Have you ever wondered about what Bitcoin is and how it works? In many cases, it’s easy to overlook Bitcoin as an option limited only to investors with little practical purpose, but this isn’t entirely the case. With this thought in mind, today, we’re looking at some of the key things you need to know about Bitcoin, including what it is, how it works, and how you can actually use Bitcoin from a real-world perspective.
Bitcoin is a specialist decentralized cryptocurrency that served as the first-ever successful digital currency created on the cryptocurrency market. Before Bitcoin was launched, several earlier models were released, such as the eCash system in 1990, but none of these early precursors to Bitcoin saw the same success.
Since its original release in 2009, Bitcoin has massively fluctuated in terms of value, demand, and popularity, making it a potentially lucrative but often high-risk investment opportunity. Nevertheless, despite this, Bitcoin remains the most popular cryptocurrency in the world.
The Bitcoin logo represents the currency as being a gold token with the Bitcoin sign (₿) in the middle. An earlier version of the Bitcoin logo from 2009 was very similar, but this design instead featured “BC” in the middle of the token.
Bitcoin was produced and released as open-source software by Satoshi Nakamoto. However, very little is known about Satoshi Nakamoto, including who he is and his nationality. He has claimed that he is a 47-year-old Japanese man; however, the reality remains that Nakamoto could be anyone, and their identity is entirely up for speculation. Some people, for example, believe Nakamoto to be British (or from another Commonwealth country) due to his use of native British English expressions and spellings.
Bitcoin is not a stablecoin, unlike some other options such as Tether. As such, this means the value of Bitcoin can fluctuate massively depending on the perceived value at any one time. Similarly, as with many modern fiat currencies, the value of Bitcoin is not based on a specific physical asset; rather, its value is determined by its usefulness as a payment method, with many external factors hence influencing the price demanded by bitcoin. As a result of this, there is no intrinsic value to Bitcoin; all of its value is perceived value instead.
Bitcoin’s value is hard to pinpoint since the price demanded by Bitcoins can fluctuate massively from month to month – and, in some cases, almost daily. For example, at the time of writing, Bitcoin’s value has dropped by around $100 in around half a day. This highlights just how unstable the currency can be. However, it’s important to recognize here that such fluctuations typically fall at around $50 per Bitcoin, with announcements making the biggest impact to Bitcoin’s value.
The value of a single Bitcoin has varied massively since its inception. In the early days of Bitcoin, each was worth a marginal $0.0008 and continued to grow steadily from there. The all-time highest value of a single Bitcoin was well over $60,000, indicating just how broad the fluctuations can potentially be.
Bitcoin works on a blockchain, with Bitcoin miners being rewarded for validating blacks. Generally speaking, The system is a fully peer-to-peer network and works on a decentralized system, meaning that no single entity is responsible for managing and operating the Bitcoin network.
As with other forms of cryptocurrency, Bitcoins are stored in a secure wallet. Transactions between holders occur when money is transferred from one Bitcoin wallet to another, often through a cryptocurrency exchange. However, payments can be made with Bitcoins directly to supporting companies similarly to paying by credit or debit card.
It is important to consider here that Bitcoin is not legal tender in a handful of countries. As such, before you begin looking to use Bitcoins, you should check that Bitcoins haven’t been criminalized in your country.
Due to the broad fluctuations in Bitcoin’s value, it’s absolutely possible to make money with Bitcoin investments. However, investing in Bitcoin to buy and sell is a relatively risky business since there is no form of backing for the currency; as such, the value of Bitcoin can plummet just as quickly as it climbs, making it a risky investment.
However, it is also possible to make money with Bitcoin in other ways, such as by investing in a platform and earning income from interest. However, there is no guarantee that your Bitcoin will be worth the same when you come to sell it down the line, so when purchasing Bitcoins, you should always be cautious to ensure you don’t end up investing money you can’t afford to lose.
If you want to buy Bitcoin, as is the case with most cryptocurrencies, you can simply head to a generic cryptocurrency exchange. There, you can directly purchase Bitcoins with fiat currency or other types of crypto. However, mining Bitcoin by solving Bitcoin blocks with computer technology is also possible. With top-quality technology, professional Bitcoin miners can mine Bitcoin in about ten minutes, but most systems will need around one month to mine a full Bitcoin.
At this point, we’ve outlined the main things you need to know about Bitcoin. However, it’s not always clear how to use Bitcoin in a real-world scenario. With that being said, using Bitcoin is generally very similar to making regular debit or credit card payments, especially when talking about online transactions. As such, an increasing number of people are using cryptocurrencies, such as Bitcoin, to bet at casinos.
There are many different reasons you might want to use Bitcoin to bet at casinos, and considering these may help you determine whether this is the right option for your gambling goals.
However, it’s very important here to keep in mind that using Bitcoin to bet at casinos will come with a slightly greater risk than betting with a stablecoin or another type of crypto. Due to Bitcoin’s popularity, its value fluctuates massively by around 0.5% per hour or so. While this might not seem significant, it can absolutely impact the value of what you pay to a casino, so this is very important to consider.
The main benefit of using Bitcoin as a payment method for casino platforms, as with other cryptocurrencies, is that it provides a fully anonymous payment method. As such, if you’d like to bet on casino games but don’t want these charges directly tied to you – for the purposes of privacy – betting with Bitcoin can be an appealing option.
However, we must stress here that Bitcoin must never be used anonymously in countries where doing so is illegal. It should also never be used in countries where casino games and betting are illegal, such as Qatar.
If you’ve been looking to use Bitcoin for casino betting, you’ll first need to purchase Bitcoins – and luckily, this is incredibly easy to do. Since Bitcoin is the most widely used cryptocurrency, new trades are posted regularly on platforms and crypto exchanges that can facilitate your betting. As such, if you would like to deposit with an online casino, receiving Bitcoin into your crypto wallet is incredibly quick.
It’s not just the process of buying Bitcoin that’s quick. Bitcoin transactions are also usually handled very rapidly on casino sites! This ensures that you won’t have to wait around for hours or days for the deposit to be registered on the casino platform; from there, you’ll be able to play your favorite casino games very quickly.
Since Bitcoin is the most widely-used form of cryptocurrency, it’s perhaps unsurprising that it’s also one of the most often-implemented crypto options for individuals looking to bet at a casino. As such, if you want to bet on casino games with cryptocurrency, Bitcoin is generally the best bet for the number of casinos that support it. However, not every casino will support Bitcoin payments, so check this with your chosen casino before investing in Bitcoin to avoid disappointment.
If you’ve been looking to find the ideal solutions for your own cryptocurrency needs, Bitcoin is one of the most obvious options out there. Indeed, as the most popular original cryptocurrency, it’s perhaps unsurprising that Bitcoin is one of the most popular go-to options. However, before investing in cryptocurrency, there’s a lot to consider, and you might just find that it could be a good option for your own investment needs.
With this thought in mind, we’ve summarized some of the key things you should know today – but before you look at investing in Bitcoin, it’s important to remember that the value of Bitcoin can fluctuate massively. As such, you may need to consider whether Bitcoin is a stable investment for your needs – and critically, you should never invest more in Bitcoin than you’re financially able to lose.