What is bitcoin?
What are bitcoins? Bitcoin is the most well-known digital currency. Bitcoins are not printed like dollars or coins; they are virtual. Bitcoin information is stored in the cloud and no government or bank controls it. Instead, computer networks using distributed ledger technology keep track of who owns what. Thanks to new software systems such as Bitcoin XT, users don’t even need a computer, but can keep and use bitcoins with smartphones.
The amount of bitcoins that can ever be produced has been set at 21 million. This limit was established to ensure the value of the currency. However, the value of Bitcoin is constantly fluctuating. It can be converted into fiat (like dollars or pesos). It can also be traded for other cryptocurrencies.
Bitcoins were first introduced in 2008, in a paper by someone going by the name of Satoshi Nakamoto. Nakamoto’s true identity remains unclear, and is one of the great mysteries behind Bitcoin.
How Bitcoins Work
Bitcoins work like any other currency. Bitcoins can also be accepted by individuals or businesses as payment. By doing this the fees for exchanging money internationally can be reduced since no banks or exchange rates are involved. However, not all businesses or individuals accept bitcoins.
The bitcoin system works because of something call blockchain technology, which is a form of distributed ledger technology. Distributed ledgers operate using a network of computers that hold identical copies of database information. In this case, bitcoin blockchain technology holds the value, ownership, and complete history of each bitcoin.
Blocks of information can never be erased from the ledger, and can only be updated with a consensus of blockchain participants. This system creates a level of transparency, security, and reliability that does not exist in traditional databases.
Using Bitcoin Exchanges
You can also buy bitcoins through exchanges using your bank account, credit card or debit card, depending on the exchange. For instance, in the U.S., you can buy bitcoins online through various exchanges, such as Coinbase or Kraken. The bitcoins are then sent to your bitcoin wallet, a place that stores the digital information you need to spend your bitcoins. See our how to use Bitcoin guide.
Other Types of Digital Currency
Although bitcoin is the first and the largest cryptocurrency, it is not the only one. Some others are: Ripple, Litecoin and, Ethereum.
Bitcoin Online Casino Bonus
Ready to bet online with your Bitcoin? See our Bitcoin casino bonuses. They cover slots, table games, video poker, poker and, anything you can gamble on. Bitcoin bonuses are often the best bonus outside of the welcome bonus. Online casinos love Bitcoin and it is fast replacing other forms of online casino deposit & withdrawals. Get out your Bitcoin & start playing with these