Understanding the benefits and risks of using the bitcoin currency

Introduction

Bitcoin is a kind of currency that is made and used electronically. Its use is made possible via a peer to peer network without any authorizations or regulations. The currency is stored in a virtual wallet owned by a given user. Every single bitcoin is represented by a unique code with designated transaction logs and timestamps.

The digital wallets into which bitcoins are stored are considered an individual’s virtual bank account. These accounts are either created in a user’s computer or in the cloud. They function like normal bank accounts and can be used to exchange the bitcoins, pay for products and even save money.

Benefits of the bitcoin currency

Easy to use

There are no restrictions when it comes to exchanging or trading with bitcoins. You can conveniently send or receive money to any destination in the world. The transactions are also done easily from your smartphone, tablet, or computer. The fact that it is stored digitally makes it very easy to carry. For example you can carry millions of dollars in a memory stick that you use on your computer.

Secure

Since users are in control of all the transactions, it is very secure. Besides, even if you are paying for goods, sellers cannot increase the cost without you being notified. Users are protected against identity theft as no personal information is made public. What makes bitcoins safer is the kind of back up and encryption used. Transactions are verified using high level encryptions used by financial institutions, governments and military.

Stealing them is also difficult unless the thief gets access to the user’s personal computer. Besides, transactions cannot be traced since information of a wallet address is only available to the user. No one will therefore be able to tell how much you have in your virtual account.

Cheap

Use of bitcoins usually attract minimal or no fees at all. The transaction fees you pay when you use credit cards or PayPal cost you more than those done with bitcoins. Also there are no institutions or authorities that control the use of bitcoins. Whenever intermediary institutions are involved they will charge you extra for using their services.

Fast

There are no waiting periods associated with authorization needs, and hence transactions are done faster. Take for instance when you use a cheque from another bank to deposit money into your bank account, you do not receive the money immediately. This is because the bank still needs to verify the authenticity of that cheque and take more time to process and finally deposit the money into your account.

There are no chargebacks involved

Once bitcoins have been used to undertake a transaction, they cannot be taken back. This makes trading with bitcoins less risky. Unscrupulous buyers can therefore not use it to commit the kind of fraud seen with the use of credit cards. With a credit card it’s possible to make a payment then later ask the company issuing the card to make a charge back.

Risks associated with the use of bitcoins

The currency is highly volatile

Since it is still developing, the value of bitcoins keeps on changing. Its volatility is also due to the fact that the demand is higher than the supply. The demand for bitcoins keeps on increasing contrary to the limited amount of coins that are available.

It is hard to track the funds

The fact that bitcoins are untraceable is an advantage to people who mind about their privacy. However, it is a problem to governments and institutions trying to track down criminals. This makes it the best choice for criminals who want to trade in drugs or send and receive money for illegal activities.

Once stolen bitcoins cannot be recovered

However much losing bitcoins is difficult, they can still be lost. The most unfortunate part is that no mechanism can be used to get back your money. If someone gains access into your wallet and sends the bitcoins to their own account, you lose them for good. In addition to that, a hard drive can crash or a virus can corrupt the file onto which your wallet is stored. If this happens, then the bitcoins are forever lost.

Bitcoins are not widely accepted

Bitcoins have been adopted by only a small section of online merchants. Because of this, it is not possible to completely depend on bitcoins as a currency of trade. Due to the increased anonymity characterizing its use, governments may in future prohibit online merchants from trading with it. This can be done to ensure that people make transactions that can be tracked and the identity of persons making such transactions known.

Bitcoin games and all you need to know about them

Online gambling has become very popular and doing so in a bitcoin casino has also taken its share in this profitable business. If you own a digital wallet, then you might be interested in joining an online bitcoin casino. As such it is important that you get all the details you need to know about bitcoin casino games.

Tips on selecting the best bitcoin casino

Ensure they have a reliable payment system

The payment system should be trustworthy and hassle free. Check to confirm that the mode of payment is efficient such that you can easily deposit and cash out bitcoins with no problems.

Availability of a gaming license

Most bitcoin casinos operate with no license due to the lack of regulation characterizing the sector. However websites that are concerned about their legitimacy, safety, security and reputation have gone an extra step to acquire a license. If you get one with a license the better.

The kind of software used

A bitcoin casino is just as good and reliable as the software used. Before you get into bitcoin gambling, learn about the latest software used in online gambling. This is because some casinos use outdated software.

The level of player anonymity

Anonymity is very crucial when gambling with bitcoins. Ensure that their system is designed in such a way that no one can get access to your personal identity. Anonymity should be guaranteed when you deposit, withdraw or even choose to become an affiliate.

Acceptance of players from all over the world

Since some governments have prohibited online gambling, there are bitcoin casinos that do not accept players from such countries. Check to confirm that the casino you choose accepts worldwide players or better still players from your country or region.

Conclusion

Bitcoins have no doubt proved to be useful to many. However, if you choose to use this currency, be sure to have all the information you need. Understand the benefits and risks associated with the use of bitcoins. Also when you decide to play bitcoin games, try and get a good casino.