Bitcoin Casino Blog
Tips & tricks
Bitcoin Mining vs Bitcoin Gambling: Why Miners Can Teach Gamblers a Thing or Two
Bitcoin mining vs Bitcoin gambling, surely they don’t really have much in common? In some respects, you’d be right. Bitcoin mining and Bitcoin gambling are completely different activities and the only real connection they have is that you need Bitcoin mining if you want Bitcoins that you can ultimately bet with.
However, if we stop and think about it for a moment, the idea of Bitcoin mining vs Bitcoin gambling being polar opposites might not be as unbreakable as you might think. Have we lost our minds? Possibly, but stick with us for a few minutes and we’ll tell you why you can improve your betting results by understanding the process of mining.
What is Bitcoin Mining?
The specifics of Bitcoin mining might be a little tricky to understand if you’re not very tech-savvy, but the basic principle isn’t. Basically, Bitcoin mining is the process of creating new Bitcoins by solving complex equations that, in turn, verify blocks of transactions. To put it another way, networks of computers use their processing power to decode blocks of information (the blockchain) and the first computer to “solve” the equation gets reward with a payment: some Bitcoins.
The great thing about the underlying mechanics of Bitcoin mining is that everything is automated. The network of computers working to solve the equations doesn’t require any human intervention and this helps to make the process more efficient and, in many respects, safer. So, even if you don’t delve into actual details of how computers solve equations and the specifics involved in the overall operation, at least now you know that Bitcoin mining is the automated process that creates Bitcoins.
What is Bitcoin Gambling?
As you’d expect, Bitcoin gambling is fairly easy to wrap your head around: it’s a way to gamble using Bitcoins. However, it’s interesting to note where it came from. Back in the late nineties, software developers such as Playtech started putting out online casino games. Although basic in nature, these games used random number generators to create fair results and, once this technology was paired with payment processors, online gambling was born.
Ever since the first online casinos went live, people have been using traditional currencies such as GBP, USD and EUR to bet online. However, thanks to the general public’s increasing acceptance of Bitcoin, you can now play blackjack, roulette, slots, lottery games and more using the cryptocurrency. In fact, when you join us at BitCasino, you’ll be able to make deposits, place bets, pick up bonuses and claim your winnings in Bitcoin and nothing but Bitcoin.
Bitcoin Mining vs Bitcoin Gambling: They Aren’t So Different
OK, so now we’ve broken down the basics, it’s easy to see the differences when it comes to Bitcoin mining vs Bitcoin gambling: one is the process of making Bitcoins, the other is the process of trying to win some. However, when you think about it a bit more, Bitcoin mining vs Bitcoin gambling do share some similarities.
The first similarity is that both help you earn a prize. If you’re a Bitcoin miner (someone that owns and computers/s that mine coins), you know that you’ll be given a set prize when your computer system solves one of the equations we mentioned earlier. In the Bitcoin betting world, you also know that there is a set prize at the end of the proverbial rainbow. At the blackjack tables, you’ll now that natural blackjack is worth 3:2 on your bet. Similarly, in roulette, you know that you’ll always win 35x your bet if you bet on a correct number.
What’s also true when it comes to mining is that a prize is never guaranteed. Yes, the “reward” is set in stone, but no single computer/system is guaranteed to win it. Basically, every computer in the “network” is racing against the rest of them in a bid to solve an equation. So, the person in charge of a Bitcoin mining operation can’t always be certain they will get something for their efforts.
This is virtually identical to the mindset a Bitcoin gambler must adopt. Although they know there is a set prize, they can’t ever be sure they will win. In fact, just as a miner could make all the right moves and still not get rewarded, the same is true in the betting world. For example, a skilled Bitcoin blackjack player will know that it’s best to stand on 13 when the dealer is showing a 4. However, just because this is the best mathematical move to make, it’s not always guaranteed to pay off.
Mining Shows You How to Think Like a Pro Bitcoin Bettor
Now, it wouldn’t be right to say that bitcoin mining vs bitcoin gambling is comparing like for like. In some ways, the former has a lot more certainty to it. However, when you actually look at the mechanics behind each activity, there are some similarities. Will an understanding of Bitcoin mining help you make money at BitCasino? Not really, but there’s certainly some value in understanding that nothing is ever guaranteed.
Just because you make all the right moves at all the right times, whether it’s mining or gambling, it doesn’t mean you’ll always win. As a newbie, this is something that’s not always easy to accept and that’s only natural. Let’s say you’ve read a Bitcoin baccarat strategy guide and now have the same level of knowledge as a pro, surely you should win all the time, right? Wrong. In reality, even professional casino players will win and lose many times in their career. However, what they are often able to do is win more than they lose, and make sure they’ve increased their bankroll at the end of the day as often as possible.
Even if their overall win rate is 52%, this 2% above even is their profit. Once you understand this, you’ll not only have a better handle on your bankroll, but you’ll be less emotional when you lose. The upshot of this is that you’re more rational and, therefore, make better decisions. So, even though the discussion of Bitcoin mining vs Bitcoin gambling might seem a little unusual, the breakdown can actually teach you a lot about how you should think about your results.