Can you play Bitcoin Casinos in the UK?
At this stage, it does not look like players can deposit and withdraw bitcoins on many UK online casinos. The Gambling Commission, although they do not outlaw it entirely, offer some cautious words on digital and virtual currencies in general.
We would advise consumers to be cautious when using digital currencies to gamble due to the associated risks.
UK casinos that do accept virtual currencies must also be in possession of a licence from the UKGC.
Is Bitcoin Legal?
Though in some countries, the legality of bitcoin is less certain due to government legislation, it is a valid currency in many others. Countries such as Russia and Argentina strongly regulate and in some cases ban the use of foreign currencies in general. Therefore, bitcoin very much falls under that remit.
Bitcoin is not controlled or regulated a government, a bank, or any such centralised financial institution. It is based around code, cryptographic hashes, and exists on a P2P (peer-to-peer) network. How do you earn and/or make bitcoins then if there is no overseeing power?
How does Bitcoin Work?
Apart from the usual buying and selling of goods as a way to accrue bitcoins, you can also “mine” for bitcoins. This process involves using computer processing power or force in order to un-encrypt parts of the bitcoinnetwork. Once this is verified, it creates a block. This block is then grouped into a block chain, and finally added to the bitcoin P2P database. Thus, new coins are added into circulation, and the successful miner receives 12.5 bitcoins as a reward for their hard work. Or we should say the computer processor’s hard work.
It is a time and power consuming process to mine for bitcoins, as the encryption key on bitcoin transactions is highly advanced. In fact, if you do not have a specialist bitcoin processor, then miners may find that they are spending more in electricity costs than actually accruing bitcoin wealth.
Fun Facts about Bitcoin
The Bitcoin currency symbol looks like this: ฿.
Bitcoins are highly volatile and should not be considered a stable investment. Sometimes a unit of bitcoin can be worth $1, the next is could be $0.01.
Bitcoins are not considered legal tender, and therefore you cannot pay your taxes with them.
If you can prove you own your bitcoins, then some governments will consider them to have legitimate value. They can be exchanged for goods and services just like other forms of currency. Some governments will be more inclined to think of bitcoins as property, and the rights that that affords you. However, as mentioned, you have to be able to prove that you own them.
It can be very difficult to do that, as there is no steadfast proof of ownership. Sometimes a collection of bitcoins that you have accrued can be wiped out in one fell swoop. This could be due to criminal activity, or hackers commandeering your booty. Or, it could even just be a glitch in the bitcoin network. These are just some of the many problems that bitcoin owners have to consider when accruing and investing in bitcoins.
Only 21 million bitcoins can ever exist. That is the absolute maximum. These days around 80% of that total supply has been mined. The rate of creation is halved every four years. The value of bitcoins will no doubt also shift in the future, as 1 unit becomes more valuable. Bitcoins can be divided up to 8 decimal places. If it becomes necessary, they could even be divided further to respond to demand.