Online Gambling and Bitcoin

Bitcoins are a digital currency, and a number of online casinos have adopted them in order to save money on fees that they had to pay to financial institutions for transactions. For the player, this also means faster transactions, so in the paper and out of the paper, up to this point, it’s all good news.

To better understand some of the changes that may occur, we have to go back to April 2016, when the value of bitcoin was a little over $400USD. This currency has never been known for being stable, and just a few months later, in June, was already above $750. The rise continued steadily, to peak in January 2017 above $1250, crashing back to $750 just a couple of weeks later.

From January until now, the price has oscillated in a steady recovery, to a maximum of close to $1300 in March. These extreme fluctuations on the market price have called the attention regarding the potential upgrade software update of the Bitcoin.

The Fork

A fork is a necessity in order to improve digital currencies in what concerns their function and efficacy. They work pretty much as a software upgrade: if we don’t upgrade, the program stops working. These are called the hard-forks, but we also have those upgrades that are not compulsory, but that is very much recommended the so-called soft forks. So basically an update is necessary for Bitcoin, a software improvement is needed in what concerns the transaction of the currency.

Privacy has been determining the value of Bitcoin, and this privacy depends a lot on decentralization. This means that bitcoin transactions are not controlled by companies or governments, it’s a decentralized currency that quite a few casinos and online gamblers already use.

It’s a whole new currency world where the transactions are private, but at the same time bookkeeping does exist in a digital ledger called blockchain. These chains of blocks are transparent, but private at the same time, and the whole goal of the fork is precisely to increase the number and speed of transactions.

Unpredictable results

If the hard-fork advances, the blockchain split might culminate in two separate and independent Bitcoin, in the form of a Bitcoin Core (BTC), and Bitcoin Unlimited (BTU). If independent blockchains do emerge from a possible Hard Fork, we enter in the reign of speculation where we can have all bitcoins as BTC, BTU or double and existing in those both independent blockchains.

Those holding bitcoins on exchange sites should consider the risks involved in that, as overnight the currency might crash, and we might lose a significant amount of money. So nothing like holding our bitcoins privately in our wallet in these uncertain days, in order to make sure we are the ones controlling our assets.

Meanwhile, relatively indifferent to this scenario, Bitcoins continues close to its highest levels, having a market price of $1258, and telling both online casinos and players that it’s a currency to count on to maximize their profits and payment times.