It probably seems a bit of a redundant question to pose these days, as Bitcoin is taking off. But Bitcoin, once an underground form of digital currency, is now popular with millions of users worldwide. And, slowly but surely, it’s disturbing the mainstream, thanks to industry adaptation, partnerships with big brands and businesses, etc.
How does Bitcoin work?
The long and short of Bitcoin is that it is a digital currency that users can buy, sell, exchange and trade with no third party or financial authority involved because it is decentralised. Therefore, you could say it’s like using an online banking system, but you, the user, is in complete control.
Bitcoin exists on a blockchain network, which in many ways acts similar to a Google document. Any transactions that happen using Bitcoin are processed and then recorded permanently on the blockchain. Nobody can edit or remove entries once they are added.
How do I use Bitcoin?
Using Bitcoin is more straightforward than people give it credit for, as many feel it will be daunting to complete transactions. But it couldn’t be further from the truth. However, there are several things people need to know and have ready before they start on their BTC adventure.
When you have cash and coins about your person, for the most part, you will keep them safe in a wallet or purse. And the same applies to Bitcoin and other cryptos. Users need to have a storage solution in place, known as a wallet, before they can begin using cryptos such as BTC to pay for products and services online. But, again, there are options to suit everyone, again making it a hassle-free process.
When a user has their wallet, they will need to buy Bitcoin. And, acquiring BTC happens at places known as exchanges. Then, using a credit or debit card, or e-wallet, fiat currency will complete the purchase, with the amount of Bitcoin owned then showing in the crypto wallet.
What is Bitcoin mining?
Many people will have probably heard of the phenomenon of Bitcoin mining but won’t be sure about what it is or how it happens. Well, we mentioned above how the transactions using BTC store on the blockchain. However, transactions must process and verify before this can happen, and it happens through Bitcoin mining, known as proof of word, with mathematical equations used to give the thumbs up.
Miners use powerful computer systems to process as many transactions as possible because the reward for doing so is Bitcoin. Therefore, miners get paid for their efforts. And, at the same time, this brings new coins into the ecosystem, so it’s a win-win situation.
Investing in Bitcoin
One of the reasons Bitcoin’s popularity has surged in recent times is that more people than ever are now investing in BTC. But, investing isn’t a case of buying a bit and then taking it out or spending it online. Instead, investors in the main hold their Bitcoin, adding to it, hoping to reap massive profit further down the line.
While Bitcoin’s price can be somewhat volatile, it is up over 240% at the time of writing in the last twelve months. And its price climb of a stunning 29.7K% since debuting tells you everything you need to know about the world’s leading crypto. For investors, it’s a case of having the spare funds to invest and hold for a while.
Gaming with Bitcoin
An industry that Bitcoin was always going to impact positively was the online casino sector. You could say the two entities marry up perfectly because Bitcoin brings solutions to many of the stumbling blocks online casino operators are desperate to overcome.
For example, punters at gaming sites have long complained about waiting times for deposits and withdrawals to process. Well, waiting is a thing of the past, thanks to BTC. As as soon as a transaction is processed, it will be completed. Often in a matter of a few minutes. It’s significantly better than waiting several business days for a withdrawal to hit an account.
Using the blockchain technology behind Bitcoin also makes some games available to play at online casinos provably fair, so there can be no doubt about the result or outcome. Provably fair games get rid of the shouts of content being rigged in the operator’s favour, which is never a bad thing. Using Bitcoin to deposit and withdraw boosts security, too, as there is no third party involvement and, therefore, less chance of cybercrime occurring.