How Bitcoin will revolutionize gambling - infographic

How BITCOIN Will Revolutionise Gambling In November 2013, the value of bitcoins rose to an all-time high of $1,242 for a single coin -overtaking the price of gold at $1,240 per ounce. Bitcoin has caused waves in the financial world after quickly establishing itself as a rival to traditional currencies. And now it's set to revolutionise gambling. How Bitcoin Works Peer to peer network Bitcoins (BTC) are mathematically generated - mining Designed to be progressively more difficult to mine over time No central currency repository or administrator million 21 Log maintained of transactions Maximum of 21 million BTC can be created Can be bought or sold on exchanges Bitcoin is an unregulated peer-to-peer digital currency, whereas state currencies are issued by a centralised national authority, such as the Bank of England, and regulated by them. Each bitcoin transaction is encrypted into a mathematical problem that a 'miner' needs to process. 'Mining' means finding the mathematical proof of a bitcoin transfer and bundling it up with other transactions into a block. The block reward is a fixed number of bitcoins created with every new block mined. Price is determined by supply and demand. When demand for bitcoins increases, the price increases and vice versa. A limited number of bitcoins are in circulation, with new bitcoins created at a predictable and decreasing rate. For each transaction a verification process makes sure you actually own the bitcoins you are trying to spend and they arrive safely to the wallet of the person you are paying. Each transaction is logged as a block in the block chain. How Does Bitcoin Gambling Work? Players place bets using bitcoins at designated websites and gambling operators. There are two primary models of Bitcoin gambling: Using Bitcoins as Transaction Currency Betting with Bitcoins Players place a bet by transferring bitcoins to a A player uses bitcoins to buy chips to enter a hand of poker. Bitcoin address. Players receive more or fewer bitcoins in return, depending on whether they win or lose, and how much they bet. The player cashes out winnings in bitcoins, which are credited to the player's Bitcoin wallet. And because it's decentralised, Bitcoin gambling can cater to a global audience by removing financial middlemen and allowing P2P gambling. Why Bitcoin Gambling Will Catch On With Affiliates With Gamers With Casinos 0% transaction fees It's transparent It's cost effective There are no transaction Because all transactions are It's cheap for operators to visible in the Blockchain fees or exchange rates with Bitcoin so revenue shares aren't diminished by run as costs are passed on to customers, and there are no withdrawal frees. 1 upon verification, Bitcoin offers greater financial transactions. transparency. It's decentralised It's profitable No exchange rates apply Because of the global nature of Bitcoin gambling and crypto-currencies, affiliate marketing can Bets can be placed from anywhere in the world, eliminating the need for exchange rates or conversion fees. BitCasino.io generated $1.3 million turnover in 3 months. potentially reach a worldwide audience. Generous profit shares It's 'provably fair It gives a business advantage Traditional casinos have a Payouts in crypto-currencies can be made instantly and securely on a regular basis. sour reputation for being rigged, while online Bitcoin casinos market themselves By offering Bitcoin gambling, casinos can expand their client base and stay ahead of the competition. 3 as 'provably fair'- cryptography ensures this. Not many people know much about it, but Bitcoin is growing and seems set to take over the world of online gambling. Sources Graham, Feinstein, Ayotte Request DOJ Support for Legislation to Restore Wire Act - ayotte.senate.gov ESPN and BitPay Enter 3-Year Deal to Produce NCAA Bowl Game - blog.bitpay.com Unlawful Internet Gambling Enforcement Act of 2006 Overview - fdic.gov Bitcoin: Making Online Gambling Legal in the US?- businessweek.com Bitzino and the Dawn of 'Provably Fair' Casino Gaming - forbes.com S.2159 - Restoration of America's Wire Act - congress.gov Why You Shouldn't Write Off Bitcoin Just Yet - wired.com Online Gambling Revenues Fall Short - usatoday.com The Interstate Wire Act of 1961 – law.cornell.edu How Does Bitcoin Work?- economist.com Bitcoin Online Gambling - bitcoingg.com 2013: Year of The Bitcoin - forbes.com How Does Bitcoin Work? - bitcoin.org Getting Started -weusecoins.org Nevada – online.gambling.org B BitcoinSportsbooks.com