By Georgia Cavalcanti
December 2nd, 2023
BURLINGTON, ON
Bitcoin and the blockchain are well-known to everyone nowadays. However, the inner mechanisms of cryptocurrency technology often elude many. One of the primary assumptions is that Bitcoin is like digital gold.
Bitcoin emerged as an alternative to fiat currency in 2008.
While that might be true, much more is happening with Bitcoin and cryptocurrencies. In this article, we’ll clarify some important concepts and explain some intriguing proposals that can show the value of these assets as much more than a medium to store value.
It’ll become evident how important and disruptive this technology is and why there are such things as crypto casino games, decentralised apps, and many other interesting concepts.
How It Works
Bitcoin emerged as an alternative to fiat currency in 2008. Naturally, it’s a concept tied to economics, so it’s used profusely in online casinos. However, let’s briefly forget Bitcoin’s economic value and delve into the technical aspects.
Bitcoin is a network with no central authority. That means all users participating in this network are at the same level. In this network, users can send and receive bitcoins and store them in a Bitcoin wallet.
That’s when the concept of “blockchain” shows up. It’s a public ledger, meaning it’s a registry of all transactions throughout the network. Each user has all the data everybody else has. This is why it’s called a decentralised network.
There are enormous implications for this. First, you can send and receive bitcoins anywhere, at all times. Since no one controls it, there are low to no fees, depending on the transaction type. Plus, there can’t be any manipulation.
For example, central banks control the supply of money in a country. They can decide to enable certain policies to exert control, which might be unfavourable for people. This isn’t the case with Bitcoin.
Since it works by consensus, it’s almost impossible to tamper with. If a hacker wanted to manipulate the network, they would have to somehow control a significant amount of participating devices, which is almost impossible.
Gold, Casinos, and More
Some of the best examples of Bit Coin use are online casinos.
Bitcoin was purposely developed as a finite asset. Only 21 million bitcoins are possible, and only about 1.5 million are left to be rewarded. In this respect, it’s the same as gold because it also is a finite resource.
This scarcity and the novel approach to economics have led to the incredible Bitcoin revolution as a store of value. However, there are many other uses for it.
Some of the best examples are online casinos. On such websites, you can play casino games of various kinds, and many allow transactions with Bitcoin. It means that you can deposit and withdraw with it. Generally, other cryptocurrencies are available, too.
This is important, as there are yet few entertainment outlets that have fully embraced cryptocurrencies as a valid payment method. It validates these digital assets and likely helps pave the way for more options.
Even though Bitcoin is primarily used as a financial-related network, the principles it pioneered were used for other, more intriguing purposes.
For example, other networks, such as Ethereum, offer the ability to develop decentralised apps. It means that instead of operating from a central server or computer, the app operates in a network.
This is a significant development. Imagine there’s a decentralised news app covering a government scandal. Since all participants have the information, it would be impossible to censor. This is why Bitcoin and its peers are more than assets for speculating their values.
Closing Thoughts
Bitcoin is much more than digital gold and a payment method for online casinos. How much more – we don’t know yet.
Bitcoin is much more than digital gold and a payment method for online casinos. It’s a proof of concept on how society could dispense with current monetary control and all the ramifications that might happen, good and bad.
Furthermore, it shows how disruptive technology can impact society and shake its foundations. Whether we’ll live in a centralised or decentralised world remains to be seen, but the discussion wouldn’t exist without Bitcoin.
