Although Bitcoin is not as widely used as credit cards or cash, its adoption is growing. According to Binance’s Crypto User Index for 2021, 97% of crypto users are confident in cryptocurrencies. The statistics come as no surprise, global trust in digital currencies is growing.
It’s hard to find anyone who hasn’t heard of Bitcoin: it’s the very first and most publicised cryptocurrency among 7,800 digital comrades or altcoins. Watching Bitcoin’s volatility with bated breath, the world tries to predict its next hike and multiply their investments. Let’s dive into the world of virtual currencies and take a closer look at how to use bitcoin.
Bitcoin’s history started with the registration of the domain name bitcoin.org in 2008. Satoshi Nakamoto, the developer of the first cryptocurrency, believed his goal was to create “a system for electronic transactions without the need for trust”, and he succeeded in this.
What is the main difference between decentralised and fiat currencies? The fiat system is governed by the state and the banks responsible for regulating all financial activity within their jurisdiction. While no one is immune from inflation or denomination, having clear financial legislation helps regulate fiat.
Bitcoin lacks a clear and well-defined legal framework, which can be both a plus and a minus. The lack of control over digital currency makes it appealing to those who value anonymity and fast transaction speed.
Top-3 Cryptos In 2021
The number of known cryptocurrencies, at the time of writing, stands at approximately 7,800, with new ones appearing every day. The world is going down the new rabbit hole of the 21st century – crypto. And sometimes it can be challenging to make sense of the sheer diversity of altcoins out there.
Despite this, iGaming players have their sights set on their go-to gaming cryptos. Here are the top 3 player preferred cryptos across SOFTSWISS client brands.
- Bitcoin (BTC)
Fun fact: the smallest part of the coin is called a Satoshi with the value of 0.00000001 of BTC.
Much has already been said about the king (or queen, if you will) of all cryptos. Let’s just mention that bitcoin’s starting price in February 2011 was 1 USD. Today, the most popular and unpredictable cryptocurrency has increased by 5 892 600%.
BTC gambling motivation: the first and most widely trusted cryptocurrency.
- Ethereum (ETH)
Fun fact: Ethereum is not a currency but an open-source blockchain platform. The platform’s currency is called ‘Ether’.
The platform’s story begins in 2013 when programmer Vitalik Buterin decides to create the world’s programmable blockchain. It is more than a cryptocurrency: Ethereum is an entirely secure online marketplace with a more private virtual environment. This ‘bazaar’ currency, ETH, has grown from 0.31 USD to some 4,300 USD since 2015 and is continuing to do so.
ETH gambling motivation: compared to bitcoin, input fees are lower and transactions are usually faster
- Litecoin (LTC)
Fun fact: Charles Lee, an ex-engineer at Google and an LTC creator said: “Litecoin is a lite version of bitcoin.”
It is true that LTC is one of the first altcoins, evolved from bitcoin’s open-source code. According to our Q3 crypto report, Litecoin is experiencing phenomenal growth: half of all bets made in crypto on the SOFTSWISS Sportsbook were in LTC.
LTC gambling motivation: ‘lighter’ transaction fees for deposits and short transaction times
How Can I Use My Earned Bitcoins?
There are two main methods to use bitcoin: exchange coins for real money, goods, or services or invest in something, which might bring profit in the future.
A few years ago, the option of paying with crypto for goods and services seemed dubious as very few businesses accepted bitcoin. Today, the situation is fundamentally different, and more and more big brands are turning to bitcoin payments.
KFC, Twitch, Norwegian Air, Amazon, and other global giants from various fields already accept bitcoins. Bitcoin now comes in gift cards among particular retailers such as Walmart and Nike.
Moreover, the sweets of life like travel tickets, hotel stays, restaurant dinners, and bar shots can now be paid for with cryptocurrencies at some venues.
It’s not just individual brands that are getting ahead, but entire governments: El Salvador recently bought 400 BTC and approved bitcoin as legal tender (on par with the US dollar). El Salvador is the first so far to bring bitcoin to the official government level as a currency; however, the trend shows that it won’t be the last. Several world’s central banks, including the Bank of England, are contemplating creating their digital currency.
Though the bitcoin blockchain is a decentralised system in which anyone can partake, how do businesses integrate crypto into their operations? Payment service providers, the likes of PayPal and CoinsPaid, are keeping a close eye on crypto payment processing. PayPal launched a partnership with three major crypto payment service providers – BitPay, Coinbase, and GoCoin, while CoinsPaid supports over 30+ cryptos and more pairings for exchange and provides a full-blown payment gateway for business.
Spending can be accomplished in a number of ways:
- QR code that needs to be scanned by a smartphone with the system installed in the required cryptocurrency
- Transfer to a certain wallet
- Third-party payment systems that accept crypto
Coinspaid is precisely that kind of third-party solution for both business and personal use. The wallet offers services for secure and fast cryptocurrency transactions, supporting Bitcoin, Ethereum, USDT and other digital currencies with a leading crypto payment gateway.
While bitcoin was envisioned as a payment method, its holders primarily use it for speculation more often than not. This particular form of investment relies heavily on chance. Online bitcoin trading platforms, auctions, and online-gambling sites supporting crypto are just the places for this.
Most bitcoin investors, however, prefer to hold bitcoins to manage their assets. This tactic is called HODL and refers to a model where an investor buys a cryptocurrency in order to profit from price movements by selling it at the right time.
Spending Bitcoins: iGaming
According to the predictions, online gambling will not escape the crypto craze: cryptocurrency will replace fiat by 2030, displacing about 25% of national currencies. In terms of reinvestment, bitcoins suit online gambling perfectly such as anonymous, fast and secure payments.
However, the legality of crypto gambling is a disputed subject. The lack of elaborate laws gives bitcoin-oriented casinos a certain amount of flexibility in operation. Despite this, operators wishing to offer crypto need to keep a close eye on the laws in the country where they are working. The key to success is to choose a crypto solution with a solid team that professionally adapts to ever-changing market conditions.
Those wishing to use bitcoin to bet should read up on the laws of the country they are in and its stance on the legality of crypto gambling. Crypto gambling, apart from its legal risks, has its upsides and downsides. However, betting on sports or choosing crypto casinos is another way to use bitcoins and even multiply the capital in case of success.
In Crypto We Trust
Cryptocurrencies, in general, and bitcoin in particular, are hot topics today – that is a fact. Despite polarised opinions in society, it would be shortsighted to deny that these virtual digital currencies have real and tangible impacts on our lives.
The world is moving by leaps and bounds towards making bitcoin payments as popular and convenient as Apple Pay, debit cards, or any other payment system. Gambling follows the same trend and is now the best time to take advantage of the still relatively vacant niche of reputable crypto gaming operators. Choose a crypto casino solution with reliable support and join the bitcoin gambling wave that is eating the world.