What is Bitcoin?


To understand bitcoin gambling, then you need to understand bitcoin. So, what is bitcoin?

Bitcoin is an open sourced, peer to peer technology linked to currency. Bitcoin, as a product, represents transactions that are verified by the underlying network. The network incentivizes people (often called miners) to verify the transactions because miners receive bitcoin as a result of the confirmation process. The underlying network, which records all of the transactions, is called the blockchain (and is essentially a big public database).

The bitcoin system, which was created by Satoshi Nakamoto, was shared publically with the release of Bitcoin: A Peer-to-Peer Electronic Cash System. The paper details how the open sourced network replaces a centralized source of power that controls the flow of money. This is important because the system has its own supply and demand, which drives the value of a bitcoin. The value of a bitcoin is needed to incentivize miners to confirm the transactions on the blockchain.

Bitcoin is often referred to as a cryptocurrency because it is a technology that represents money. It is important to note the many governments classify bitcoin as a commodity (like gold) compared to a currency (like the U.S. Dollar or Euro).

Since bitcoin has monetary value and a system of trust, there is now an emerging number of online casinos that use bitcoins.