We have already established that Bitcoin is actually a form of online currency yet it’s not Euros or Dollars. Think of it in terms of virtual tokens that can be used to pay for items and services purchased online. When it was first introduced its developers claimed Bitcoin would in fact “revolutionize global finance”. So far the Bitcoin hasn’t really caught on nor has it revolutionized global finance. Unlike actual currencies there is no central authority that governs Bitcoin. There is no version or serial code, no central bank, and no regulations. Unfortunately this makes it a popular choice among those who don’t want their currency to be traced – such as drug dealers.
When someone uses Bitcoin to pay for a good or service the money will go from you to the merchant or person directly through the Bitcoin P2P system. It doesn’t need to go through a financial institution or a third party, rather it’s just about the buyer and the seller. But then how is Bitcoin actually used for something when it’s not a physcial currency. How do you even get Bitcoins to then use? You need to have an app on your computer that in fact “mines” the Bitcoin over time. The process is extremely slow and each new Bitcoin is given in exchange for allowing the computer power to process the transactions. Bitcoins are spread out in relation to who has the highest computing power during the creation of the Bitcoin. There’s another catch, there is a limit on how many Bitcoins can exist. So the more people who use it and generate Bitcoins the less each person will be able to receive since there isn’t an infinite amount to pass around. This is why some people choose to sell their Bitcoins for real currency instead. There are only 21 million Bitcoins that can be reached with the deadline of 2014, which is coming up soon.
As well there’s the question of where can you use Bitcoin and on what? As of right now there aren’t a whole lot of companies/merchants that trade and sell products who accept Bitcoins as a mode of payment. There are some services that do welcome the use of Bitcoin such as online gambline and web hosting.This is showing signs of changing though with more people starting to catch on to Bitcoin. From a merchant standpoint there are no fees involved when using Bitcoin which can certainly act as an incentive.
How Can the Average Person Obtain Bitcoin?
If you’re interested in getting Bitcoin to use the first thing you’ll need to do is install the app to mine it. This can be found at www.bitcoin.org by downloading the “wallet”. You can install this app on your desktop computer or your mobile device.
You’ll get a block of 25 once you are able to generate a 64-digit number from an algorithm that is very complex. It’s not like a normal currency where you can simply withdraw from a bank or work to earn it. You can however purchase Bitcoins through certain online exchangers and sellers online.
Keep in mind that unlike most currencies Bitcoin’s value is all over the place. It can suddenly plummet just as fast as it can soar in value. This means you aren’t getting a whole lot of security in the value department. Most economists seem to be in agreement that it won’t take over and revolutionize the financial landscape as the developer had hoped. It is just far too unstable.
While Bitcoin is far from revolutionizing global finance as it set out to achieve it has in fact come a long way since its introduction. Today more people are aware of the currency and even if Bitcoin doesn’t end up sticking around it could spark the creation of other online currencies in the future and starting a whole new trend.
Latest rumors and evolvements in Bitcoin gambling
2nd April 2015: There’re numerous rumors being published in credible magazines regarding the implementation of Bitcoins as a payment option for the biggest poker room “Pokerstars”. Though it’s likely that they’ll sooner or later decide to accept Bitcoins for poker deposits, right now they deny the whole thing.