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Everything You Need to Know About Bitcoins

Bitcoins (BTC) are the most popular cryptocurrency online today. Designed to be completely anonymous, Bitcoins are created and stored entirely by computers on the Internet using the Bitcoin network. Simply put, there are no tangible bills, coins, or any other type of physical elements that can be identified as bitcoins, passed around between consumers and businesses when transactions are made – bitcoins are stored purely online as numbers on computers without the need for any physical bills or coins. All payments are done electronically between computers with internet access, from one bitcoin “wallet” to another. Since bitcoin transfers occur from one user to another, no intermediary organizations like banks are involved, so there are no monthly payments or expensive banking fees associated with the use of bitcoins. Multilayered security methods have been implemented into Bitcoins to guarantee safe and clean transactions, preventing various forms of fraud and risks from affecting Bitcoin users.

More vendors are accepting Bitcoins as a legitimate method of payment each day and the markets are quickly realizing how Bitcoins can have a serious impact on how we trade goods on a daily basis. The growth of Bitcoins is steadily rising and as more and more people and organizations begin to accept the cryptocurrency as a viable method of payment, the more value Bitcoins will gain. While some may perceive Bitcoins as a volatile currency suffering from inflation spikes, it is designed to be stable in the long run. What we can all agree on is that Bitcoins are here to stay and as time passes, the more predominant it will become.

Before we get you started on how to acquire your own Bitcoins, we’ll fill you in on how it all works. While the concept of Bitcoins may seem daunting at first, they are actually quite simple to understand once you can grasp the fundamental concepts behind them.

Bitcoin Mining

Bitcoin mining is the key to understanding how Bitcoin works. Bitcoin miners are electronic devices that use specialized hardware and software to both approve transactions between users and secure the peer to peer bitcoin network. These miners additionally use their computing power to solve a mathematical algorithm, and upon solving the algorithm are issued new bitcoins to introduce to the market. Every time the algorithm is solved, a brand new and more complex algorithm is introduced, requiring more computing power to solve, thus reducing the rate in which bitcoins are created.

Releasing new bitcoins by resolving the algorithms provides a monetary incentive for more miners to take part in the bitcoin community. This is also a superior method to resolve the current issue we see every day in modern currencies known as inflation. Requiring miners to solve more difficult algorithms to unlock new bitcoins ensures that the rate in which bitcoins are introduced never increases and that the influx of new bitcoins never gets out of hand. What this means is obvious: the time to invest in bitcoins is now. In a few years, the price of bitcoins will increase dramatically and the acquisition of bitcoins early will bring profitable long term value.

In order to approve transactions, bitcoin miners may charge a small fee, often a few pennies. However, these marginal fees are a fraction of what traditional banks charge for wire transfers and occur faster, often within seconds as opposed to hours and days. This is where bitcoin shines above the rest and gives it a competitive edge over other services like PayPal or credit card companies.

Security of Bitcoins

Many people tend to stay away from making purchases online because they are concerned about the safety of spending their hard earned money in cyberspace. Bitcoins are designed in a fashion that reduces the surface area of security mitigations unlike any other payment method available today.

The several features integrated into the cryptocurrency are designed to keep your money safe. The main security features are:

  1. Secure and private transactions:Using a public and private key cryptography service, transactions are kept secure in the exact same method in which SSL works when you log into sites such as your bank or sites that contain sensitive data. Nobody can read the data being sent if they are listening to your computer “talk” to another computer across the bitcoin network because it is encrypted using this method.
  2. Double Spending and Race Attacks:This occurs when somebody uses the exact same bitcoin and sends it to multiple people at once, tricking the network into processing two transactions with the same bitcoin. The network is smarter than this and prevents this type of activity from occurring by recording all transfers in a ledger known as the block chain. This ledger is visible to all users and guarantees that once a bitcoin is spent, it can’t be spent again from the same user.
  3. Block ledger modification:Remember that ledger we just mentioned? You can’t edit it. By preventing people from manipulating the ledger, you prevent people from manipulating the network. The ledger has a feature implemented in it referred to as a hash, which is a generated number that is created based on the information the ledger receives. If you change even a single bit on information, the hash changes dramatically. This security method is popular throughout the IT industry and is arguably one of the most effective methods of keeping the network safe as it prevents users from modifying sensitive data.
  4. Anonymous Users:Every bitcoin user is completely anonymous online. Nobody knows who you are, your name, and your address are not involved with bitcoins in any way; unlike credit cards or PayPal funds, this information can’t be used against you if somebody is able to discover your online identity. While your BTC transfers appear in the ledger, your identity is seen as a random string of numbers and letters, masking your identity to the general public.

What does this all boil down to? Privacy, security and peace of mind. The creators of Bitcoin wanted to create a currency that was secure, not just from external threats, but from any form of exploitation, internal or external. No centralization means no inflation manipulation and cheap fees for users. Advanced security methods are implemented to keep all transactions secure and even though they’re made public on the block chain ledgers, it’s impossible to find out who you are. There is seemingly no method known to man at this stage of Bitcoin development for any level of threat to Bitcoin users and it seems likely to stay this way into the foreseeable future.

This is why we, at mBit Casino, opted for Bitcoins – because we wanted to offer you a discrete yet highly secure gambling experience. We value our players, their privacy, and their security.

Please note that the materials here serve an informative purpose only, and are meant to help you make an informed decision in regards to purchasing, using and storing Bitcoins. mBit Casino is not affiliated with any of the websites or products mentioned within the content, so we are not to be held responsible for any losses or issues you may encounter while using the mentioned websites or products.

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Getting Started With Bitcoins

So you understand how Bitcoins work, how they’re secured, and how acquiring BTC sooner rather than later can bring you exponential profits. Now we’ll discuss how you can get started and what you can do to maximize your Bitcoin experience.

Before you get started buying Bitcoins, you need to set up a Bitcoin wallet. This is essentially your Bitcoin bank account and will house all your Bitcoins while also being your method of sending and receiving payments. There are several types of wallets available, each with their own benefits and drawbacks. Pay close attention to the following and decide which method is best for you.

One critical consideration you need to ponder is that your Bitcoin wallet needs to be backed up on a regular basis. This can be done manually or you can allow an external organization take care of this for you – depending on your own confidence using and understanding computing technologies. When a bitcoin wallet is lost or corrupted, the bitcoins it contains are lost forever. If you’re okay with letting somebody else handle this for you, then perhaps a cloud wallet is the way to go. If you want to handle this responsibility yourself, you can but you need to be vigilant in backing up your wallet in case anything goes wrong. There are also hardware wallets available, using a specialized USB drive to store your bitcoins. This is the safest method as accessing your wallet requires access to the USB drive. Using this guide you will discover which option will suit your needs best.

Cloud Wallets

Cloud wallets are recommended for users who have little experience or knowledge of modern computer technologies, or for those who want an easier method of storing Bitcoins. When you use a cloud wallet, you trust an external organization to maintain and secure your Bitcoins. This means you are not handling the primary responsibility of securing and backing up your Bitcoin wallet.

When using a cloud wallet, you need to make sure that you are using a 2 factor authentication by email. This means that, in order to access your wallet stored on the cloud, you will need to also be able to access your email. Using a different password on both your email and wallet will help maximize the security of your wallet. You also need to make sure that you are still creating your own backups, in case something happens on the cloud’s side of things. While we have personally recovered our own wallets using the backups provided to us by our cloud wallet provider, it’s definitely best practice to make sure you have a backup of your own wallet just in case.

Software Wallets

The primary benefits of using software wallets are both security and control. Since you are responsible for your own wallet and aren’t handing over the responsibility of wallet security to an external source, this gives you a lot of options to not only maximize and utilize every additional security method available but also back up your own wallet manually to a USB drive. Be careful when choosing this option – if you lose your wallet, it’s gone for good (along with all of your bitcoins). However, if you’re tech savvy and thrive under the idea that your wallet couldn’t possibly be more secure and that you know how to properly backup, store and maintain your wallet, this is the option for you.

Hardware Wallets

Hardware wallets operate as intermediaries between you and your wallet, offering a greater protection scheme than standard software and cloud based wallets. The only downside to hardware wallets is that they cost money, but hey, you spend money on a good wallet to store your credit cards, so why not spend some money on a wallet to handle your digital currency as well? Hardware wallets are physical devices which store your Bitcoins offline in USB devices and work in tandem with your wallet. In order to send payments from your wallet, the physical hardware is required along with a password, incorporating an additional level of security for your Bitcoins. These devices can’t be infected with viruses and other malware, and implement cryptography to privatize all data on the device. The operating systems of some of these devices are completely open source, meaning anybody can look at the code and verify that it does exactly what it’s designed to do with no tricky exploits hidden within. Be warned, however, that losing your hardware wallet will likely result in the loss of your bitcoins so take extra care if you decide to purchase one.

Some recommended hardware wallets are:

  • https://www.bitcointrezor.com
  • http://bitcoincard.org

Choosing Your Wallet

Now that you understand the differences between a cloud-based, hardware-based and software-based wallet, you can make an informed decision about which option best suits your needs. While we’re not here to promote any specific wallet method as individual needs may vary, we do encourage you to research each wallet method or provider thoroughly. For a comprehensive list of wallets, please visit https://bitcoin.org/en/choose-your-wallet

Please note that the materials here serve an informative purpose only, and are meant to help you make an informed decision in regards to purchasing, using and storing Bitcoins. mBit Casino is not affiliated with any of the websites or products mentioned within the content, so we are not to be held responsible for any losses or issues you may encounter while using the mentioned websites or products.

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Where Can I Buy or Sell Bitcoins?

Bitcoins can be acquired from many different places. Once you’ve set up your wallet, you will need to load it up with Bitcoins to spend or invest in. The best place to purchase BTC is from online exchanges. Using an exchange may require either using a wire transfer from your bank to the Bitcoin owner’s bank, credit or debit card purchases, or even an in-person cash exchange.

Before you purchase your Bitcoins, you need to make sure that you are aware of the current exchange rates. Since Bitcoins fluctuate in value like any other currency, make sure that you are up to date on the current rates.

Online Bitcoin Exchanges

Arguably the easiest and most straightforward method of purchasing BTC is from online exchanges. Using an online exchange offers many methods of payment from MoneyGram’s, Western Union, cash, wire transfers, Money Orders or credit and debit cards. As always, make sure the site and users are reputable in order to maximize your experience. Usually you will find the current exchange rates or prices listed directly on the site.

To find out how to buy Bitcoins in your country, please visit: http://howtobuybitcoins.info

Other reputable sites are:

  • https://www.quadrigacx.com (Canada)
  • https://cex.io (US and UK)

Naturally there are many more options available depending on your current country of residence and you may need to research a local exchange that operates in your nation that accepts payment methods you are able to fulfill.

In-Person Bitcoin Purchases

So you’ve decided to purchase your Bitcoins in an in-person exchange for cash. While there’s nothing wrong with that, there are certainly some things you need to take into consideration. First and foremost, make sure the user you are buying from is reputable in order to prevent personal injury and theft. Secondly, make sure the place you meet is both public/safe and has internet access as the seller will need to use the internet to send you your BTC. The vast majority of users who sell in person are legitimate, but erring on the side of caution has its advantages.

We also want to remind you that in-person BTC purchases may additionally be subject to fees and some sellers may charge up to 5% of the transaction to cover usage of their personal time.

Bitcoin ATMs

While this is a newer concept, Bitcoin ATMs are becoming increasingly popular. They operate similar to an in-person exchange but require a smart phone with software installed from your wallet provider. You insert your cash into the Bitcoin ATM and use your mobile application to scan the QR code, matching your wallet to the transaction. Shortly after, the BTC will appear in your wallet.

To find a local BTC ATM you can use Google or visit:

http://www.coindesk.com/bitcoin-atm-map

Be aware that some BTC ATMs charge an exchange rate anywhere from 3-8% on top of the standard rate.

Preventing Fraud

Be careful when using your credit card or PayPal to purchase Bitcoins. These transactions can be exploited using “chargebacks”, meaning that somebody can cancel the exchange effectively keeping both the money and the Bitcoins. This method is usually not used since it is well known to be exploitative. Also make sure that you are purchasing from a reputable vendor with solid reviews so that you can guarantee a safe transaction. Researching the site you use is also a necessity to make sure you are making a legitimate purchase. While purchasing BTC is generally safe, it is always best to be on the side of caution.

Conclusion

Hopefully you have a general understanding of how Bitcoins work, how to properly store and purchase them. If not, you can always find other sources of information like Bitcoin sites, forums, Google and YouTube. Joining the world of Bitcoins is an amazing experience and opens the doors for the acquisition of many new items or services. As the Bitcoin community continues to grow, so will the value of your Bitcoins. The best time to start collecting BTC is now, and we hope this guide has given you a helping hand in getting started.

Please note that the materials here serve an informative purpose only, and are meant to help you make an informed decision in regards to purchasing, using and storing Bitcoins. mBit Casino is not affiliated with any of the websites or products mentioned within the content, so we are not to be held responsible for any losses or issues you may encounter while using the mentioned websites or products.

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Typical Questions and Answers for New Bitcoin Users

Bitcoin is a revolutionary approach to currencies. It is one of the first mainstream examples of cryptocurrency, which is a digital currency based on the principles of anonymity, security, and privacy. These are all highly desirable traits when it comes to trading in today’s modern world that’s full of examples of government interference and increased taxation due to e-commerce. So, what are some of the typical questions that newcomers typically have of Bitcoin? Let’s review two of the most popular ones:

A Simple Way to Explain Bitcoin

Bitcoin in its most basic form is a type of money. It’s one of the first decentralized forms of currency that isn’t controlled by any one single entity: it is something that’s made by the people, for the people. All over the world, users are currently trading using Bitcoins and these trades exceed $100,000 USD on a daily basis. There are no middle men, no credit card companies, and no fees associated with its use.

The network itself is made up of users who directly interact with one another in the trading process. There is no bank or payment processor to serve as a middle man, which ensures Bitcoin will remain a secure and free way of buying and selling on the Internet.

Bitcoin also benefits from a higher level of efficiency against conventional means of trading on the Internet. Because users are able to cut out the middle man, there’s no way of buyers reversing their Bitcoins back into their wallets like they’d be able to by filing a chargeback claim with their credit card issuers. While this ensures transactions are relatively flawless, it also puts a high level of personal responsibility onto users. Because merchants are in complete control when it comes to offering refunds, buyers need to know who they’re dealing with and ensure they’re reputable traders.

Explaining Mining

Bitcoin is understandably full of “bitspeak” terms that are unique to the platform. However, one of the most commonly encountered terms is “mining” because it is how the network actually operates. Instead of having a central authority issuing Bitcoins and controlling the entire supply, the “work” is spread out across the network. Bitcoins are generated by miners who “mine” Bitcoins for their own wallets in order to release them into the network.

Miners do this by collecting transactions on the network into bundles known as blocks, which are then strung together into one record known as the block chain. This doesn’t permit conflicting transactions and ensures users cannot use the same Bitcoins for two different transactions. The block chain itself lets users know that they’re in good hands when it comes to dealing with a particular vendor and that the transaction can be trusted.

Conclusion

These are by no means the only questions that are addressed through various sources on the Internet. However, they stand out as two of the leading ones that users most often ask. Other questions and answers are readily available through various sources: including the ones contained within this website.

Please note that the materials here serve an informative purpose only, and are meant to help you make an informed decision in regards to purchasing, using and storing Bitcoins. mBit Casino is not affiliated with any of the websites or products mentioned within the content, so we are not to be held responsible for any losses or issues you may encounter while using the mentioned websites or products.

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Bitcoin Blackjack

Blackjack is one of the most prevalent casino games that exists today. Founded as an offshoot of a Spanish game known as “twenty-one”, blackjack has been around in some form or another since the 17th century. The rules and gameplay are simple to understand and follow, and that is one of the major reasons behind why blackjack has remained a popular game for centuries.

Blackjack Rules and Gameplay

Blackjack is orchestrated by a dealer who sits across a table consisting of anywhere from 5 to 7 spots. With that said, a hand of blackjack is able to be executed with solely the dealer and one player. Once a player has taken their position at the table they are able to place a wager in whatever denomination they choose. It must be noted that some tables carry a minimum bet that requires any wager to be no less than a specific amount.

Once players have taken a position and placed their wagers, the dealer deals cards from left to right until everyone has two cards in front of them. The dealer is also given two cards, however only one of them is visible while the other card, the hole card, is placed face down. The dealer will only immediately show both cards if the two cards create blackjack.

After everyone has cards in front of them, action ensues from left to right. Players are now tasked with putting together a hand that is better than that of the dealer’s but also less than a total of 21. When it is a player’s turn to act, they can either hit or stand. Hitting is a blackjack term for opting to be dealt another card while standing means that a player is content with the cards in front of them and thinks that they are better than what the dealer possesses.

A player may hit as many times as they would like so long as the total of their cards remains at 21 or less. The second a player’s hand exceeds 21, however, they are considered to have busted and will lose their wager. Determining the score of a hand is as follows:

  1. Numbered cards are worth their numerical value
  2. Face cards (Jack, Queen, King) are worth 10
  3. Aces are worth 11 or 1; the actual value is determined by what works best for the hand you have in front of you

It must also be noted that immediately following cards being dealt, a player may have additional options besides hitting and standing. Other options are as follows:

  1. Double: A player who chooses to double will double their wager, take one more card, and finish their hand.
  2. Split: In the event that a player is dealt two cards of equal value, they may choose to split the hand into two separate hands. If a player opts to split, they will be forced to place a second wager equal to the amount of the first. The player then plays out both hands individually.
  3. Surrender: Some blackjack games allow you to surrender. By surrendering, a player is admitting that their two cards do not create an ideal hand and are opting to forfeit the hand in exchange for 50% of their wager being returned.

Blackjack Tips and Strategy

Unlike games that rely on skill, such as poker, blackjack has a fairly straightforward strategy that serves a player best when it is memorized to completion. When it comes down to it, there are correct and incorrect moves in a game of blackjack, and following these rules will lend you a better chance at winning a hand without busting.

Below is a chart aimed at giving you a better understanding of what moves you should make as well as when you should make them. Before getting into that, it is important to explain the difference between a hard and soft hand. For a hand to be considered hard, it means that there exists no Ace, or contains an Ace that is forced to act as a single point to prevent the hand from busting. A soft hand is one that contains an Ace, but at that point in time the Ace can act as either 1 or 11 without causing the hand to bust. In the chart below, an H indicates that a player should hit, a D signals it is best to double down, an S signals that it is wisest to stand. When it comes to splitting or not splitting a hand, a Y will indicate that it is best to split while an N indicates that a split may not be the best move to make.

Player Hand Dealer’s Face-Up Card
HARD 2-6 7-A
4-8 H H
9 D H
10 or 11 D if greater than dealer
12-16 S H
17-21 S S
SOFT
13-15 H H
16-18 D H
19-21 S S
SPLIT
22, 33, 66, 77, 99 Y N
88, AA Y Y
44, 55, 10-10 N N

Playing Blackjack with Bitcoins

For years now, players have not had to make the trek to places like Las Vegas and Atlantic City because online blackjack has afforded them the ability to play blackjack for real money without ever stepping foot outside their home. An even newer way to play blackjack online is by playing with the cryptocurrency Bitcoin. Though a somewhat new form of currency, it is taking the world by storm and being utilized more readily on a daily basis across the United States and the world.

The online casino industry has also begun utilizing bitcoins, and now you can play blackjack online without ever having to wager in USD, Euros, or any other currency. There are many reasons why people would opt to play bitcoin blackjack over the traditional fiat currency form of the game, but the biggest reason is the anonymity and security offered by bitcoin transactions. mBit casino is one of a handful of online casinos offering bitcoin blackjack, and boasts an incredibly user-friendly interface. What’s more, in their short time in existence mBit has gained a strong following and has made it clear that they are an industry leader.

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Bitcoin Roulette

Beloved around the world, roulette got its start centuries ago in France. Though Blaise Pascal, in his search for a perpetual motion device, is thought to have conceived the very first roulette wheel in the 17th century, the game did not become more well-known until about 100 years later. Since the 18th century the game of roulette has not changed much at all, and some historians hold that the modern-day version of the game has been played since as early as the 1790s.

Roulette is now hailed as one of the most popular casino games, and this is something that can widely be attributed to the rise of online casinos. Having the ability to play without being forced to travel to casino resort cities, the online game has been and will continue to change the way in which people gamble.

Roulette Rules and Gameplay

The game of roulette pits a player against the house, who is represented by the table’s dealer. Played on a wheel consisting of 37 (European/French) or 38 (American) numbered and colored pockets, players place wagers on where they think the dealer-spun ball will end up. There are a number of different bets you can place, each of which have their own odds and likelihood of occurrence. When it comes down to it, however, the game of roulette is largely rooted in luck. That is, there is little you can do to influence the outcome of an individual spin of the wheel. Before delving deeper into the game itself, it is important that we note the differences between European and American roulette. The biggest difference in these two varieties is not the gameplay, but rather the wheel upon which the game is played. An American roulette wheel consists of numbered pockets 1-36 as well as a pocket for 0 and another pocket for 00. The European roulette wheel, on the other hand, is composed of numbered pockets 1-36 and solely the 0 pocket. At many online casinos you may find that American roulette is the most popular option and often the only option; after all, the house edge is higher in American roulette.

Payouts

Understanding the payouts behind specific roulette wagers will help you attain a better grasp of what bets are more likely to produce a winner. The first type of bet is one where a player wagers that the ball will end up in a specific, numbered pocket. For example, a player may wager that the ball will end up in the 6 pocket. If this wager is placed and the ball does, in fact, end up in the 6 pocket, the player in question will receive a payout of 35:1. A split, or wager on two numbers, pays out at 17:1, a street (3 numbers) at 11:1, a corner (4 numbers) at 8:1, first five at 6:1, and six line at 5:1.

A wager on the first (1-12), second (13-24), or third (25-36) set of twelve pays out at 2:1. Finally, there are a handful of wagers that pay out at 1:1. These bets include the first (1-18) or second (19-36) set of 18 numbers, a wager on whether the ball will land on and even or odd number, and, the color of the pocket in which the ball lands (black or red).

As you can clearly see, there are quite a few different wagers that can be placed on a single spin of the roulette wheel. Naturally, people have dreams of hitting a single number wager and walking away 35 times richer than they were, but the more sensible and conservative bettors realize that the odds are more favorable when it comes to an even/odd or color bet. There is no single correct strategy, though thousands of people have attempted to come up with their own foolproof ways of winning at roulette.

Roulette Tips and Strategy

To reiterate a point that has already been made, it is crucial to understand that there is nothing one person can do to directly influence the outcome of a roulette spin. Though many people have tried to come up with guaranteed strategies, the reality of the matter is that one cannot do this without out and out cheating. With that said, there are a few strategies that some people buy into and claim to have benefitted from.

The oldest strategy, and one you will hear more than any other is the doubling up or Martingale system. Basically, the Martingale strategy forces one to subscribe to the belief that, if you double-down on every losing bet, you will come out on top in the long run. For example, if you place a $5 1:1 wager on a spin of roulette and lose, Martingale holds that your next wager should be $10 in order to make up for the previously lost $5. If you win the second spin it will be as if you had never lost the first. Unfortunately, Martingale is not foolproof in that there is nothing out there that says a single person cannot lost 10, 20, or even 100 spins of roulette in a row. If you stack up 10 losing Martingale bets in a row, it is likely that you will be forced to hit an ATM in the immediate future. Another facet of Martingale is to cut in half every winning wager.

There are plenty of other roulette strategies, but many of them are geared towards someone playing in a brick and mortar casino, not online. These strategies include attempting to find a faulty wheel, playing hot numbers, or playing numbers that have not hit in quite some time. All of them have their believers, but all of them have also been disproved. When it comes down to it, Roulette is majorly a game of pure luck.

Playing Roulette with Bitcoins

Online casinos have been a popular alternative to brick and mortar establishments since the early 2000s, but since then the offering has plateaued a bit. Though thousands of casinos exist online, they all offer the same basic games, utilize the same currencies, and generally seem to be stuck in time.

Thankfully, some change was injected into the online casino industry in the form of Bitcoin casinos. Bitcoin, a <Link to=”/bitcoin-guide/ethereum-online-casinos”>new cryptocurrency</Link> that exists solely online, draws in customers who have grown tired of having to deal with multinational financial institutions and governments who constantly manipulate the value of fiat currencies. The safe, secure, and now proven currency is paving a new way to gamble online that does not force one to give up their personal information and is also free from the intrusive eyes of law enforcement.

mBit casino is just one of many online casinos that have come into existence in recent years. They offer a wide variety of games, including both American and European versions of roulette. Offering quick bitcoin deposits as well as withdrawals, mBit has gained a large following in a relatively short period of time. Their user-friendly interface, wide selection of games, and responsive customer service are all contributing factors to this site’s rise to prominence.

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Bitcoin Video Poker

Video poker is often lumped in the same category as slots, but the two are quite different in many different ways. First introduced around the same time as the first personal computers, original video slot games were crude compared to what you will find in casinos today. At its core, video poker is a nice mix between traditional slots and a traditional poker game. Of course, one of the major exceptions is that video poker is played with just one person as opposed to the community of players you find with games like Omaha and Hold’em.

Though the name video poker may lead one to believe that this is a game of skill, it really isn’t. Much like a slot game, the outcome of video poker is entirely random and unpredictable. No matter how many different betting schemes or logical philosophies you attempt to pursue, there is nothing you can do to directly influence the outcome of a video poker hand.

Rules and Gameplay

There is not a lot that goes into video poker, as the game is quick, straightforward, and very easy to understand. Once a player selects their desired wager amount, they will then be dealt 5 cards picked at random. Of the 5 cards that are dealt, the player selects two that he or she wishes to keep and the other three cards will be discarded.

In the place of the three discarded cards, the game will assign three more cards to complete a player’s 5-card hand. Depending on what is showing on the screen once a 5-card hand has been drawn, the player will be paid out or will lose their wager.

Video Poker Payouts

Jacks or Better is by far the most pervasive video poker game you will find, and is also the game we will be referencing in this section. As was stated above, the basic goal of the game is to be awarded the best possible 5-card poker hand. The following table will offer a bit of insight as to what the payouts are for all hands you may be awarded.

Hand Payout Probability
Royal Flush 800:1 .000025
Straight Flush 50:1 .000109
Four of a Kind 25:1 .002363
Full House 9:1 .011512
Flush 6:1 .011015
Straight 4:1 .011229
Three of a Kind 3:1 .074449
Two Pair 2:1 .129279
Jacks or Better 1:1 .214585
All Others 0 .545435

There are other variations of video poker that you will come across, but Jacks or Better is by far the most popular version.

Video Poker Tips and Strategy

Because video poker is at a level of randomization similar to slot games, strategies are good to talk about but will more than likely not result in you becoming a video poker millionaire. When it discuss strategies, they are more aligned with you doing more damage control than anything else.

The biggest piece of advice that one can be offered is that you should set a budget before you ever sit down to play video poker. Because of how fast-paced this game can be played, people can lose hundreds and even thousands of dollars without too much effort at all. By setting a strict limit of how much money you are willing to part with, you will do well to avoid falling into the money pit.

Another massive piece of advice great not only for video poker, but most other casino games as well, is to avoid drinking alcohol when you play video poker. The fast-paced nature of the game coupled with its simplicity can lead an inebriated person to thinking that they can win money back, and then some, if only they keep playing. While it is definitely possible to get lucky and earn back your losses, you much more often see people lose their shirt before this ever happens. If you scour the web, you are sure to find strategy after strategy that people have come up with to win at video poker. These are all great, but at the end of the day, even the most well thought out strategies improve your chances of winning a single video poker hand by marginal, negligible amounts.

Playing Video Poker with Bitcoins

In recent years, there have been many advances pursued by the online casino industry, and one of those advances is the shift away from traditional, fiat currencies. Instead of the US Dollars and Euros that many people have grown accustomed to playing and wagering with, a new form of cryptocurrency, a currency that only exists online, has been utilized by new bitcoin casinos Bitcoin is becoming the preferred currency for a number of reasons, but mostly due to the safety and security offered by their transactions. No longer do players need to go through major financial institutions and the red tape of governments in order to make wagers. Along with the introduction of bitcoin came bitcoin casinos. Now, there are many of these sties online offering your favorite casino games for real money. mBit is just one bitcoin casino, but it serves as a model for what all bitcoin casinos should aspire to be. With an expansive offering of games, great graphics, and features not even offered by online casinos that have existed for more than a decade, mBit is way ahead of the game.

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History of Bitcoins

Bitcoin (BTC) is a cryptocurrency, which means it is not reliant on any centralized regulating authority. It was created in November 2008, at the tail end of the financial crisis, by Satoshi Nakamoto in a paper titled “bitcoin: A Peer-to-Peer Electronic Cash System.” In the paper, Satoshi Nakamoto, which is likely a pseudonym, described an ideal currency which involved a system of electronic transactions that did not rely on trust. Two months later, in January 2009, would be the advent of the bitcoin. With the release of the first bitcoin client, the bitcoin network came into being. Satoshi Nakamoto was the first to “mine” bitcoins; this first bitcoin retrieval is known as “The Genesis Block”. One of the first ever transactions using bitcoins involved two Papa John’s pizzas for 10,000 bitcoins negotiated in the bitcointalk forum.

Historically, bitcoins have been a secure, reliable method for peer to peer transactions. One notable vulnerability occurred in August 2010. A loophole was present in the system which allowed users to bypass bitcoin restrictions and create an indefinite quantity of bitcoins. Over 184 billion bitcoins were created in such a manner, and were divested to two addresses within the network. Soon thereafter, the fraudulent transaction was detected and eradicated from the bitcoin transaction log. The bug was then fixed with an updated version of bitcoin protocol. Since its creation, this was the only major security breach to ever impede the credibility of the bitcoin.

In 2012, bitcoin was featured on an episode of “The Good Wife”, in which Jim Cramer, host of CNBC’s “Mad Money”, said:

  • “There’s no central bank to regulate it; it’s digital and functions completely peer to peer”

Jim Cramer’s comments, despite them being in a fictional TV show, are quite accurate. Bitcoins, which were created at the end of the internationally detrimental financial collapse of 2008, quickly raised in popularity and value. Based in the underground, many began accepting bitcoins as a legitimate, valued form of currency. Wikileaks among other organizations began to accept them as a form of donation. Processors like BitPay reported over 1,000 viable merchants that accepted bitcoin by 2012. Coinbase, another bitcoin-based payment processor, reported selling 1,000,000$ worth of bitcoins in a single month when a bitcoins was valued around 22$. One of the greatest advantages to this form of currency was its lack of regulation, and thus taxability.

In the United States, the Financial Crimes Enforcement Network (FinCEN) created guidelines regulating “decentralized virtual currencies”. This was directly aimed at currencies such as bitcoin, and officially classified American bitcoin miners (generators), who then go on to sell these bitcoins, as “Money Service Businesses” (MSB), which rendered them liable to register for the various legal obligations that coincide with MSB’s. This is one of the first instances in which these currency vendors were regulated by government, which is the antithesis to the entire philosophy of cryptocurrency. This only applied to those who would sell the mined currency, so peer to peer transaction was not included in this regulation.

On May 15, 2013, Mt. Gox, a bitcoin exchange involved with various customer accounts, had some of their accounts seized by FinCEN due to being unregistered money transmitters. Soon after in June 2013, the US Drug Enforcement Administration accounted bitcoins as a seized asset during an audit. In August 2013, the Eastern District of Texas of the Fifth Circuit deemed it a “currency or a form of money”, which rendered the currency to be subject to legal jurisdiction. The Finance Ministry of Germany deemed it a “unit of account”, which made it technically a financial instrument, but not necessarily a functioning currency. One of the largest seizures of all time occurred when the FBI took over the assets from the underground website “Silk Road”; they seized 26,000 BTC from owner Ross William Ulbricht.

Robocoin and Bitcoiniacs, two BTC companies, created the world’s first bitcoin ATM on October 29, 2013 in Vancouver, Canada. In November 2013, Nicosia University in Cyprus was the first school to accept BTC for tuition costs. The university’s chief financial advisor deemed it the “gold of tomorrow”. Las Vegas soon followed suite and many of their casinos, such as Golden Gate Hotel and Casino, began accepting BTC throughout the premises.

The growing popularity of BTC is undeniable. It is currently worth around 430$. Here is a graph of its worth over time, in which it nearly reached 1200$ in late 2013. In 2015 it steadily raised up until present day. For peer to peer transactions, BTC is one of the preferred currencies. Although, it has had its volatile moments, meaning that its price in USD can change dramatically over a short period of time.

In April 2013, payment processors such as BitInstant and Mt. Gox experienced transaction delays due to an exceeded capacity, this resulted a drop from 266$ to 76$, upon satisfying the required capacity, BTC rose back up to 160$. All of this was within 6 hours. This volatility has become rare in recent times, mostly because technological hiccups are less common. Despite this, there is still minimal regulation effecting this currency, making it quite unpredictable.

On June 24, 2015, NASDAQ, the second largest finance stock exchange in the world, agreed to begin trials on a Private Market for trading pre-IPO company shares backed by blockchain. NASDAQ will begin issuing, managing, and cataloging transactions for privately issued shares working with an application program interface (API) developing chain. This increases the scope, value and perception of BTC’s blockchain technology; implying that various financial entities will begin researching this method of payment. This strongly insists that commercial banking, credit card companies, and venture capitalists will be researching the potential financial use of bitcoins.

The history of BTC has been exhilarating, and quite the roller coaster ride. Despite its dramatic ups and downs, the volatility of bitcoins is subsiding, making it a stable, yet profitable, venture to pursue. Be sure to make knowledgeable decisions when delving into the bitcoin market. The ever-expanding history of BTC is only surpassed by its exciting, lucrative future.

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How to Acquire, Sell, and Store Bitcoin

Acquiring, selling, and storing bitcoins (BTC) are three of the most basic, yet essential aspects to familiarizing yourself with the workings of this multi-faceted cryptocurrency. This article will address where bitcoins come from, along with where to buy, sell and store them.

BTC (bitcoins) were originally created by Satoshi Nakamoto, who to this day remains an anonymous, somewhat legendary figure. What started out being worth less than a penny, has now become worth hundreds of dollars, depending on the market. This digital cryptocurrency is acquired in various ways.

Acquiring Bitcoins

  1. You can receive them as payment for merchandise or services
  2. You can purchase them directly from the bitcoin exchange
  3. You can exchange bitcoins locally at www.localbitcoins.com
  4. Finally, you can earn bitcoins through a technique called “mining”

Many people are already buying and selling with BTC, so one of the easiest ways to start acquiring bitcoins is to sell or give a service to someone who is purchasing with bitcoins. This is a great way to get your foot in the door. Especially if you are selling an item or service, which you are likely up-charging for profit so you will receive more bang for your buck from the get go. This has many advantages that cannot be matched by conventional currencies. Once you begin to collect a stash of bitcoins, you can use them for purchases or sell the BTC directly for cash.

With the proper knowledge, one can have a lucrative endeavor by mining bitcoins, but it is a rather complex process for beginners. Paper money involves centralized government entities to print and distribute currency, whereas BTC has no centralized control system. Bitcoin mining involves special software that allows miners to solve various math problems from which they are then awarded bitcoins in exchange for their work. This provides a strong incentive for people to mine, as well as requiring a logical thought process to acquire this <a href=”/bitcoin-guide/how-to-acquire-sell-and-store-bitcoins”>valued cryptocurrency</a>. There is all sorts of hardware that is purposed for bitcoin mining as well. Despite having the ability to mine bitcoins, this is not often the most lucrative way to profit from investing in bitcoins. The electricity required to run this hardware is in the TH/s (Terra Hertz per second) range. This is a lot of money that you will be pending on electricity, without as much of a profit if you were to have just bought bitcoins and wait for the price to rise. Of course, this has only been true in recent history, and is subject to change. It is important to know of bitcoin mining, in case the dynamics and economics of the system change. If you are up to date on BTC news, and knowledgeable on the process, it can be a worthwhile endeavor to pursue bitcoin mining.

Selling Bitcoins

Bitcoins can be sold either online or in person. Each has its own distinct advantages and disadvantages. Selling online is the more common way of trading BTC, because the entire internet is your potential buying market. There are three main ways to go about selling BTC online:

  1. Through direct trade with another person, in which an arbitrating entity facilitates the transaction. Common options are Coinbase (USA), LocalBitcoins (USA), Bitbargain (UK), and Bittylicious (UK). These sites require seller registration through identity verification. Once registered, you can post selling offers to attract potential buyers. The website arbitrates the transaction for security purposes.
  2. Through an online exchange, in which you trade with the exchange itself, rather than another individual. Like direct trade, you will have to register by verifying your identity, but the sales are not as arduous because you are selling directly to the exchange. This method has faced various issues, and therefore you should thoroughly research any online exchange before trusting and using its services.
  3. Through a new peer-to-peer system which connects those who want to buy bitcoins with traditional currently, and those who want to sell bitcoins for traditional currency. Sites like Purse and Brawker help connect the independent buyer and seller to implement a complementary system of bitcoin exchange. These sites can be used to use bitcoins to buy goods from vendors that do not directly accept such currencies. It also attends to those looking to buy bitcoin with a debit or credit card

The most relevant method of the three will vary from person to person depending on the interests of the seller. The 3rd option, the peer-to-peer system, is likely the most useful and lucrative. The way it works is, someone puts up a wish to say, for example, buy a guitar with bitcoins on a website that does not accept bitcoins. They would want to do this because bitcoins can have more buying power, thus allowing the purchase to require less wealth. So, someone with cash offers to buy said guitar, and in return, when the guitar arrives at the requester’s house, the bitcoins will be transferred from the requester to the buyer’s wallet. This process is easier done than said, and is difficult to articulate to someone who has not done a transaction like this. The arbitrating website will take some portion of the transaction, but it is often till worth it to use these services.

Storing Bitcoins

Bitcoin wallets can store your bitcoins at a personal address which allows you to access your funds. No matter what you do, be sure this wallet is secured. Beyond the digital, you can also use paper storage to avoid a potential security breach on your computer. Your bitcoins are actually stored anywhere, but rather, the digital security keys are stored which allow you to access the addresses of your public bitcoins. It is these digital security keys that are maintained within these wallets.

  1. Desktop Wallets: Programs like Bitcoin Core and MultiBit are examples of Desktop Wallets. DarkWallet is a program that prevents people from tracking their various exchanges.
  2. Mobile Wallets: Desktop programs are useful, but mobile wallets allow you to purchase at a physical store. These often come as apps on your smartphone, often using the near-field communication (NFC) feature. This allows you to tap your phone on a vendor’s reader to make a payment. Examples include Bitcoin Wallet, Mycelium, and Xapo.
  3. Online Wallets: This allows your bitcoins to be stored online, allowing you to access them from anywhere. Online Wallet companies include Coinbase, Circle, and Blockchain. Although these companies have historically been reliable, be careful, because technically with online wallets they are in control of your bitcoins.
  4. Hardware Wallets: These are devices which are dedicated solely to holding bitcoin information. Trezor hardware wallet is one of the most commonly used hardware wallets.
  5. Ledger USB Wallet: USB wallets are similar to the software found in hardware wallets. They use smartcard security systems and look like your traditional USB device.
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The Value of Bitcoin

The value of bitcoin (BTC) has varied significantly since its advent back in 2008 by Satoshi Nakamoto. Without a centralized banking authority, or a market of usability to base it off, the BTC was originally worth less than a penny. The first transaction using bitcoins involved two Papa John’s pizzas which were bought for 10,000 bitcoins, which was negotiated in the bitcointalk forum. Assuming the two pizzas were worth around 25 USD, this would put the USD-BTC exchange rate at 400-1, making BTC worth one fourth of a penny. This is not that bad, considering these coins were mined for no cost except electricity. Despite its humble beginnings, the bitcoin would soon experience a prolific, unprecedented rise in value.

As shown above, the value of BTC almost reached $1000 USD before the dawn of 2014. This dramatic increase from $100 to almost $1000 USD per bitcoin occurred in less than two months. Since then, it has dropped, raised, and settled around $400 USD as of January 20th, 2016. The value, as with any free market item, is determined by what the people are willing to pay for it. With bitcoin, people have invested their faith in this curious cryptocurrency. Not just people, but bankers, vendors, and investors are all hopping on board the BTC train, aspiring to make money off of this lucrative currency.

The volatility of bitcoins, meaning the likelihood of a sporadic change in prince, has been historically worrisome for BTC users. Within about 5 months in late 2013 and early 2014, BTC jumped to around $1000 USD from $100 USD, and then back below $500 USD. During these volatile time periods, you could gain or lose large amounts of money investing in BTC. Recently, the volatility has decreased, and the price is relatively stable, albeit still being prone to significant daily alterations. For example, in 2015, its value in USD increased by 21%. As bitcoins become more and more acceptable as a currency, the price will likely increase because this implies that people are realizing it as a worthwhile method of transaction.

Let’s analyze year-by-year the historical values of BTC

2011:

In 2011 was one of the first price booms that occurred for the BTC. Within a couple months, the price spike from under $1, to around $30, followed by a relatively quick drop back to $1 within the ensuing months. We see these mini booms throughout the history of the value of bitcoins. These were somewhat prophetic of the eventual booms of increasing value exhibited by the BTC in the later years.

2012:

In 2012, there was a steady increase in BTC value from around $4 to $15 USD. There was not many drastic changes in price besides a significant 40% drop in late August. This was a momentous year for BTC because it demonstrated its ability to grow in a stable manner, and also new markets were now accepting BTC as an acceptable currency. It is also worth noting that Silk Road, an underground website that accepts BTC and sells illicit items, was up and running during this year. The following year in 2013 this would be shut down, but the value of BTC persevered and has its most exciting year in its history

2013:

If you were the man or woman who was paid 10,000 BTC for two papa johns pizzas back in 2008, you were in for a treat in 2013 if you were patient enough to hold on to your ever-increasing BTC. If he or she sold their 10,000 BTC in November of 2013, they would have essentially earned $10,000,000 USD from a 5 year investment. This makes those original two papa john’s pizzas the most expensive pizzas, in hindsight, ever to be bought. From its humble beginnings, this would have been hard to predict. Who in the original bitcointalk forum could have guessed that the price would jump from a fraction of a penny to a thousand dollars in 5 years? Many have speculated as to whether or not BTC will ever rebound back to its $1000 USD glory. It seems likely, especially since BTC is still in its infant phase, and still requires more efficient, and safe programs to help arbitrate its transactions. There is also the doubt in many people’s minds that the value of BTC may crash, but this seems very unlikely. If anything, BTC is in store for another prolific rise in value as exhibited in 2013, especially when considering the rising debt ceiling, and rising inflation rates, BTC seems like a safe investment during these times.

2014:

In 2014, the value of BTC suffered from the 2013 bubble. The dramatic ups and downs through 2014 made this an exciting, albeit downward, year for BTC. The end of 2014/the beginning of 2015, and even today at around $400 BTC/USD, seems like the time to buy. It seems likely that the BTC will bounce back to its 2013 glory, because the acceptability trend is going upwards; more and more vendors, banks and investors are accepting this as a valid currency. With more backers, another boom is likely, especially facing inflation.

2015:

2015 also saw its dramatic ups and down, but overall saw a 21% rise. This was powerful for the BTC value, because it encouraged people to believe that BTC will continue to be a valuable form of currency. If the crash would have continued, people may have begun to lose faith in BTC throughout 2015. With a timely rise in value, it seems as though BTC is here to stay; vendors and banks seem to agree.

Where is the value of BTC headed? It is hard to tell. From examining its history, growth seems inevitable, but the ever-present thought of a potential crash is always in the back of the minds of users and investors alike. Despite all this, it has made it this far, and the future of BTC appears to be bright. It will be interesting to keep an eye on the bitcoins in the years to come.

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Transaction Speed, Security, Fees, and Options

here are many ways to transfer bitcoins (BTC). The speed, security risk, and cost of these various options are worth looking into so you can use the transaction program that is tailored to your needs

Transaction Speed

&#8203;By design, bitcoin transactions take around 10 minutes for each transaction. This is because bitcoin transfer requires multiple confirmations through the mining process, which ranges from a few minutes to a half an hour. Despite this, a transaction is often irreversible once the initial transfer is digitized. Companies like CoinSafe, a free bitcoin ATM service, are pioneering ways to reduce the required transaction time to make the payment process less arduous. By monitoring mining machine nodes, they believe they can reduce the average wait time from 10 minutes to 10 seconds; this would surely be a great advantage to this bitcoin ATM (BTM) company. The tricky part is, that this would be exclusive to CoinSafe, so it could either make them the exclusive heir to the most efficient BTM processing, or alienate them due to lack of compatibility. It is likely that the former would occur, especially if it means 1/10th of the wait time. Be sure to keep up to date on transaction speed technology, because it will allow you to enlighten your investments and see where the future of BTC transactions is heading.

Security

Since BTC is not regulated by any centralized authority, there have been questions regarding the security of this cryptocurrency. Historically, there have been very few security breaches that have allowed fraudulent transactions. The ingenuity of bitcoins has made it a safe option in terms of avoiding cyber theft.

Although, back in August of 2010 a loophole was found in the system which allowed some greedy users to bypass the inherent BTC transaction restrictions which allowed them to create an indefinite number of bitcoins. With a ravenous act of greed, Over 184 billion bitcoins were created in such a manner. Within that same day the blatant fraudulent transaction was detected and the fraudulent bitcoins were destroyed. The bug was fixed and an updated version of bitcoin protocol was implemented. This was the only major known glitch to hit the BTC market, and it was swept clean by the internet militia rather hastily.

&#8203;The infrastructure of bitcoin protocol is very secure, but the problem resides in the various wallets and services used for bitcoin transactions. This means it is imperative that you find the most secure programs and hardware to handle your precious BTC currency. If any security breach occurs, you can assume that it was some sort of deficiency in the program or your computer’s security. Examples of program breaches are rather numerous.

Inputs.io was hacked twice for a total of 4,100 bitcoins worth around 1.2$ million USD at the time. The hackers infiltrated the system cloud-hosting provider and gained access to various funds. The hacker gained access to the site’s accounts on Linode through a series of old email accounts and reset the site’s account password. Mt. Gox also suffered immensely from internet hackers. They recently filed for bankruptcy protection after losing 468$ million USD worth of bitcoins to fraudulent transactions. Investigators believe the thieves took advantage of transaction malleability, which allowed them to modify the transaction to trick the system into thinking the transaction had not occurred, when in actuality, the BTC infrastructure had executed the transfer. After this breach, transactions were temporarily frozen, but efficient bitcoin exchanges such as Bitstamp and BTC-E resolved these issues shortly after the breach, and resumed operation with a few days.

It was not just the BTC transfer and storage programs which suffered, Silk Road 2.0 suffered a loss of 2.7$ million USD worth of bitcoins from its escrow account. Because Silk Road is not necessarily accustomed to BTC security, they had no fail safe to prevent such a large theft from occurring.

Transaction Fees

Although most bitcoin transactions are free of charge, one of the downsides to BTC transactions is that they sometimes do require a transaction fee. Fees often incur when transactions draw coins from many bitcoin addresses, which requires a large amount of data. For transactions like these, a small fee is usually expected. The transaction fee is received and process by the initial bitcoin miner who mined the given block. If you wish to avoid unwanted transaction fees, you should be fully knowledgeable of any potential fees that may incur on a transfer. Transaction cancellation is also a possibility if you are presented with an unexpected fee.

Here is a list from blockchain.info regarding the total monthly transaction fees of the recent transfer period:Transaction Fees

Considering that there are over 100’s of thousands of transactions occurring daily, these total transaction fees are nearly negligible. These fees are most common when accruing numerous amounts of small payouts such as when you are collecting BTC donations, affiliate revenue, or receiving small quantities of free bitcoins from various sources.

Transaction Options

There are many transaction options when it comes to transferring BTC. As the days go by, bitcoins are becoming more common and acceptable. This is ensuring their value as a currency.

  1. Bank Wire: Viable option for trading bitcoins. Be sure to personally talk with the banks involved before committing to any sort of large bank wire transaction. (allows various currencies)
  2. BitcoinPay: Payment gateway involved in BTC transfer; initiates instant confirmation from thethe bitcoin network. They offer a special guarantee which promises no chargeback and no fraudulence. (allows USD, EUR, PLN, CZK)
  3. OKPay: A simple non-reversible BTC processing service that supports 19 world currencies (allows USD, EUR, GBP, RUB, CHF, etc)
  4. WARNING – PayPal: Easy for charge-backs, and the terms of service do not allow bitcoins. This makes fraudulent transactions very easy. Try to avoid PayPal for bitcoin transactions.
  5. Euro SEPA Transfer: Often free wire transferring between European banks, and is cleared in approximately one working day after the transaction. Fraudsters avoid this transfer service, which means it is a wise choice for the noble BTC users. (Allows EUR)
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Ethereum Online Casinos

If you have any familiarity with Bitcoin, understanding the concept of Ethereum will be infinitely more feasible. If not, let us give you a little bit of insight. Both Bitcoin and Ethereum are what have become known as cryptocurrencies and operate on what is known as a blockchain. Through their own unique networks, transactions occur and are fundamentally based around currencies specifically designed to be used within the blockchain. The blockchain is nothing more than a ledger by which anyone, anywhere can see each and every transaction that has occurred from the beginning of time up until the present. This is something people love because it breeds transparency in that no shady dealings or secret transactions can ever take place because they are all public, recorded, and published.

Though these fundamental aspects of Ethereum and Bitcoin are similar, the similarities really stop beyond that.

Difference Between Bitcoin and Ethereum

From that first section, it sounds a lot like Ethereum and Bitcoin are two garments cut from the same cloth; and in many ways they are. But while Bitcoin exists as a means of strictly transferring value over the web, Ethereum exists as a platform for people to transfer/exchange literally anything over the web. Though there is a monetary aspect of Ethereum, it differs from Bitcoin in that it is not solely intended as a monetary exchange and trading platform. Put simply, Bitcoin is a monetary-based blockchain while Ethereum can be described as a general purpose blockchain.

Utilizing Ethereum, users and developers can create decentralized applications that are governed by smart contracts. Smart contracts are exactly like written contracts in that two or more parties enter into the agreement, which is plainly spelled out. If, for example, you wanted to create an application for the creation of legal documents, you, the writer, might spell out a contract with a developer that lays out the type of application being built and who is responsible for specific tasks. In order for anyone to create a contract and use the Ethereum network to host it, they must pay. The price paid for a contract depends upon many factors, including the number of members, the complexity, and so on. For extremely complex contracts, the fee is higher than it would be for one that was simple. On Ethereum, those wanting to enter into a contract pay a fee to the host of people who will host the smart contract, keep it alive, and ultimately enforce it. The currency paid out to these people is referred to as ether. What’s more, the contracts are governed Ethereum and not by any singular government or government organization.

In the end, the hope is that entering into agreements via Ethereum and the currency that governs it will become a viable alternative to seeking a lawyer and paying exorbitant costs in order to create an enforceable contractual agreement. In addition, Ethereum provides people who may reside in a part of the world where the legal system can best be described as unreliable a way to enter into agreements without fear of being taken advantage of.

Ethereum History

Ethereum was first derived in a publication headed by a man named Vitalik Buterin, who himself was a developer who dealt with Bitcoin. Buterin first crafted Ethereum with the goal of creating a network of decentralized applications that worked in much the same way as the popular cryptocurrency Bitcoin.

Ethereum was first conceived in early 2014, and by the summer months a crowd-funding campaign had already gotten off its feet. In that same year, Buterin was presented with a World Technology Award for his new creation. Ethereum was launched and became live in July of 2015 and its ether currency quickly rose in value as people saw Ethereum as a way to do everything that bitcoin does and more. As opposed to solely transferring money from person to person, people were able to transfer all sorts of services and items.

Ethereum’s short history is not absent any controversy as a major hacking event which saw The DAO as its victim not only shattered the seemingly unflappable confidence people had in Ethereum, it also devalued ether considerably. The DAO is a platform of sorts where thousands of Ethereum’s smart contracts were being stored. When all was said and done, about $50 million worth of ether was stolen from The DAO and some serious security concerns were raised. Ethereum has since worked its way through many of these concerns and continues to grow, but just as it was in the early days of Bitcoin, there have been some turbulent times.

Online Casinos and Ethereum

At this point, you will find almost no online casinos utilizing Ethereum or, more specifically, ether. The reason for this is due to the simple fact that ether cannot operate outside of the Ethereum platform. This means that in order for a real money Ethereum online casino to exist, it must be created within Ethereum. Unlike existing websites who have simply tailored their banking methods to accept bitcoins, ether does not present them with such an option.

As Ethereum becomes more widely known and, more importantly, more widely used, the widespread belief is that the existence of online casino applications is more of an inevitability than anything else. For now, however, cryptocurrency enthusiasts will find that it is incredibly simple and straightforward to convert ether into BTC. Many exchanges exist such that you can quickly exchange ether for BTC and vice versa. Many of these same exchanges also offer you the ability to change ether into any traditional currency such as USD or Euros as well.

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Using a Trezor for Bitcoin Casino Deposits

If you are in any way familiar with the use and function of Bitcoin on the web, you are more than well-aware of the fact that most users opt for storing their bitcoins in some sort of web-based wallet or safe. This has been one of the only methods of safe-harboring bitcoins since the currency’s inception, but with recent changes to the way hackers and fraudsters work, it is becoming clear that web-based bitcoin wallets are not as safe and secure as once believed.

For those out there who would like to utilize bitcoin, and even those who utilize it already and are looking for a safe place for storage, Trezor may be the answer to all of your security concerns. In essence, Trezor is nothing more than an added layer of protection sheltering you from any and all unscrupulous characters who might be attempting to access your bitcoin stash. Protected by a security key only known to you and existing as a separate piece of hardware from your computer, Trezor provides more protection than you will probably ever need. By protecting any and all outbound bitcoin transactions, Trezor actively thwarts keyloggers and other hackers from being able to access your wallet and stealing or otherwise making use of your money without authorization.

How Trezor Works

Trezor is not a computer program or any type of software that is downloaded to your computer, but rather, it exists as a separate device quite similar to a small external hard drive. Most Trezor devices come packaged in a small box and are accompanied by a short micro-USB cable used to connect the device to whatever computer you choose. The actual Trezor device is quite small, made of plastic, and unassuming in nature. What’s more, it is small enough that it can be safely stored in anything from pants pockets, to a suitcase, and even in a bookbag or work bag.

The installation process for a Trezor is by no means difficult, but there are certain steps you must take in order to install the device successfully. Being that we are dealing with a device intended to provide security, a few red flags would be raised if the installation process were quick, simple, and straightforward.

After you have connected the Trezor device to your computer, your next step is to download a browser plugin known as myTREZOR. Once myTREZOR has been successfully installed, it will prompt you to enter a PIN. Instead of physically typing in numbers, however, the myTREZOR webpage will simply ask you to click numbers on a keypad that has been scrambled. The PIN you utilize will then be used on your Trezor device, but each and every time you enter the PIN on the device the number layout changes, meaning that keyloggers and other hackers would be physically unable to steal your PIN because it changes each and every time you log in.

Once your PIN has been set, you will then need to take note of a 24-word seed that can be utilized in the event of you losing or misplacing your Trezor. It is particularly important that you take note of the 24-word seed as it is the only method by which you can recover your bitcoin wallet should the Trezor become compromised. As far as what wallets can be of use when attempting to utilize the 24-word recovery seed, Satoshi Labs, which created Trezor, confirmed that the accepted wallets are as follows: Mycelium 2.0, Multibit HD, and Wallet32.

Price of Trezor

The price you will pay for a Trezor device ranges from seller to seller, but the baseline cost is typically in the $100 range. This is an extremely affordable option for safeguarding your bitcoins, as there are horror stories of people losing thousands and thousands of dollars because the security of their trusted bitcoin wallet was compromised.

Trezor and Online Casinos

For the online casino enthusiast, Trezor presents you with perhaps the safest and most secure way by which you can transfer funds to an online player account. The initial setup of a Trezor device will take you in the realm of 15-20 minutes, but every subsequent use of the device will be as simple and painless as it can possibly be.

Depositing via Trezor is different from web-based bitcoin wallets in that you need to provide a bit more authentication. In order to verify outgoing transactions (deposits at online casinos), you will be prompted to enter your PIN on your device and subsequently verify that the amount you are sending as well as the address you are sending it to are both correct. In most cases, online casino users utilizing Trezor do so in order to avoid having all of their bitcoins located in one, vulnerable spot. If you have 50 BTC but are only seeking to deposit 5 BTC, you are able to use Trezor to transfer the 5BTC to your bitcoin wallet so that you can then deposit it into your player account. In this hypothetical example, even if your bitcoin wallet was compromised after you executed your deposit, the hackers would be left with nothing to take as the 5 BTC is already in your online player account, and your other 45 BTC is sitting safely on your Trezor device, protected from anyone and everyone.

You can never underestimate the prowess and ability of unscrupulous internet hackers. Utilizing Trezor is just one way to stay ahead of the game and protect your money. Bitcoin is still very much the Wild West as far as currencies are concerned, and that leaves you with all the more reason to stop at nothing to make sure that every bitcoin you own is safe and secure at all times.

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