Around the Globe there are few people who probably already didn’t heard about controversial virtual currency called Bitcoin. For those who are aware for the first time with this word, here is a short presentation. Bitcoin appeared in 2009, as creation of the Japanese math and programmer Satoshi Nakamoto and is decentralized payment, safe and user-generated inflation system. The system is based on cryptography, which is generated using Bitcoin, through a process called mining. It ‘s like digging for gold in the ground. But just as gold, virtual currency will be more difficult to obtain because it is programmed to have a fixed number of Bitcoin. If at the beginning persons were able to use their computers to create Bitcoin, now is need of more powerful computing systems and a long time, so that the value of Bitcoin wills more than likely.
At this time, a currency Bitcoin is worth $ 575, but the exchange rate is very unstable and can fluctuate greatly, even from one minute to another. Bitcoin infrastructure ingenuity is that all transactions are anonymous. Users have an address and a digital wallet, but no one knows who is behind them. Anyone can buy anything and can send money to anyone, no extra fees, but this can be speculated criminals who can take advantage of the anonymity system.
What will happen with Bitcoin currency and whether it will be a long-term solution remains to be seen. The fact is that there are more and more stores that accept Bitcoin payments have raised special ATMs , and its virtual currency popularity is growing. There has been exponential growth in the number of Bitcoin Casino found on the bitcointalk.org forums. Below we will explore the history and how Bitcoin has become what it is today.
When in 2009, an anonymous programmer started a very ambitious open source project: a virtual currency peer-to-peer, user control, where there can be no central authority, using a very good cryptographic design prevents counterfeiting currency.
Bitcoin (BTC ) is the virtual equivalent of gold. His algorithm, it will issue approximately 21 million BTC based on a generation algorithm which “emulates” the extraction of gold. Last coin will be generated in 2140.
The Bitcoin generation rate is as follows: BTC circulated by “mining”, uses a program that solves a mathematical problem. In about 10 minutes, is “extracted” 0.00000089 BTC, so do not expect great wealth. This currency is created in limited quantities, and get behind an effort of primary “mining”, cannot be on inflation and the amount of money is predictable and will be a limited time.
In addition to gold, BTC can be stored more easily and can be used for transactions.
The big advantage of using Bitcoin is that people are witnessing a small-scale experiment which would mean the gold standard, given that there would be no central bank. Here are the main problems of this system:
- High volatility- the BTC value against the USD/other currencies varies significantly in daily. Merchandise, today would cost 10 BTC, over two days would be worth 7 or 13. Remember, there is inflation but deflation of prices. It’s hard to sell a commodity that do not know how in the evening will be worth the money in the morning.
- Already had his first Great Depression- After over two months, the BTC against the dollar increased 30 times in just five days, BTC has depreciated by 73 %, then back up close on these two days. In real life such currency variations are not supported. What if the day of the crash have received salary and get a loan? Much of the population would instantly become poor.
- It is a lack of central authority- BTC dollar change through “scholarships . These scholarships are illiquid, not allow exchange value and are susceptible to attacks and converting large amounts you luck. In the absence of a “central exchange” with the ability to absorb shocks was a sale of 500,000 BTC enough to collapse the exchange rate.
BTC is basically a small pyramid scheme: first “miners” were those who were able to quickly obtain the largest amount of currency. The system was designed as an island of stability to support online transactions small, non- inflationary conditions and without any control. Instead, BTC is now just a speculation support, illiquid and highly volatile.
At this point, to get the equivalent of USD 1 BTC have to spend 1.2 USD (in electricity consumption for “mining”). It would not be a surprise if the solution is increasing the number of coins in circulation (i.e. inflation).
Bitcoin current problems are evidence that the gold standard is a small and inadequate solution world today. Administrative limitation does not guarantee in any way the currency price stability.
Bitcoin occupied more space in the press, but the global hospitality industry this is a remote probability, except for independent hotels such as Las Vegas Casino Hotel, which supports this currency at reception, gift shops and restaurants.
Some independent hotels, most economic range, accept Bitcoin as payment, but it is unlikely that chains to follow this trend, at least for now.
An even smaller number of OTA accept this currency or those awards instead of miles for flights and points of hotel loyalty programs. In this respect, destiny was the first agency to accept payments with virtual currency, Bitcoin. Also Polish and Austrian travel agencies were the first tourists who bought this virtual currency.
Hotels and OTA transactions must convert their local currency Bitcoin before they add to their profit and loss.
In the hospitality industry reduce its use mainly to independent owners with an interest in this coin and experience immediate power.
A hotel in Buenos Aires, already accept Bitcoin payment, because Bitcoin coins will certainly occupy a larger piece of the distribution channels, being easy to use and eliminates intermediaries and fees. But the hotel representative recognizes that the time has made few transactions with it.
Another hotel that supports this currency is a Danish one. His managing director, has recognized as one customer who used it to secure the payment has decided to use the credit card for final payment.
Photographer forum that organize photo session on hotel wanted to be paid with Bitcoin money, but it is still a very important part of our investment strategy. This may be an opportunity later, but good advertising comes in their way.
On 22 January, the D Las Vegas Casino Hotel, with 638 rooms, and Golden Gate Hotel Casino Las Vegas, with 121 rooms, began to accept the Bitcoin virtual currency as payment methods. The first is held by Lexington Legacy, while the second is emblematic because it is the oldest casino in the city, in operation since 1906.
Co- owner and CEO of both hotels, Derek Stevens, said the area of the city has become a hub of technology and customers increasingly ask more often about the possibility of this method of payment. Therefore, he acknowledges that they had monitored Bitcoin evolution and they are ready to see how this system works.
Both receptions and all restaurants in both hotels are equipped with devices that support payment with these coins, although customers will still have to provide a credit card to check -in.
In his opinion, the early adopters this payment method will benefit from the promotion of its use. There are still regulatory and tax issues discussed, but will be resolved this year, at the end of which there will be more clarity on this issue.
D Las Vegas Casino Hotel, with 638 rooms, also allows the use of this virtual currency as payment.
The HowardJohnsonInnFullertonDaysInnConferenceCenter and Park, both in Southern California, have experimented with Bitcoin in 2011. The owner of both hotels, Jefferson Kim admits that were no problems in using them, but it was simply a waste of time anyway because they had to convert them into dollars.
Other hotels that also support this coin are The Sarf Runcha in San Juan del Sur (Nicaragua ), L’ Hotel Coppedè Rome in Rome, Pedro ‘s Hotel in Belize, and Urban Living Suites in Toronto.
Even that Bitcoin is email money, according to experts, his impact onto the world of gambling and online bets increase, as is a very solid payment method if is watched from the point of view of his anonymity. This is a future business, because Bitcoin proponents state that this may be a solution for hoteliers in countries prone to controlling credit hyperinflation and political instability, ad also a good way to use it in the betting system, especially in the online gambling.
Big online gambling companies firmly believes that this coin will have an important role in the future. In his own native words, because is a simple matter of cash management and Bitcoin are the simplest transactions could be made. It is simple to implement. This is like the e- mail money method.
In their view, increasingly more booking engine and payment platforms will begin to accept that the hotel will be followed by other parts from betting industry.
The realization grade is estimated more than 50-60 % of all transactions in virtual currency Bitcoin betting games bet make money using many unregulated parlors.
As is know Bitcoin is the latest player in the online gambling.
Gaming platforms using Bitcoin appear all over the internet to facilitate unregulated and very lucrative markets .
By sending and receiving transaction costs to a minimum, it is very lucrative practice. This paying system manages to escape legislators and limits the frequency and scale of bets.
Some operators offering betting services using Bitcoin managed to facilitate the production of over 2 billion $ worth of bets in a single year of operation.
Many build their image as dice games, while others have gone so far as to develop alternatives lottery, slot and poker games.
Betting and sports lovers have, in turn, access to markets bets made by Bitcoin. Crypto- currency is also preferred by those who are betting due to the possibility of anonymity due to the instantaneous and time of the transaction, compared with traditional methods of payment.
However, the service life of betting using Bitcoin tends to be low. Rapid growth easily plucked out depositors is too tempting for some, but there are always exceptions to the rule. Bitcoin bookmakers are genuine and are able to pay large amounts when they know how to bet.
The exchange rate of Bitcoin virtual currency came today during stock market transactions online at MT.Gox at 1,093 dollars.
The growth rate was recorded immediately after the Zynga Company, which creates games for social networks began using Bitcoin. According to statistics, about 10% of Internet users use the company’s games.
In November 2013, the cost of a Bitcoin has passed the threshold of one thousand dollars. In December, the exchange rate fell below $ 500 after China’s central bank banned the real one virtual currency change.
Bitcoin currency was put into circulation in January 2009 and then cost 5 U.S. cents.
Robocoin announced that will have first U.S. Bitcoin ATM that will allow users to buy or sell this virtual currency .
The kiosks will be installed in Seattle and Austin, Texas. It looks like an ATM but additionally have scanners to recognize acts of identification such as a driver’s license or passport .
ATMs will allow the exchange of virtual currencies in cash or introducing Bitcoin money to buy Bitcoin by transferring funds or a virtual wallet on the Smartphone.
Bitcoin currency was launched in 2008 and is traded by a global network of computers. Bitcoin is not supported by any company or government and has no assets behind it, but its issuance is strictly controlled in a similar manner practiced by central banks.
Robocoin Company, headquartered in Las Vegas, has installed the first ATM Bitcoin in Vancouver last fall and will begin to operate one in Calgary, Alberta in February. Robocoin plans to install ATMs Bitcoin in Asia and Europe.
Many stores began to accept payment for goods and services in the virtual currency Bitcoin.
As can be seen the impact of Bitcoin is not only on the hotels and online gambling area, but also has grow into other domains, as this relatively new payment method started his ascension.
For gamblers and casinos players this is a good opportunity to test their fortune and inspiration as the anonymity of this system allows them to do that.
What will happen to Bitcoin system, with his use in the gambling domain nobody knows, but, what is sure is that this system was brought exaltation around the Globe.