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Introduction to Bitcoin: Everything you need to know

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Introduction to Bitcoin: Everything you need to know

Introduction to Bitcoin: Everything you need to know

Fri Feb 11 2022 02:45:00 GMT+0000 (Coordinated Universal Time)

With the prices of goods rising and more tech innovations being unveiled by the day, mass attention is shifting to cryptocurrencies and, in particular, Bitcoin. Back in 2013, the world was taken by storm when Bitcoin soared from practically nothing to a whopping US$1,200, making millionaires out of its unsuspecting holders.

From then on, many have followed its story from uncovering the identity of its creator, the rise and fall of its value, to debates about its future. Find out everything there is to know about Bitcoin and dive into the revolutionary world of cryptocurrencies with Bitcasino’s introduction to Bitcoin.

Where it all began

Satoshi Nakamoto started a monetary revolution when the pseudonymous person published their whitepaper in October 2008. This gave birth to the first digital currency the world has seen, forever changing how people view money, currency, and the things that can be bought with it. 

Bitcoin is a decentralised digital currency that exists on a peer-to-peer network. Because it is decentralised, there is no need for intermediaries to process currency transfers like they would in a traditional banking system. This means that transactions made using the Bitcoin network can be processed in an instant, which is one of the main reasons why it has become so popular as a way to send and receive cash online.

It’s a modern alternative to the current monetary system where fiat money is used to buy services or goods. Unlike the monetary system that’s in place now, no government or central bank has control over the flow of distribution and the record of transactions of bitcoins. Instead, everyone who participates in the system gets to keep a copy of the ledger.

What is and how long will it take?

Bitcoins are not issued, distributed or made by any central bank. It doesn’t have a physical body. When you say that you own bitcoins, what you have is the right to access a specific bitcoin address record in the ledger called blockchain and send funds from one wallet to another. 

Currently, there are roughly 18,000,000 BTC tokens in existence. When the limit is reached, there will be no more tokens created. According to Decrypt.com, the last Bitcoin will be mined in 2140. 

Often referred to as the ‘digital gold’, Bitcoin is obtained through a process called ‘mining’ where ‘miners’ can produce Bitcoin tokens by solving a complex mathematical problem in the blockchain. Bitcoin has a hard cap of 21 million. Meaning, there is a finite number of Bitcoin tokens that can be mined.

What happens when the last Bitcoin is mined?

A Bitcoin token is produced every 10 minutes when a miner adds a new block to the chain. Each time a miner successfully processes a transaction, they are rewarded in BTC. 

Once the last Bitcoin transaction is made, all the miners in the chain will still be a part of the network, but they will no longer receive BTCs as incentives for maintaining the blockchain.

As the price of Bitcoin continues to rise, it encourages a lot of people to become miners. Through the use of high-end devices, miners can participate and add more blocks to the chain.

However, if this process goes unchecked, the supply can run out immediately.

18.5 million Bitcoin tokens have already been mined. With roughly 3 million tokens left, it’s easy to imagine that Bitcoin’s mining stage could be coming to an end soon. 

To slow down the production of tokens, Bitcoin halving happens when the 210,000 blocks are added to the blockchain. During this event, the miners’ rewards are halved to ensure that the value of Bitcoin becomes scarce, which in turn pushes up its price in the market.

When the first Bitcoin was mined, miners would receive a reward of 50 BTC. It was cut by 50% in 2012, which decreased their incentives by half. Then in 2016, miners received 12.5 BTC, and then it was again cut in half so it became 6.25 BTC in 2020. When the 740,001st block is added to the chain, the reward will be 3.125 BTC.

This halving process will continue every four years until all the tokens are mined. In the Bitcoin timeline, BTC tokens won’t run out for the next hundred years.


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The importance of Bitcoin’s finite supply and Bitcoin halving

The idea of an unceasing production of Bitcoin is enticing, but just like everything else in the economy, it must follow the law of supply and demand. If new Bitcoins are steadily added to the blockchain, it would result in overproduction. When this happens, the value of Bitcoin will decrease.

Contrary to the traditional banking system, minted Bitcoin tokens cannot be reprinted by the government. Because of its hard-capped supply, the 21 million will stay fixed and keep its circulation in the market in check. The movement of the crypto market highly depends on the volume of coins out there.

If a significant volume of Bitcoin is bought, the price appreciates. If a large volume of coins is sold, the price depreciates. So if there’s a consistent buying of huge volumes of Bitcoin happening in the market, it’s inevitable that the chart will climb higher every day.

The more mainstream Bitcoin becomes, the more people will buy and participate in the market. That is always considered a positive phenomenon for cryptocurrencies.

However, Bitcoin’s dependability on buyers also has a negative effect. This means that if more people are selling Bitcoin rather than buying them, then the price will drop as well. The crypto market’s volatility is often judged as the weakest point of the industry, which is why people are always on the lookout for other coins that are about to moon.

Why is the Bitcoin price going up?

What does the term ‘mooning’ mean?

As part of your introduction to Bitcoin, you should know the terms commonly used by seasoned users. One of these is mooning. It refers to the continuous growth in the price of cryptocurrencies. It derives from the phrase ‘going to the moon’ that occurs when a cryptocurrency’s price skyrockets so high, it goes off the charts. For mooning to happen, the price rise should be rapid and sharp over a period of time. Visually, the chart should show a steady upward trend.

Aside from using it to describe how the chart looks, ‘mooning’ is also used when predicting the movement of the market price. It’s an optimistic term that holds positive sentiment on how the chart will move in the coming days. When using the phrase ‘to the moon’, people refer to a strong belief that a certain coin’s price will significantly rise or continue to do so.

Uses of ‘mooning’

‘Mooning’ and ‘going to the moon’ are some of the most widely used terms in the crypto community alongside ‘Hold On To Dear Life’ (HODL). While people usually use it when predicting the price’s movement, some also use it to hype people up and convince others to buy a coin that’s about to ‘moon’.

Mooning first occurred to Bitcoin in 2017 when its price breached the US$20,000 mark. In the first quarter of 2019, Bitcoin’s price went to the moon again, and now in 2020, the chart is showing telltale signs of a bullish run.

When has Bitcoin ‘mooned’ before?

The first Bitcoin mooning in 2017

Bitcoin mooned for the first time in December 2017 when it climbed to nearly US$20,000 - the highest it has ever been. This was also the highest price a crypto coin has ever reached. In the following year, Bitcoin’s price slowly climbed down. By December, it dropped as low as US$4,000, which made 2018 known as the year of the cryptocurrency crash.

Following this crash, however, was Bitcoin’s second mooning in 2019. When the year started, Bitcoin wasn’t looking good as it dipped to its lowest US$3,000. But in just a few months, the community was abuzz with a bullish sentiment after the coin’s price continuously climbed. 

The second Bitcoin mooning in 2019

By the third quarter of 2019, Bitcoin’s price showed positive signs of a bullish run. From US$3,000 in February, it steadily rose to US$12,000 in July. The reason behind this upward trend proved to be institutional investors dipping their hands in the crypto market. 

Institutional investors consist of wealthy family offices that compose of high net worth individuals. Their sizable investments jumpstarted Bitcoin’s second mooning that prevented Bitcoin’s downward trend in the first months of the year to continue. 

In the third quarter of 2019, Bitcoin rose above the US$11,000 mark. Another factor that contributed to Bitcoin’s second mooning is Facebook’s announcement of their digital coin, Diem. This prompted mainstream interest in Bitcoin and other cryptocurrencies. With Facebook’s wide reach to billions of users, more people learned about the crypto market which led to more investors buying their first Bitcoin.

Positive investor sentiment also played an important part in influencing a lot of people into buying Bitcoin. It drives public interest and creates a strong momentum that contributes to the appreciation of Bitcoin’s price.

The third Bitcoin mooning in 2020

By the end of the year’s first quarter, Bitcoin dipped alongside traditional markets due to the coronavirus situation. In March 2020, it went as low as US$4,000, which was then dubbed as the ‘Black Thursday’ event.

After the Black Thursday event, Bitcoin’s price started rising again. This was largely attributed to the price appreciation that often happens before Bitcoin halving. Bitcoin’s block reward was scheduled to be halved in May 2020.

Bitcoin continued rising even after the halving happened in May. By the third quarter, its price breached the US$10,000 mark and even went as high as US$12,000 in August 2020. For the entire month, it remained in the US$11,000 territory and at times, went past US$12,000.

In the first week of September, Bitcoin’s price dipped back to US$10,000, but US-based cryptocurrency exchange Kraken reports that September has historically been a bad month for Bitcoin. During this month, the average return dips to the negative side.

Fortunately, Kraken says this isn’t the end of Bitcoin’s bullish run. Instead, the temporary dip will only fuel an aggressive return in the last months of the year. 

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Market competition and Bitcoin value

Bitcoin remains in its forerunning position because it was the first cryptocurrency on the market when the cryptocurrency industry was first created. Because of this, it has become a household name for a vast majority of the world.

However, other prominent cryptocurrencies have come into conception over the last few years such as Dogecoin, Ripple and Ethereum.

Ethereum for example was specifically designed with network upgrades and the ability to increase processing times for transactions, meaning it could give Bitcoin a run for its money in the future. That said, if you’re thinking about investing in cryptocurrency next year, rather hedge your bets and have stakes in both. 

Why should you invest in Bitcoin?

Bitcoin has become synonymous with innovation and growth. To date, Bitcoin dominates the market when it comes to cryptocurrency investments, and holds the largest market capitalisation of any cryptocurrency today.

There’s no better time than now to join the crypto fray. As cryptocurrency gains traction by the day, people can see the undeniable rewards of investing and mining. If you’re a tech-savvy person, mining is an option. 

If you want to make the most out of your coins and take advantage of bitcoin’s volatility, you can start trading! There are various strategies out there such as day trading or swing trading that can help you accumulate profit for the short term.

However, the best and easiest introduction to Bitcoin you can opt for is to simply buy bitcoins and HODL. This term directly translates to ‘hold on for dear life’ which means to invest in Bitcoin for the long-term. HODL-ers hold onto their coins no matter if the price drops and rises, waiting until the value appreciates before they sell their coins. 

Before you can start either trading or investing in crypto, you must first learn where and how to buy your bitcoins. Read on to find out more!

How to buy bitcoins

To complete your introduction to Bitcoin, learn more about the several ways you can buy Bitcoin. Their website simplifies it by giving three options: through Bitcoin exchange sites, browsing a peer-to-peer or P2P directory, and using a Bitcoin ATM. Each one offers different levels of convenience and speed so you can check them out and pick which one suits your preference.

1. Bitcoin exchange sites

Exchange sites let you buy bitcoins with your bank account or debit and credit cards. It’s as easy as inputting your financial details and clicking a magic button. When you use your bank account, it can take a few days before you receive your bitcoins because of the confirmation process.

If you opt to buy using your debit and credit cards, you will receive your purchase faster, usually in a matter of a few minutes. The fee is higher for this method but you get it instantly without waiting for days. It’s best to take note of this since the price of Bitcoin swings every day and can fluctuate drastically. So chances are, by the time you receive the bitcoins you purchased 5 days earlier, they might not have the same price they had when you first bought them. 

If you want to buy your bitcoins quickly and the price is low, then you might want to consider this factor.

2. Peer-to-Peer directories

You can search and go over various sellers of Bitcoin in Peer-to-Peer or P2P directories and choose who to buy from. Sites like Binance exchange and LocalBitcoins offer an open-source platform for cryptocurrency buyers and sellers to interact and make transactions with each other. 

Of course, this entails a certain level of trust since you’re making exchanges with a person and not through a certified medium. Fortunately, seller reviews and feedback scores can help you in making a decision. The plus side of P2P directories is that the transaction happens instantaneously and usually for a lower transaction fee compared to exchanges.

3. Bitcoin ATM

Just like your local bank ATM, Bitcoin ATMs are terminals where you can buy bitcoins with cash. Instead of using cards and bank accounts, all you need is the QR code of your wallet to where your purchase will be transferred to. After the machine scans your code, you can then insert the amount of cash you want to exchange for bitcoins. 

You can also use this machine to sell your Bitcoin and receive cash in return. Here’s how it works: Choose the amount of cash you want to receive in exchange for some bitcoins. The machine prints out a QR code containing the amount you want to sell and the address where to transfer your Bitcoin to.

 After confirming the transaction with your wallet, you’ll get a message saying your Bitcoin is arriving at the machine. Scan the code to receive your cash. Sites like Coin ATM Radar lets you find the nearest Bitcoin ATM that you can use for your convenience.

What makes Bitcoin ATMs different from online exchange sites is that you won’t be required to give any personal details or bring out an ID. There’s also no bank involved. So, if you don’t want your details stored in online exchanges then physical terminals are perfect for you. 

Where to store your bitcoins

Storage is vital to having Bitcoin. Owners are responsible for their BTC because there’s nobody to call to get it back once it is lost. BTC storage can be split into the following goals:

  • BTC verification
  • Avoiding loss of BTC
  • Easy access for transactions
  • Protection against theft
  • Privacy and security from spying

The most common way of keeping BTC is through cryptocurrency wallets. There are different kinds of digital wallets to cater to specific needs. The most recommended platform is Coinbase because of how easy it is to buy, sell, and hold cryptocurrencies.

Cold storage is also a means to stash BTC. Bitaddress.org is a popular tool that can securely generate one or more Bitcoin addresses for offline use or secure offline storage.

Owners are urged to have their wallet generate a seed phrase that is a list of words containing all the data needed to recover Bitcoin funds on-chain. This seed phrase should then be saved on paper and stored in one or multiple secure places. Moreover, the wallet should be backed by the owner’s full node.

How to earn and increase bitcoins

1. Micro-earnings

This method is comparably smaller in scale in terms of effort compared to Bitcoin mining. For micro-earnings, all you need to do is complete a bunch of micro-tasks such as viewing ads on sites, answering surveys, playing games, etc. The payoff is smaller, but this is probably the most secure way of adding some numbers to your bitcoins.

Plenty of apps and sites offer this kind of exchange and one of the most popular is FeaturePoints. Earn points by answering surveys, downloading apps, etc. then you can claim rewards with those points including bitcoins.

Storm is another similar app where you complete tasks such as watching ads and playing games to receive bitcoins in your wallet. Another platform where you can earn bitcoins is Lolli. This Bitcoin rewards application lets you earn bitcoins when you shop online by giving you cashback with every purchase.

2. Bitcoin faucets

Bitcoin faucets are websites that reward you with satoshis in exchange for your time in viewing their sites. Satoshi is 0.00000001 Bitcoin, which translates to one-hundredth of a millionth Bitcoin. Those who own faucets sell on-site advertisements and these are what often greets you when opening a Bitcoin faucet site.

On some sites, you can claim your rewards for set intervals such as every five minutes. In FreeBitcoin, one of the well-known faucets, you can drop by every hour and claim your Bitcoin after playing a simple game. Moon Bitcoin gives you more freedom in collecting your rewards. You can leave your faucet for as long as you want and let the amount stack up before you come back and claim a relatively larger amount.

3. Bitcoin investments and trading

Probably the most famous way of increasing your Bitcoin is by investing and trading it. You can hold onto your bitcoins and watch their price rise as the market grows. When the price skyrockets to a point that its value becomes substantial, you can then sell it and receive huge payouts in return.

It’s important to note that the volatility of this method is extremely high since the market can rise or drop any day. The prices of cryptocurrencies in the market remain unstable, with numbers fluctuating every minute or so.

If you’re into investing long-term then you can just leave your bitcoins be and watch how the market moves throughout a couple of days or years.

4. Working for bitcoins

Bitcoin Wages

Instead of receiving your monthly wages in your native currency, it may be possible to request Bitcoin payments. Unsurprisingly, the willingness of employers to embrace this new method of paying people doesn’t match the media hype surrounding cryptocurrencies. However, it is possible and, in the future, it will most likely be standard practice. 

There are a lot of sites available on the Internet where you can scour for jobs and freelance work that pays in Bitcoin. Check out Cointiply or the popular subreddit Jobs4Bitcoins for different job postings. So if you’re willing to do work in graphic design, proofreading, web design, video production and such in exchange for bitcoins, you know where to go.

Bitcoin Affiliates

Another way of earning more bitcoins is by promoting them via affiliate programs. Affiliates are those who promote certain websites for free and later on receive a commission after bringing in paying customers. Lots of Bitcoin exchanges, products, and services have affiliate programs where you can enrol. As an affiliate, you’ll have a unique link that you can share and promote to other people who could be viable clients. 

It’s up to your marketing style on how to promote the site’s products or services. You can reach out on social media platforms and post the links along with your content. Youtube content creators often do this and put their affiliate links in their video descriptions. 

Becoming a Bitcasino affiliate gives you the chance to earn revenue each time one of your contacts places a bet. To put it another way, when you bring players to us using a special link, we’ll give you a share of the money they spend each month.

We won’t go into all the finer details of the system right now (you can find more information on our site and in other blog posts), but the basic premise is this:

  • Tier 1 = Bring us 0 players to receive 25% commission
  • Tier 2 = Bring us 4-10 players to receive 30% commission
  • Tier 3 = Bring us 11-30 players to receive 35% commission
  • Tier 4 = Bring us 31-50 players to receive 40% commission
  • Tier 5 = Bring us 51-100 players to receive 45% commission
  • Tier 6 = Bring us 101 or more to receive 50% commission

As you can see, the more players you convince to bet with us, the larger your cut of their monthly spend will be.

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Once you earn some bitcoins, what’s next?

So after purchasing your bitcoins, what do you do with them? Is it like the money you have in your bank account that you can use to buy stuff online? Can you use it to pay for your morning coffee or late-night snack? The answer to both questions is a resounding yes.

Though Bitcoin is yet to enter the mainstream mode of payment in the global playing field, it certainly has made itself known in the world of cryptocurrencies. Countries like the United Kingdom, Canada, and the United States have physical stores that accept payments with Bitcoin. You can buy your next Subway sandwich just by scanning a QR code and hitting the send button.

As more and more industries embrace the power of cryptocurrencies, the number of places to spend your credits is increasing. Indeed, if you scan the internet today, you’ll find many things you can buy with Bitcoin. To give you an idea of what’s out there, here’s a quick list of options:

  • Flights
  • Computer games
  • Electrical items
  • Beer and coffee
  • Jewellery
  • Pizza
  • Internet services and more

Of course, there’s one major omission from that list. Can you guess what it is? Yes, you’re right, it’s casino gaming! Once you become a member of our site, you’ll be able to use Bitcoin to play all manner of casino games. In fact, unlike other sites that have attempted to join the cryptocurrency movement, we don’t simply offer BTC deposits and withdrawals.

When you become part of our community, you’ll be able to pay, play and more with Bitcoin. The benefit of this is that you never have to worry about your security, currency conversion charges or whether you’ve got the right currency for our games.

On top of being 100% crypto, we also offer one of the largest selections of casino games online. By using a variety of software suppliers, including NetEnt and Ezugi, we’re able to offer you more than 1,300 games. If that’s not enough, we’ve also got a sister site that spreads thousands of sports betting opportunities every week and our lotto draws.

After your introduction to Bitcoin, it’s now your time to spend and have fun with them! Find out how you can start crypto gambling below.

Using Bitcoin cryptocurrencies in online casinos

Bitcoin and other crypto coins were positively made for the online gaming space. It isn’t just the growing popularity of cryptocurrencies such as Bitcoin that has forced online casinos to implement the technology into their platforms. Cryptocurrencies are fast, safe, incredibly effective, and improve the overall playing experience (which makes sense because cryptocurrencies such as Bitcoin were created specifically for this space).

Some of the benefits of using Bitcoin in online casinos include:

Privacy:

Bitcoin is a decentralised unit, owned by no specific organisation. This means that traditional banking institutions or government regulations have no jurisdiction over the coin or the transactions made using the Bitcoin platform.

Fast Transactions:

The speed at which a Bitcoin transaction takes place means that players can wager and withdraw in half the time it would take for a fiat currency transaction to fully process.

Extra Bonuses:

Online casinos are far more likely to offer hefty bonuses and welcome offers to players wagering in BTC and other cryptocurrencies. With weekly cashback giveaways, free spin collections and more, the potential to claim awesome rewards increases as you play. 

How to start Bitcoin gaming in Bitcasino

If you’re looking for a combination of excitement, entertainment and variety, you’ve come to the right place. You can have all of this and not have to worry about making a profit. Sure, it’s nice to turn a small investment into something more substantial through a few clever bets, but it’s not the be-all and end-all. 

When you join us, we make sure that everyone has a good time, regardless of what they spend, the games they play or how their luck is running. That, in our opinion, is the reason you should consider spending your Bitcoin with us. After all, you’ve taken the time to learn how to earn bitcoins and you’ve put in the necessary work to realise your goals, so why not enjoy it.

So, with this in mind, we’ll leave you with a quick introduction to how to become a Bitcoin player at Bitcasino:

Step 1: Navigate to our homepage and click the sign-up button.

Step 2: Input your details, including your date of birth to confirm you’re at least 18-years-old.

Step 3: Verify your account and then head to the cashier page.

Step 4: Use the ‘buy bitcoins; option to find an exchange and convert some of your native currency to Bitcoin if you don’t already have some funds online.

Step 5: Once you’ve used a recommended exchange or you’ve accessed your existing funds, select the “deposit” option on your account page to reveal our Bitcoin wallet address.

Step 6: Copy our address and enter it, along with the amount you wish to deposit, inside your Bitcoin wallet.

Step 7: Wait for a few seconds and your funds should appear in your Bitcasino account.

Step 8: Click on the “casino” option, scroll through our lobby and press “play” on a game that takes your fancy.

Overall, once you take your introduction to Bitcoin to heart and follow the steps above, you’ll find plenty of ways to have some serious fun in the cryptocurrency world. We’re looking forward to having you with us!

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Revolutionising the world bit by bit

While we can’t guarantee that the highs of the 2020 mooning will repeat themselves any time soon, what we do know is that investing in Bitcoin is a surefire, mid-term strategy for the foreseeable future.

This is the digital path that Bitcasino is forging today. Standing strong in the cryptocurrency revolution and creating a gaming platform that prides itself in offering the best all-around experience for online casino fans the world over. 

From our instant processing times and quick withdrawals to the ease of changing currencies between platforms, visit Bitcasino, wager with Bitcoin to experience Fun, Fast and Fair gaming with a whole host of different cryptocurrencies.

After this introduction to Bitcoin, witness firsthand how this groundbreaking technology has been seamlessly integrated into an online space. Head over to Bitcasino and check out all the cryptocurrencies we support. Get playing today and skyrocket into a galaxy of gaming.


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Introduction to Bitcoin: Everything you need to know