Part of the iPoker network, WinPoker has introduced Bitcoin as an official payment method for the room. There is a chance that the rest of the skins are also to follow suit in the near future; Bitcoin payments can be transferred from any Bitcoin e-wallet with an average transfer time of 10 minutes.
Following the deposit, the room converts the Bitcoin(s) to real money in the currency of the player’s account. If you want to withdraw to your Bitcoin wallet, you can do that as well, reversing the method in the same period of time.
What is Bitcoin?
Bitcoin is a virtual currency with an actual value and the ability to be converted into real money. The system was first introduced in a study by an individual called Satoshi Nakamoto. It has since become apparent that Nakamoto is a fictional person and it remains a mystery who is or are behind the name. It goes without saying that the phenomenon brought about an entire cult surrounding it.
Bitcoin was launched in 2009, with its name referring at the same time to both the open source software managing the currency and the created distribution network. Bitcoin has no central financial institution behind it, nor any government, to manipulate the exchange rates, which makes it appeal to many as the most secure currency in the world. There are no bank whatsoever that is 100% above the risk of going bankrupt and losing clients’ money. The Bitcoin network, in comparison, is virtual and only the complete collapse of the internet itself would jeopardise it.
The total number of Bitcoins in use will in time reach 21 million and will never exceed it. In 2013, the half of the total amount is expected to be issued, while three quarters of it will be available by 2017. With the approach of the limit, Bitcoins will increase in value but they can be divided infinitely: today, eight decimals (0.000 000 01) are the smallest available units to pay with but it can be further increased to follow deflation, enabling the wide spreading of the currency.
Compared to its introduction, the exchange rates for Bitcoins are currently at an all-time peak with one Bitcoin equalling $42. One can purchase or redeem Bitcoins at some specialised exchange websites.
Graph showing the changes of value of one Bitcoin since its release:
Bitcoin has started to increase in value rapidly in recent months, primarily due to the fact that more and more websites accept it as a payment method. Most recently publication platform Wordpress and community news page Reddit joined the growing list of clients. Given the outstanding popularity of these sites, they mediate the method to a wide audience, making it an increasingly accepted payment solution. This week, domain name provider Namecheap has also introduced Bitcoin as an accepted method.
In addition to its increased stability, Bitcoin offers never before seen anonymity, which can favour online poker players as well. Contrary to conventional financial institutions that protect customers by withholding information on the individual transactions, Bitcoin does not require public personal data from the clients to begin with. As long as individuals do not publish their personal information, it is only the amount transferred between two addresses that is traceable. Only the Bitcoin addresses of the sender and the recipient appear in the network and in the decentralised database: this address is the public half of an encrypted pair of keys that is used as a signature for transactions by the single holder of the private half of the key.
Advantages of Bitcoin in online poker
The use of Bitcoin has gained increased popularity in the online poker community since Back Friday and the appearance of closed markets. This is due to the fact that Bitcoin is not an officially recognised currency, which, for example, allows US players to play real money poker without involving actual money. This does not mean that, say, iPoker will allow US players from now on, as real money sites remain to be blocked in the USA. What this implies is the possibility to launch Bitcoin-only rooms that are available to players from closed markets as well: Bitcoin is not an official currency, therefore rooms that accept Bitcoin payments only are legally considered play money sites.
Considering that iPoker is a real money network, it is not the inclusion of players from closed markets that justifies the introduction of Bitcoin but its extremely small transaction costs. While other payment providers can take a 3-8% commission on transfers, it is only a couple of cents when Bitcoin is used. Moreover, players can take advantage of the famed anonymity of the system.
There are a number of significant advantages of a decentralised, anonymous currency that can be exploited by players from the US or other closed markets, where the situation of payment processors is problematic, when playing online. But what are the advantages of Bitcoin for poker rooms interested in other markets?
This question is answered by WinPoker spokesman James Lucas in an interview for pokerfuse.com:
“Bitcoin affords players a great deal of convenience, privacy, security, and accessibility. It is becoming increasingly ubiquitous, and Bitcoin can now be bought through a multitude of online and offline vendors—players can link their bank accounts for increased ease of use, or buy Bitcoin in cash anonymously at one of thousands of offline shopfronts around the world.
“Another great feature of Bitcoin is that transactions are anonymous. Players control their own wallets, and choose what (if any) personal information to associate with them.
“There is no reliance on any ewallet company, bank or payment processor. Nobody but the owner can access—or freeze—their funds. Users can send funds peer-to-peer to any of their friends at no cost, and they can keep their wallets offline for additional protection. Players are in complete control of their own funds.
“The reduction in fraud risk is another big financial advantage to the operator. Bitcoin is founded on the idea that there are no charge-backs—once a transaction is made, its complete, and there is no central authority to arbitrate disputes—so exposure is reduced substancially.
“Because of our reduced fraud risk, we can take very large Bitcoin deposits from players that wish to play high-stakes immediately, and don’t wish to wait for a bank wire.
“We believe the ability to transact at no cost, to and from anywhere in the world, completely anonymously, is an exciting prospect for many gamers around the world. Players without access to bank or credit card facilities, or in areas with poor financial infrastructure, can have access to our games easily and cheaply. Also, it allows players to make small deposits – they can deposit as little as a single dollar, as our transaction fees are low,” Lucas explained to pokerfuse.
Following the deposit, the room converts the Bitcoin(s) to real money in the currency of the player’s account. If you want to withdraw to your Bitcoin wallet, you can do that as well, reversing the method in the same period of time.
What is Bitcoin?
Bitcoin is a virtual currency with an actual value and the ability to be converted into real money. The system was first introduced in a study by an individual called Satoshi Nakamoto. It has since become apparent that Nakamoto is a fictional person and it remains a mystery who is or are behind the name. It goes without saying that the phenomenon brought about an entire cult surrounding it.
Bitcoin was launched in 2009, with its name referring at the same time to both the open source software managing the currency and the created distribution network. Bitcoin has no central financial institution behind it, nor any government, to manipulate the exchange rates, which makes it appeal to many as the most secure currency in the world. There are no bank whatsoever that is 100% above the risk of going bankrupt and losing clients’ money. The Bitcoin network, in comparison, is virtual and only the complete collapse of the internet itself would jeopardise it.
The total number of Bitcoins in use will in time reach 21 million and will never exceed it. In 2013, the half of the total amount is expected to be issued, while three quarters of it will be available by 2017. With the approach of the limit, Bitcoins will increase in value but they can be divided infinitely: today, eight decimals (0.000 000 01) are the smallest available units to pay with but it can be further increased to follow deflation, enabling the wide spreading of the currency.
Compared to its introduction, the exchange rates for Bitcoins are currently at an all-time peak with one Bitcoin equalling $42. One can purchase or redeem Bitcoins at some specialised exchange websites.
Graph showing the changes of value of one Bitcoin since its release:
Bitcoin has started to increase in value rapidly in recent months, primarily due to the fact that more and more websites accept it as a payment method. Most recently publication platform Wordpress and community news page Reddit joined the growing list of clients. Given the outstanding popularity of these sites, they mediate the method to a wide audience, making it an increasingly accepted payment solution. This week, domain name provider Namecheap has also introduced Bitcoin as an accepted method.
In addition to its increased stability, Bitcoin offers never before seen anonymity, which can favour online poker players as well. Contrary to conventional financial institutions that protect customers by withholding information on the individual transactions, Bitcoin does not require public personal data from the clients to begin with. As long as individuals do not publish their personal information, it is only the amount transferred between two addresses that is traceable. Only the Bitcoin addresses of the sender and the recipient appear in the network and in the decentralised database: this address is the public half of an encrypted pair of keys that is used as a signature for transactions by the single holder of the private half of the key.
Advantages of Bitcoin in online poker
The use of Bitcoin has gained increased popularity in the online poker community since Back Friday and the appearance of closed markets. This is due to the fact that Bitcoin is not an officially recognised currency, which, for example, allows US players to play real money poker without involving actual money. This does not mean that, say, iPoker will allow US players from now on, as real money sites remain to be blocked in the USA. What this implies is the possibility to launch Bitcoin-only rooms that are available to players from closed markets as well: Bitcoin is not an official currency, therefore rooms that accept Bitcoin payments only are legally considered play money sites.
Considering that iPoker is a real money network, it is not the inclusion of players from closed markets that justifies the introduction of Bitcoin but its extremely small transaction costs. While other payment providers can take a 3-8% commission on transfers, it is only a couple of cents when Bitcoin is used. Moreover, players can take advantage of the famed anonymity of the system.
There are a number of significant advantages of a decentralised, anonymous currency that can be exploited by players from the US or other closed markets, where the situation of payment processors is problematic, when playing online. But what are the advantages of Bitcoin for poker rooms interested in other markets?
This question is answered by WinPoker spokesman James Lucas in an interview for pokerfuse.com:
“Bitcoin affords players a great deal of convenience, privacy, security, and accessibility. It is becoming increasingly ubiquitous, and Bitcoin can now be bought through a multitude of online and offline vendors—players can link their bank accounts for increased ease of use, or buy Bitcoin in cash anonymously at one of thousands of offline shopfronts around the world.
“Another great feature of Bitcoin is that transactions are anonymous. Players control their own wallets, and choose what (if any) personal information to associate with them.
“There is no reliance on any ewallet company, bank or payment processor. Nobody but the owner can access—or freeze—their funds. Users can send funds peer-to-peer to any of their friends at no cost, and they can keep their wallets offline for additional protection. Players are in complete control of their own funds.
“The reduction in fraud risk is another big financial advantage to the operator. Bitcoin is founded on the idea that there are no charge-backs—once a transaction is made, its complete, and there is no central authority to arbitrate disputes—so exposure is reduced substancially.
“Because of our reduced fraud risk, we can take very large Bitcoin deposits from players that wish to play high-stakes immediately, and don’t wish to wait for a bank wire.
“We believe the ability to transact at no cost, to and from anywhere in the world, completely anonymously, is an exciting prospect for many gamers around the world. Players without access to bank or credit card facilities, or in areas with poor financial infrastructure, can have access to our games easily and cheaply. Also, it allows players to make small deposits – they can deposit as little as a single dollar, as our transaction fees are low,” Lucas explained to pokerfuse.
