Bitcoin Gambling, Is It Safe For Everyone?

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Bitcoin - The virtual currency could very well change the shape virtual financial dealings in the upcoming years
Bitcoin - The virtual currency could very well change the shape virtual financial dealings in the upcoming years

THUNDER BAY – FINANCE – These days, even the least techno-savvy of people have at least heard of bitcoins. But hearing of them is not the same thing as understanding what exactly bitcoins are or how they can be used. Bitcoins arrived on the digital scene in 2008, the product of a group of anonymous computer programmers. The bitcoin program works as a peer to peer system, with the bitcoins as a reward system and payment method. These coins are considered to be the world’s first purely digital currency, with amount values determined by transacting parties.

Are Bitcoins Legitimate Currency?

The United States Treasury recognizes bitcoins as a “virtual decentralized currency”. This doesn’t mean that you’re going to have much luck if you announce at your local big box store that you’ll be buying that rake with bitcoins. But over 100,000 merchants worldwide now recognize and accept bitcoin as legal tender, selling products and offering services in exchange for them. It’s also legal in many countries to exchange bitcoins for conventional currency amounts.

Are Bitcoins Safe To Use And Accept As A Payment Method?

Parties interested in acquiring bitcoin should be aware that while it’s a perfectly legitimate currency, it has some vulnerabilities that they should be aware of. For example, while a conventional financial institution is generally used to convert currency to bitcoin, once that transfer is complete, its decentralized status means that bitcoin is not protected. This means that if bitcoin is stolen or is “lost” through botched transfer, the bitcoin recipient is out that amount, and currently cannot seek compensation.

Are Bitcoins Safe To Use And Accept As A Payment Method?

Parties interested in acquiring bitcoin should be aware that while it’s a perfectly legitimate currency, it has some vulnerabilities that they should be aware of. For example, while a conventional financial institution is generally used to convert currency to bitcoin, once that transfer is complete, its decentralized status means that bitcoin is not protected. This means that if bitcoin is stolen or is “lost” through botched transfer, the bitcoin recipient is out that amount, and currently cannot seek compensation. Parties also need to beware of scams in the industry, like the infamous Bitcoin code that was being advertised as a make money trading bitcoin robot in Denmark, promising extraordinary profits to their users and not fulfilling them.

Bitcoin And Gambling

One of the very first uses of bitcoin was as a “prize” in online gaming. So it would seem a natural choice for online casinos as well. While it’s gotten off to a slow start, these “bit casinos” are on the rise, with probably the best known among them being BitSaloon. Advocates for using bitcoin for online gambling point out the ease with which bitcoin can be converted to various denominations. They also feel that using bitcoin helps to make this type of gambling more transparent, as players can track casino activity from bitcoin sites, purportedly reducing the house edge.

So Is Bitcoin Gambling Safe?

While this form of wagering and payment may well be the rule for future online gambling, because of current haziness, experts recommend caution when playing at “bit casinos”. First, avoid ones with frequently changing addresses. Second, until gamblers are confident about a bit casino site, they should only wager a small amount of coin. And third, they should only use bit casinos with the most stringent security protocols. Run, do not walk from any site that has no security system in place, a very weak one, or one that changes frequently.

To summarize, while bitcoin has great potential in regards to online gambling, it is currently best used by those already familiar with the uses and weaknesses of bitcoin. Other players are advised to wait until bitcoin becomes both a more conventional and protected form of currency.