Electronic currency may not be something new; in fact, paying through the wire goes back to 1871 when Western Union started utilizing the use of the telegraph. But the term cryptocurrency is new and has been around only for about 10-years.
Bitcoin is the more popular of these currencies and it was invented by a man named Satoshi Nakamoto. Now a bit of mystery comes with Bitcoin because nobody seems to know who Mr. Nakamoto is.
Nobody has ever seen him and there are speculations that he might be just a ghost. Just another character created in the realm of virtual reality.
But that’s also what cryptocurrency is. It’s not real money. It can certainly be used to trade but it’s like you have let’s say a sack of potatoes and you’ll trade it for a cow.
Trade when it first started out was simply that – trade something of value for another thing of value. You could trade your skills for food, shelter or clothing.
Trade has come a long way because we invented money. And that means that we are putting a monetary value on things, whether it’s your skills or a sack of potatoes.
And when you gamble using cryptocurrency on the internet, the chances of security breaches become even more problematic.
Security, Fraud & Laundering
Because cryptocurrency is near impossible to trace it has become a currency for those who want to skirt the laws governing money. Money laundering is one of the used cases for Bitcoin because of its anonymity.
The U.S. government has many such cases stacked already with more cases coming in and investigated daily.
Many groups especially financial groups are calling for global coordination to regulate and monitor the transactions of Bitcoin. There are many websites that offer its users the ability to gamble using cryptocurrency on the internet.
It would be in the best interest of the gamblers to really know these websites first before doing so.
Some of these websites belong to very sinister groups and they used these sites as mining sites for Bitcoin. They will then use the Bitcoins to purchase illegal or contraband items in the black market.
Uncertain Future & Value
Bitcoins and the other currencies in the market are all relatively new. And the biggest risk in these currencies is there values. Today 1-Bitcoin is equal to around $5,000.
Tomorrow that number could exponentially increase however there’s an equal chance that it will drop so badly to the point of no value.
Unlike a sack of potatoes cryptocurrency and real money only have an attached value. Based on the demands of the market and what we will all agree as to its value.
When you bet online using cryptocurrency you actually need to trade your real money for one of these electronic coins.
It would be a good idea to actually keep a sack of potatoes around when you are busy gambling online. Because you never know when these things might decide to cave in.