of Bitcoin over fiat digital currencies and why it gained easy entry into the online casinos in the form of bitcoin gambling are:
- Decentralization – This is the most vital characteristic of Bitcoin. It is not controlled by any institution instead maintained by a group of volunteer coders and run by an open network that consists of dedicated computers that are spread around the world. This proves to be attractive for the groups and individuals who are not comfortable in dealing with government institutions or banks. It also sorts out the problem of “double spending” that you face in case of most of the other electronic currencies.
- Limited supply – Fiat currencies like yen, euro, dollars etc. are known to have an unlimited supply and thus the value of the currency can be manipulated by the banks. But the supply of the Bitcoins is strictly controlled by an underlying algorithm. Every hour a fixed number of Bitcoins are issued and continued till an amount of 21 million is reached. So, with this limited supply and increasing demand its value keeps increasing.
- Pseudonymity – Unlike the senders of fiat currencies, the users of Bitcoins work based on a concept of semi-anonymity where the identity of the users is not validated by anyone. When a request is raised for any transaction it is the protocol that checks all the previous transactions and confirms that the sender has in store the required Bitcoins along with the authority to send them. Most of the currencies are required to do an identity check of their customers before they are bought or sold. But in the case of Bitcoins, a user is identified by the address of the wallet. Due to the transparency, the steps followed in any transaction are visible to everyone.
- Immutability – Once a transaction is made, it cannot be reversed like the normal fiat currencies. The reason behind is, there is no existence of any central adjudicator who can give instructions. If an hour has passed after a transaction has been made, it is not possible to modify it in any case.
- Divisibility – Bitcoin’s smallest unit is known as Satoshi, as per today’s price which is one hundred millionth of a bitcoin (0.00000001). This can, therefore, enable microtransactions.