What you need to know about cryptocurrencies and gambling

The gambling sector hasn’t changed very much since the first bookmaker opened its doors over 240 years ago. You could say, as the old adage goes, that “if it ain’t broke, don’t fix it”. However, the gambling sector has only had the opportunity to grow horizontally, rather than vertically. Until now that is. So, what’s changed? Contents:

  1. What is cryptocurrency?
  2. What underpins user anonymity and fraud protection?
  3. In layman’s terms
  4. Why do we need cryptocurrency?
  5. Given that it’s a type of money, I can use it to buy stuff, right?
  6. How to strike gold with cryptocurrency
  7. How to get started

Things kicked off in 2009 with the birth of a new payment system, Bitcoin - the world’s very first cryptocurrency. In April 2011, $1 would buy you 1 Bitcoin. However, exactly 2 years later the value of 1 Bitcoin had risen to a cool $266. The value of this cryptocurrency depends on a number of factors and is in a constant state of flux. Selling one Bitcoin right now will fetch a healthy $10,000, which begs the question: how much will 1 Bitcoin be worth in a year’s time?   What’s Cryptocurrency? Cryptocurrency is a digital currency protected by cryptographic technology. These units of currency only exist virtually. Cryptocurrency’s underlying principles are as follows: anonymity for all users, fraud protection and freedom from regulatory bodies.  

What underpins user anonymity and fraud protection? Bitcoin consists of a number of interconnected blockchains. Each subsequent blockchain contains information about previous transactions, wallet numbers, private keys etc… Of course, the more transactions are completed, the larger and more complex a blockchain will become. Anyone who wants to create a blockchain can do so, provided they have a computer and internet access. Once it has been created, a blockchain should receive a confirmation from the system. What’s more, the cumulative computational power of the network is so high that it’s impossible to forge a blockchain.  

In layman’s terms To explain the ‘Bitcoin phenomenon’ in layman’s terms, we can use the example of rare paintings. Let’s say these paintings can’t be forged and you can’t go to exhibitions and buy this particular artist’s works. These paintings aren’t on display anywhere and the artist passed away a long time ago. The number of paintings left is limited and widely-known. As with any other scarce commodity, rare paintings have their value which rises in tandem with demand. Whilst it was easy for people to get their hands on the first paintings, this becomes more and more difficult over time. In order to find a painting that’s for sale, people need to come together and expend a great deal of time and effort. Then, they swap their ‘trophies’ for necessities and some even go so far as to open a gallery where they collect paintings in the hope that their value will continue to shoot up.  

Why do we need cryptocurrency? Cryptocurrency fulfils the same basic function as regular money i.e. a standard of value when buying and selling goods. However, there are a number of key differences: Firstly, cryptocurrency isn’t susceptible to inflation. Whereas the value of paper money depends on how much money is in circulation (i.e. if there’s too much paper money circulating, it will be rendered worthless), this isn’t an issue with cryptocurrency as the amount of crypto in circulation is known beforehand and cannot be changed. Secondly, cryptocurrency is free from the interference of regulatory bodies. Whereas Fiat currencies are under the control of the state that governs the territory where they are issued, cryptocurrency can be produced in any corner of the world, thus making it difficult to manage centrally. However, you may ask how a system which allows you to trace how many bitcoins have been sent and to which wallet they’ve gone to can guarantee user anonymity? Well, the answer is simple. Whilst this information is publicly available, you can’t find out exactly who each wallet belongs to. What’s more, anyone who wishes to set up a wallet can do so and no documents are required, just internet access.  

Given that it’s a type of money, I can use to buy stuff, right? How can I use a currency which I can’t hold in my own two hands you ask? Well, the answer is very simple, exactly the same way you use regular money. You can use cryptocurrency to buy anything from Fiat currency to a cup of coffee, as Bitcoin and other similar cryptocurrencies are being used in transactions more and more frequently. What’s more, cryptocurrencies were recognised as payment systems on a par with the Yen in Japan on April 1st 2017.  

How to strike gold with cryptocurrency Just like Fiat currency, you can make money with cryptocurrency in a number of ways, some of which are listed below: Mining - Completing transactions will require more and more computational power over time (as we remember both the number and complexity of blocks increases) and users who carry out these transactions and create a blockchain using their own hardware are rewarded in the form of coins. Of course, we know what to do with these coins. Trading - Cryptocurrency exchange rates can change like the direction of the wind, which presents an array of opportunities to strike gold. You can buy cryptocurrency when the exchange rate is low and cash in when it rises again. Of course, the higher the risk, the larger your profit. Gambling - Whereas it’s difficult to judge the risk involved in currency trading, it’s much easier to do so with your favorite team’s matches. You can always choose what you want to bet on, and the available odds will help you to do so. 1xBit has combined the best of the gambling and cryptocurrency worlds by providing extra convenience for its users and giving a fresh impulse for growth in the betting industry as a whole.  

How to get started To get started, all you need to do is set up a wallet for a cryptocurrency e.g. Bitcoin or Ethereum. We’ve already explained what to do next, so all that remains is to wish you good luck!

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