What Is Bitcoin? The Most Famous Cryptocurrency Exposed
Sup, dawgs! This is your boy Derrick, coming at you with a super important guide. Put on your thinking caps, dawgs, cos we’re gonna get serious in this joint. That’s right – no lame jokes, fluff or puns (alright maybe a few if they come naturally). Let’s talk about the top trending online casino payment method. Let’s find out what is Bitcoin.
The History of Bitcoin
To truly understand Bitcoin, we need to go over a quick history lesson. The goal is to get a better understanding of how Bitcoin came to be and, more importantly, why so many online casinos use it nowadays. Rewind the tapes!
How was Bitcoin created?
Essentially, Bitcoin was based on the idea of having a type of currency that isn’t tied to a bank. Every major bank has its own currency: the US has dollars, Europe has euros, Russia has rubles, and so on. Each of these banks can, in some way, control what happens to the currency on the global market which may not always be beneficial to the users themselves (think inflation). So one day, someone got fed up with the idea of banks having complete control over money and came up with an alternative:
A decentralized currency.
Who started Bitcoin?
Bitcoin was created back in 2008 by a mysterious person or persons. The actual creators never stepped out to claim responsibility and remain unknown to this day. But what really jump-started things was the fact that Bitcoin was released as open-source software in 2009. This means ANYONE could access it, trade it, link it to other tangible assets, etc.
Who is Satoshi Nakamoto?
You probably know that this fella, supposedly, invented Bitcoin. Regardless if he is real or not, he wrote the famous “Bitcoin whitepaper” on how Bitcoin is supposed to work. They dished out guides on how things worked and invited people to start using their PC for mining blocks. As a reward for mining blocks, people would get Bitcoins – a transaction model that most cryptocurrencies employ even today. Thank you, Bitcoin’s creator!
How Does Bitcoin Work?
Two words: blockchain technology. Blockchain is basically a type of database network that uses blocks. Normally, a database is stored on a big, powerful computer server, which is controlled by designated individuals. A blockchain database, however, consists of computers that are spread out all over the world (hence the name blocks). Think of it as a gigantic hotel with almost infinite rooms. These “giant hotel rooms” are keeping tabs on every transaction ever made while people who “manage” these hotel rooms are known as Bitcoin miners.
How does Bitcoin mining work?
Once the Bitcoin network went public, it was teeming with nodes or hotel rooms that were still under construction. Bitcoin miners used their PCs to complete these nodes and make them available for Bitcoin transactions in exchange for Bitcoins themselves. This is called Bitcoin mining.
The very first Bitcoin node that was mined was worth 50 Bitcoin, although they weren’t worth jack back then. Nowadays, many people huddle up (Bitcoin mining pool) by combining their PC powers to level up their mining game. Before you get too hyped about mining bitcoin yourself, just remember: the more the miners, the harder it is to mine. In fact, mining is harder than it’s ever been. These days, it can take months – years even – to mine a node. The time spent depends on the computing power of a mining pool and the number of miners in it.
Another thing that Bitcoin miners do is manage transactions. Basically, they help transfer Bitcoin from one wallet to another (kind of like Western Union). They charge a small “gas fee” for each transaction.
So, in a way, when you mine bitcoins, you are either helping to expand the bitcoin network or helping with the transaction process. Whatever the case, a miner would need a really powerful computer (we are talking top tier gaming PCs with 2 graphic cards yo!) and money to pay the electricity bills.
How to use Bitcoin?
Using Bitcoin is just like using money. The only difference is that Bitcoin only exists as a digital currency. Just like we keep digital money on our bank accounts, we also have Bitcoin wallets at our disposal. However, unlike fiat currencies (dollars, euro, pounds, etc.), Bitcoins don’t come in a physical form. You can’t pay with them in a store and expect change BUT you can tie them to certain assets.
So how do we use them? Most people have a digital wallet on their phones but they can work on PCs, too. Making Bitcoin payments or any other cryptocurrency exchanges requires taking out our wallet (phone), scanning a QR code or entering that huge wallet address manually. We also get to pick how much we are willing to pay for gas fees (the more we pay the faster the transaction).
When the money is sent, we will get a receipt in the form of a hash UD. This hash is viewable by anyone who owns the code. This means all transactions are public (which sounds scary), however, the personal data of the sender and receiver remain exclusive. That’s one of the main draws of Bitcoin exchanges, dawgs. You can track Bitcoin transfers but you can’t really tell who is transferring them. Now, do you see why casinos love these so much?
How to buy Bitcoin?
Time to talk about how you dawgs can get your mitts on some digital coins! First, since one Bitcoin is valued at tens of thousands of dollars, you’ll probably end up buying fractions of it (0.0001 BTC, 0.0002, BTC, etc.). So how do we buy them? The same places where we can buy fiat currencies: Currency exchange shops. ONLINE exchange shops, to be exact!
There are plenty of websites where you can buy cryptocurrencies with fiat currency and getting into the game is easy. The only annoying part is creating your own Bitcoin wallet, which may take up to 10 minutes for security reasons. Here’s the gist:
- Pick a site where you can buy crypto
- Create an account/wallet
- Link your credit card and you’ll be ready to buy some bitcoins.
Simply search for Bitcoins (or other cryptocurrencies), select how much you want to buy and there you go. While most online exchange shops also act as digital wallets, you can also have your very own crypto wallet and transfer funds from the exchange shop wallet.
How to invest in Bitcoin?
Nobody could have predicted the value of Bitcoin would skyrocket since it came out and now, many people want in on the investment game. When we talk about investing in something, we usually talk about the stock market, dawgs. Well, lookie here, if you do a quick google search on the current crypto market values, you’ll see something that looks suspiciously similar to a stock exchange.
Fair warning, even seasoned stockbrokers are wary of crypto markets because of their volatility. But investing in Bitcoin is super accessible. All you gotta do is buy some (fractions of) Bitcoin and sit on them. Hoard them. That’s about it. Hopefully in a while (a few years) the value will increase enough to sell Bitcoin for a small fortune. At the same time, there is a chance that the price of Bitcoin will fall – anyone who jumped on the bandwagon should be prepared for that risk.
So, if you are interested, go for it, dawgs. You can also try investing in Ethereum, Litecoin, Tether, Ripple or any other crypto you believe might rise in the future. I’d advise not to go all in, but hey, maybe you like to gamble more than your boy Derrick.
What Are Bitcoin Casinos?
After the world got over the initial shock of Bitcoin’s skyrocket to fame, casinos were among the first industries to bet on that horse. It was only a matter of time before something even bigger happened. See, most casinos really like when you pay in Bitcoin. They love that it’s almost anonymous so no banks would go about asking questions. Of course, the fact that Bitcoin transactions are fast and secure only helped. This gave rise to Bitcoin casinos.
On the surface, Bitcoin casinos are the same as your regular online casinos. The two major differences are that Bitcoin casinos accept digital currency (thank you Captain Obvious) and they have their own Bitcoin software. Yup, they got games specifically designed to accept no other fiat or virtual currency except Bitcoin.
How do we rate crypto online casinos?
We rate crypto online casinos the same way we would rate other non-crypto casinos. We take the following aspects, analyze them, and spill the beans:
Security, licensing and provably fair
Even though bitcoins themselves are considered very safe, that doesn’t necessarily mean that the casinos that accept them are, too. Security is one of the top priorities in our online casino reviews, especially when they depend on a Bitcoin system, dawg.
Another thing you’ll hear a lot about is “provably fair”. Provably fair is an online casino algorithm that works well with brand new casino games, especially Bitcoin games. Each time provably fair games play out, they save each move/deal/spin in the blockchain. Using this blockchain they can generate better random outcomes. In layman terms, a provably fair algorithm makes sure that neither the casino nor the software providers can rig the games. Whenever you see the “provably fair” logo, you can bet yo ass that the games are not rigged.
In short, when we review Bitcoin casinos, we examine the online casino payment methods and the provably fair algorithm. If we find the two are lacking, we start raising our eyebrows, dawgs.
Cryptocurrencies accepted
The name “Bitcoin Casinos” is more of a trend. They really ought to be called crypto casinos. Who can blame them, though? Bitcoin was the first cryptocurrency to spawn its own games. Most of the time, Bitcoin casinos will accept at least a handful of other cryptocurrencies. Here are a few others that are almost universally accepted:
- Ethereum, Bitcoin Cash, Litecoin, Dogecoin, Tether, Ripple, etc.
Of course, there are hundreds of cryptocurrencies out there and it’s really up to the online casino to determine their worth.
Bonuses & promotions
You better believe that online casinos will give you a bonus for depositing funds in bitcoin. In fact, most casinos will give you a much more generous offer than those deposited in fiat currency. Bitcoin bonuses not only give you a better percentage of bonus funds but better wagering requirements as well. Naturally, the more bonuses the better (however, there were cases of having too many bonuses).
What is Bitcoin Gambling: Guide to Crypto Casinos
Crypto gambling is currently the hottest thing in the industry. This part of the guide is meant for those who are still on the fence about using Bitcoin. Let’s not kid ourselves. As cool as Bitcoins are, they do have some glaring flaws, and we are going to explore them right now.
Advantages of Using Bitcoin
Luckily, there are more advantages than disadvantages to using Bitcoin, especially when it comes to online gambling. So let’s take a look:
Decentralization
Basically, once you get into the bitcoin market, banks are out of the picture. While your boy Derrick has never had trouble with the big bad bank man, I can see the appeal of eliminating the middleman. Blockchain technology basically eliminated the central bank. Nobody is able to look at your bank statement and go: “Mr. So-and-So is gambling again, it seems.”
Bitcoin Transaction Fees
Bitcoin transaction fees are smaller compared to traditional currencies. Normally, when you deposit funds into an online casino, you will usually have to pay a small fee. Either to your bank, to the credit card company, e-wallet – you name it. The nice thing about Bitcoins and crypto is that you can name your price. Gas fees can be adjusted and the more generous you are the faster the transaction should be. Although, there are cases when a casino is in cahoots with a crypto wallet and they can influence the starting price.
Verification
When we say “Verification” we aren’t talking about Bitcoin wallet verification but a casino’s verifications. The nice thing about online casino verification is that there really isn’t one. Depositing funds using Bitcoin and withdrawing them is a simple process without the added hassle.
Bitcoins are a double-edged sword. On one hand, every bitcoin purchase is visible on the blockchain but no one is able to ascertain who the sender and the recipient were. Apart from that, casinos can’t really verify if a wallet belongs to you so they won’t waste too much of your time with verifications. Less time spent verifying payment methods means more time playing casino games, dawgs.
Worldwide Acceptance
Because of their digital nature and the fact that they don’t have a central bank, Bitcoins are accepted everywhere. If a casino accepts bitcoins, they will accept yours, too (provided they accept your region). Mark my word, dawgs, one day you won’t be worried about turning your dollars into euros during your travels. You’ll just need to make sure your Bitcoin wallet is topped up.
Anonymity
Even though every single wallet is marked and tracked, people can’t tell who the end-users are. This also means that Bitcoin can be used for black market transactions, money laundering and other shady businesses. On the other hand, this also means that nobody can know that you are using your Bitcoin for online gambling. Yup, while your deposit will be added to the blockchain, nobody will be able to tell that YOU sent the money to the CASINO. The only thing that’s visible is the address. In some ways, it’s scary how anonymous Bitcoins are but at the same time, it’s cool how you can go full ninja mode with your payment method.
Disadvantages of Using Bitcoin
Of course, Bitcoin is not without its shortcomings, and there are a few of them:
No recourse
When you send money to someone else, the banks like to sit on that money before it actually gets there. This is good in case you mess things up, dawg. For example, if you send your money to the wrong bank account, you can simply call the bank and, usually, they will give you your money back. But send your bitcoins to the wrong address and you can kiss them goodbye. Normally, you don’t think about these things until it’s too late but it really hurts when you realize that your Bitcoin fell in the wrong hands and that there’s nothing you can do about it.
No chargebacks/reversals
When you come to a realization that you have nobody to call in case of fraud, theft or mistake when dealing with bitcoin, you really start to appreciate banks more.
Price volatility
One day, you can buy one bitcoin for $50,000 only to find out that the next day the bitcoin’s price fell to $30,000. I think this gap speaks for itself. When bitcoin launched, the first bitcoin transaction involved paying 20,000 of these bad boys to buy two pizzas. Now you can buy an entire apartment for like 3 of them. These things are volatile and nobody can predict when they will jump or drop in price.
How To Stay Safe With Bitcoin Gambling?
Alright, dawgs, time to talk about how to keep your electronic payment system safe in the world of Bitcoin gambling. Down below, you can find a bunch of tips that might just save you from sending your digital currency to a scammer.
Choosing reputable sites
Always check whether or not an online casino is reputable before you deposit ANYTHING, especially Bitcoin. Your boy Derrick probably doesn’t need to remind you about all the scammers out there who just want to run away with your crypto without even letting you play casino games. So, always make sure that the online casino is licensed and secured. You can do this by finding the online casino itself on our site. If you can’t find it, it’s probably a scam site, dawgs.
Passwords
I don’t know about you dawgs, but I cherish my passwords. I think I’m one of the few people who proudly keeps his password in a drawer just in case. If you can’t help but forget your password over and over again, maybe it’s time to use one of those handy dandy password protection software we see everywhere.
Phishing scams
As much as I would love to tell you how not to fall for scams, I was the victim of one. One of my payments couldn’t go through and since I had no banks to call. So I asked on a forum. A dude answered my prayer and told me that my wallet wasn’t verified and gave me a link. Like a fool, I clicked on it and even entered my wallet’s private keys (seed phrase). Basically, don’t be a doofus like your boy Derrick. Beware of phishing sites. If you give someone your private key, you’ve basically given them your entire wallet forever.
Trusted exchange
When deciding to buy bitcoins, you gotta know where you are buying them from. Just like blacklisted online casinos, there are scam exchange websites that will gladly take your credit card, bank details, e-wallets. They do so by promising your shiny new Bitcoins. Just like finding the best burger joint, you should also search online for the best place to buy Bitcoins. The cryptocurrency community will provide trusted sources, just beware of phishing. If you go down below, we are also going to give you a few trusted exchanges where we regularly get our crypto.
Safe storage
Bitcoins and other digital currencies are stored on electronic wallets. Electronic wallets are usually downloaded from your phone’s app store. Any wallet that you download outside the app store or play store should be avoided at all costs. Even if your wallet did come from a reputable app store, it never hurts to do a quick google search and check out if the wallet is reputable or not. Fortunately, you probably won’t have to make anything other than an account on a trusted exchange website because most of them will have their own wallets included with your account.
Crypto & Bitcoin Casino Bonuses
Holy cow, we’ve talked so much about how Bitcoins work that we completely forgot to talk about all the sweet bonuses you can snatch. Fortunately, if you are familiar with casino welcome bonus, Bitcoin casinos won’t really surprise you all too much. Just like those exclusive bonuses you get by using a specific payment method, Bitcoin bonuses are fairly similar.
Deposit bonuses
As the name suggests, bitcoin deposit bonuses will award you with a percentage boost from your casino deposit. This is usually a 100% deposit bonus (Deposit 1 BTC, play with 2 BTC). Please note that the one bitcoin you would get from the deposit is not a real bitcoin, but only part of the virtual currencies used within the online casino. These babies need to be wagered before they can be used in the “real world” so don’t get too excited when you first acquire them.
No-deposit bonuses
Ah, yes, the fabled no-deposit bonuses. The bonuses are acquired without depositing anything. No matter how many times we explain it, people still think that they can find a no-deposit bonus, roll it over and come out rich without spending a single dime. No, dawgs, that’s not how it works. No deposit bonuses are really humble, limited and extremely hard to turn into real money.
The same thing goes for Bitcoin casinos. While a Bitcoin casino can give you 20 free spins without a deposit, they will also limit your winnings to about $20 worth of Bitcoins and place the wagering requirements at about x80, for good measure. Honestly, we rarely see no deposit bonuses in any online casino and when we do, they are usually nothing to brag about.
Free spins
Just like free spins in regular online casinos, free spins in Bitcoin casinos are obtained by making a deposit. Simply drop some fractions of Bitcoins, get some free spins and roll away at all the latest Bitcoin games. Don’t forget that just like all deposit bonuses, free spins also have their own wagering requirements for the winnings.
No-wagering bonuses
This one is a little tricky. A bonus without wagering sounds like a dream come true. Who wouldn’t want a bonus without the need to wager? However, as always, there is a catch. When you come across no-wagering bonuses, do take a look at the games they apply to. I guarantee that the games won’t be very friendly with their RTP (Return To Player) percentage. So, yeah, in Bitcoin casinos when you come across these no-wagering bonuses, check and see if it’s actually possible to win something from their games.
Reload bonuses
Your boy Derrick is a big fan of reload bonuses. So many casinos think that the welcome bonus is enough. Well, it ain’t enough, dawg. Once players exhaust the welcome bonuses, what then? That’s when reload bonuses come in. While they aren’t as generous as first deposit bonuses, they do get the job done at making existing players stay. Bitcoin reload bonuses work the same way. Simply deposit some crypto each week, and claim the juicy bonus.
What Are The Best Bitcoin Casinos?
You got your Bitcoins, you got the will and the guts, all you need is a casino, dawg. Fortunately, we Casino Bros have been busy for quite some time so we made a list of casinos that accept Bitcoin.
Bitstarz Casino
Easily one of the most reputable online casinos to date. Bitstarz Casino was one of the very first online casinos to implement bitcoin use and, my dawg, it shows. Heck, Bitstarz is so good that, even when we don’t have to work with it, we go and play a few games there just because of how much we trust this bad boy.
Bitkingz Casino
Fans of older JRPG games will feel right at home at Bitkingz Casino. Not only is this a great bitcoin casino for Bitcoin-specific games, but it also has one of the best loyalty programs we’ve ever seen. Progress through the loyalty program like you would in a video game, and collect fantastic rewards for every single loyalty level.
7Bit Casino
Another great pick for Bitcoin gambling. 7Bit Casino has everything you would expect from reputable Bitcoin casinos: games, bonuses and our trust. They also have these cool tournaments that they call races, which are actually a lot of fun.
Casino Rocket
Casino Rocket is a really nice online casino that also includes bitcoin games. While it isn’t primarily a bitcoin casino, it offers a lot of crypto payment options and crypto games to be considered one. A safe haven for your crypto gambling.
Fight Club Casino
Yeah, yeah, yeah… the first rule is don’t talk about the Fight Club Casino. While the name doesn’t have anything to do with crypto, its game library sure does. While being a great online casino, this baby will also accept Bitcoin and throw in a few good BTC games, just for good measure. A very reliable casino.
What is Bitcoin Wallet And How To Use It
Ok, dawgs, time to talk about crypto wallets. As we’ve already said, Bitcoins and other crypto are stored on electronic wallets that people usually install on their phones. There are A LOT of wallets out there and most of them act the same. To help you out, we got a couple of reputable ones to get you started.
Coinbase
Coinbase is one of the most reputable trusted exchanges for cryptocurrency in the world. It’s also one of the most popular crypto wallets, too. In fact, it’s so reputable that some Bitcoin casinos will only accept your crypto if it comes directly from Coinbase. Yeah, I don’t like it when online casinos are in cahoots with an exchange but, it is what it is. That aside, Coinbase will give you everything you need to get started with Bitcoins.
Electrum
While it doesn’t offer the option to buy or sell crypto, Electrum is one of the safest wallets out there. This baby is safe, it has built-in features that verify the addresses of your receiver. In layman terms, it may actually prevent you from sending your crypto to the wrong place. A great and super-safe wallet.
Edge
Edge is a really great all-in-one solution for all your Bitcoin needs. It’s super easy to download, set up and use. It’s also really secure and will even try to teach you about crypto. You will get a place to buy, sell and store your crypto with an edge so it’s a great place to get started with crypto.
Binance
Binance is becoming one of the most dominant crypto exchanges in the world. Not only does Binance give you a place to buy, sell, trade and store your crypto, they also have their own cryptocurrency called Binance Coin. Binance is super safe and secure but it can get annoying with its notifications that goad you into buying their Binance coins. If you can ignore the notifications, this is a fantastic all-in-one solution.
Exodus
Exodus is another all-in-one solution for all your crypto needs. We don’t use Exodus personally, but we’ve heard nothing but good news about it. What makes it stand out among other wallets is its simple-to-use UI and futuristic theme. A great pick if the above wallets give you any trouble.
How to Deposit and Withdraw Funds With Bitcoin
At this point, we are going to assume that you have a wallet and you have some bitcoins (or other cryptos on it). Time to talk about your first deposit, dawgs.
Making a Bitcoin casino deposit
Here’s a step-by-step guide on how to make your very first Bitcoin deposit.
- Log in to your favorite crypto or bitcoin casino and visit the cashier. Once you create your account (and use the no-deposit bonus, if there is one), you can navigate to the cashier/payment section to deposit your crypto.
- Select a cryptocurrency. You will normally have a few choices of cryptocurrency you can deposit (Bitcoin, Ethereum, Litecoin, etc.) so pick the one you have and want to deposit.
- Choose a crypto wallet. Now, depending on the type of online casino you come across, they may make you choose a wallet. Some casinos will accept crypto regardless of where it comes from but some may only accept certain wallets (Coinbase, Binance, etc.). So make sure you have the right wallet. Even if you don’t, you can usually just make the one that’s needed and transfer some funds to it.
- Enter the amount you want to deposit. At this point, you should get the crypto address of the casino. Now you grab your phone (or open your wallet on PC) and scan the QR code that the casino gives you (or enter the long address) and select how much you want to send. Make sure you send the right amount and don’t forget about gas fees.
Making a Bitcoin casino instant withdrawal
Withdrawals work pretty much the same way as deposits. You simply select the withdrawal option and you’ll get another QR code that you need to scan with your phone. Alternatively, you’ll have to copy/paste your wallet address. Normally, casinos will push the Bitcoin mining gas fees onto you but they will let you know ahead of how much it will be. Simply click submit and check your phone when you get a popup saying that you have received funds.
Most Popular Games at Bitcoin Casinos
We’ve already touched upon how Bitcoin games work. While at first glance they look the same as regular online casino games, the provably fair algorithm creates cryptographic proof of every move/deal/spin on the blockchain. In most cases, Bitcoin games consist of slots but there is also one other type of casino game that we haven’t mentioned yet.
Crypto live dealer games
If you are a fan of live dealer games, you’ll be happy to know that certain live dealer games don’t run on conventional currencies. Crypto live dealer games will have you wager your Bitcoins, Ethereum, Litecoin or any other cryptocurrency they might accept. Play your favorite live blackjack, roulette, baccarat or other types of table games using everyone’s favorite electronic payment system based on cryptography.
Mobile Bitcoin Casinos
You know, it would be really weird if Bitcoin casinos didn’t work on mobile phones. Just think about it. You got your wallet on your phone but the casino is all like: “No way, dawg! Get your butt on that PC!” Thankfully, just like any self-respecting online casino, Bitcoin casinos work great from a mobile casino. Most of them will run through a browser but a select few can even have their own apps. Either way, if you find a Bitcoin casino you like, you’ll find its mobile version, no problem.
Provably Fair Casinos
We’ve already talked about the Provably fair algorithm but let’s explain it a bit more. Normally, regular online casino games use a licensed algorithm system that ensures that every single move made is randomized by a Random Number Generator. Unfortunately, when players call “shenanigans” the algorithm won’t have much proof except the fact that it’s licensed. You shouldn’t really worry about it because if it was rigged, the casino wouldn’t be able to operate.
Now with provably fair, when the algorithm makes a move, it’s saved and stored on the blockchain. This means that you can go to the provably fair blockchain network and actually look at each individual move, provided you have the hash number. Not only that, but every legal entity can also check and make sure the algorithm does everything according to the books.
How to know if a casino is provably fair
The easiest way to know is to check a reputable source like ours. If provably fair games are involved we’ll be sure to let you know. The casino will usually have a provably fair sticker somewhere in the bottom too but those can be fake. Anyway, just do your homework or have someone do it for you, dawgs. Did we mention that we love doing your homework for you (wink)?
Summary: What Is Bitcoin?
Alright, dawgs, that about sums up the burning question: What is Bitcoin? Ultimately, Bitcoin is just another digital currency that you keep and use a bit differently with no banks involved. Sure it sounds a little scary on paper but it’s also a match made in heaven for online gambling. I guarantee that soon enough we’ll be seeing more crypto casinos and fewer fiat currency casinos, so you may want to consider getting into the game while it’s still fresh. As always, we got you, Bro!
