How Bitcoin Works
Simply put, Bitcoin is a decentralized currency that is held on something called the blockchain, which is a record of transactions that are processed and recorded by all members of the network on which the blockchain operates.
In addition to the usual transactions, members of the Bitcoin network can “mine” for Bitcoins. When a “block” is uploaded to the blockchain after it has been confirmed, it is referred to as a “cryptocurrency block.” A successful miner is rewarded with 12.5 Bitcoins for producing a new block, which increases the supply of the cryptocurrency.
It takes a lot of time and effort to mine Bitcoins since the encryption key on transactions is so complicated. If a miner does not have a specialized processor, they may wind up spending more money on electricity than they are generating in Bitcoins.
Legality of Bitcoin in New Zealand
Bitcoin deposits and withdrawals are now available at a few online casinos that cater to NZ players. In spite of the Gambling Commission’s reluctance to outright ban digital and virtual money, they express extreme caution.
Even if a site accepts cryptocurrency as a means of payment, you should always ensure that the site’s operator is legally licensed. This means that in order to legally provide such a payment option, operators must fulfil anti-money laundering standards and notify the commission when they change their payments processors.
If an online casino or iGaming site exclusively accepts Bitcoin or any other cryptocurrency, it must be properly regulated by New Zealand’s leading regulatory agency, even if it does not take any other currency. While virtual currencies like Bitcoin and others are gaining in popularity, players should still remain cautious.
Satoshi Nakamato, a mystery individual or organization, has been linked to Bitcoin from its beginnings in 2009. In the beginning, Satoshi Nakamoto wrote a white paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System” to describe the workings of the cryptocurrency. One year after the proposed approach was released as open-source software, a ‘miner’ purchased two pizzas for 10,000 Bitcoins.
The Great Recession of 2008
At the time of Bitcoin’s launch, the global financial crisis in 2008 was in full force. To some, the notion of decentralized money may have resonated because of this. Many alternative cryptocurrencies have popped up in the wake of the Bitcoin model’s success.
Bitcoin’s popularity skyrocketed as the notion of encrypted, ledger-based transactions took hold. Overall, things went well, despite a few hiccups in the path. A single Bitcoin’s value went below $1000 in 2013, immediately after it had achieved that level. Investors lost a lot of money. After a tremendous comeback in the following years, a single unit is worth less than $10,000 today.
In spite of its turbulent history, Bitcoin has contributed to the development of a virtual economy that coexists alongside our present financial institutions. Despite warnings from regulatory groups, there has been a boom in interest in using them in online casinos.
Advantages and Disadvantages of Bitcoin
Before you start looking for an online casino that accepts Bitcoin, consider the benefits and drawbacks of doing so. Consider the following before making a decision.
Big Promotions – Many casinos that take Bitcoin provide significant reward packages in an effort to encourage clients to make transactions with cryptocurrency, giving up to 5 BTC in some cases.
Privacy – Wallet address verification is part of a crypto-currency transaction, but your personal information is not disclosed. This implies that if you chose to gamble with Bitcoin, third parties will have no way of knowing anything about you.
Security – Because there are no rules governing Bitcoin at the moment, a government cannot gain possession of your digital currency.
Ownership – A government cannot seize control of your digital money because there are no laws regulating Bitcoin at this time.
Lower Fees – Transaction fees are lower since there are no middlemen. However, a little price must be paid in order for your block to be mined. Alternatively, a Bitcoin-enabled online casino may charge its own fees. Prices tend to be competitive since operators do not want to turn away customers, no matter how they pay.
Fast Transactions – Traditional payment methods can take up to three days to execute, however Bitcoin transactions only take minutes no matter where you are in the globe. You’ll have access to your funds as soon as an online casino has approved your transaction. It’s critical to remember that transactions may only be performed once the current block has been completed. This might happen in a matter of minutes to a few hours. Blockchain deposits can take up to a day to process, but that’s an enormous improvement over the old ways.
Limited Acceptance – Some of the biggest online casinos do not accept Bitcoin as a mode of payment at this time. However, this may alter in the future; at this time, the options are limited.
Competing Cryptocurrencies – Casino players in New Zealand may be less likely to use Bitcoin because of the growth of competing cryptocurrencies with superior blockchains.
Uncertain Legality – The adoption of Bitcoin as a payment mechanism at online casinos in several countries is still shrouded in legal doubt.
No Refunds – There is currently no known method to seek a refund or chargeback if you utilize cryptocurrencies.
Volatility – Because it is a speculative asset, the value of Bitcoin fluctuates greatly. There may be days when a BTC is worth $5,000 and others when it is worth $10,000 for a single Bitcoin. It’s critical to remember this if you want to make any kind of payment using bitcoin.
Technical complexity – Converting cryptocurrencies to fiat money requires a high level of technical knowledge. You’ll still need some expertise with crypto in order to transfer money correctly because their interfaces aren’t simple. Afterwards, you must find out how to transfer your Bitcoins from your wallet to a gambling establishment.