Why is Bitcoin Gaining So Much Popularity?
There are many different ways to deposit money in order to play jackpot slots and all of the hundreds of other games we offer at Jackpot Capital online casino. The most common deposit method is still the good old credit card but there are several other deposit methods as well.
Ewallets Provide More Privacy
Electronic wallets, or ewallets, have risen as a great deposit method since they often an extra layer of privacy. When you use your credit card to make a deposit at Jackpot Capital casino, you allow your bank to know exactly where you are sending your money. Most gamers don’t care about that but some do.
When you send money to an ewallet, the bank knows that you have done so but they don’t know the purpose of your sending money to the ewallet. You might be buying clothes, collectibles, or any of thousands of other things we all buy these days through the internet.
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Bitcoin Enters the Money Markets
At Jackpot Capital, we have started accepting deposits and making withdrawals in bitcoin. Bitcoin is erroneously called a cryptocurrency because the people who dislike the very existence of bitcoin want everyone to think that they are false currencies. In fact, there are many so-called cryptocurrencies and they are very real!
We decided that in the interest of giving gamers the best information about every banking method, we would run a tutorial about bitcoin. We expect the tutorial to run at least two articles so look for the follow-up article that will come soon after this one is published on our homepage.
Why Do We Say that Bitcoins are Money?
In order to understand the answer, we have to backtrack a bit and talk about what money is.
Money Represents Value
Many different commodities have been used a money in different countries and at different times in history. The most enduring forms of money are gold and silver. Gold and silver are excellent forms of money because they are durable.
Durability is a major element in gaining the public’s confidence that the commodity that the society wants to use as money is actually as valuable as the people say it is. For example, a bushel of wheat could also be used as money but wheat has a very short shelf life compared to gold or silver.
Money represents the inherent value of any good or service one person can provide in exchange for something of value that he or she can then use to buy other goods or services.
Money Circulates
The process by which many people use the same commodity or money to buy many different goods and services is called circulation. Money has to be able to circulate in order for people to consider it to be genuine money.
Gold and silver have a major drawback as money in that they are hard for people to carry around as the money circulates. Countries used to issue gold and silver coins so that people would be able to carry a small number of coins rather than a large block of gold or silver.
Even with the advent of coins, people found that they were still too heavy to carry around. So, countries began to issue paper money. Paper money is very easy to carry around. For many years, it was possible to take gold to the central bank and get paper money in exchange. The paper money represented the gold that was exchanged for it.
In other words, paper money was backed by gold and silver.
It was also possible to take paper money to the bank and get gold in exchange.
Money has to be Trusted
Whatever a society used to back paper money had to be trusted overwhelmingly.
In the past most people trusted gold to retain its inherent value over time. Nevertheless, many political movements specifically came about because the leaders of these movements hated gold. Gold was seen as an artificial form of money.
In fact, gold is an artificial form of money. The Native Americans of Central and South America did not value gold as much as the European explores did so the Native Americans traded gold for trinkets! More importantly, presidential candidates in the late 19th century in the United Sates ran on a platform to end the use of gold as backing for the American dollar.
These campaigns all failed.
Paper Money is a Kind of Receipt
When you buy something, you usually get a receipt. Paper money is also a receipt. When money was backed by gold, the paper money was a receipt for the equal value in gold.
However, every nation in the world has gone off the “gold standard”. That means that paper money is not backed by gold anymore. Today, paper money is backed by the good reputation of the government that issues the paper money.
Some People Fear the Future of Government Money
Government money is also called fiat money because, according to the law, anyone selling a good or service has to accept the government’s money as a medium of exchange.
What Did the People Who Feared Fiat Money Do?
They created a so-called cryptocurrency! Bitcoin was just the first such currency but it is far from the last.
When paper money was backed by gold and silver, the very fact that it was on paper meant that money was practical and convenient. But, when people start to question the practicality of a government’s money, the convenience falls aside!
Jackpot Capital Allows Gamers to Deposit and Withdraw in Bitcoin
As an online casino, we don’t take political sides on any issue. We simply want our gamers to feel as secure as possible when they deposit and withdraw money at the casino. So, we have begun to accept bitcoin for both deposit and withdrawal, not as a political statement, but because a critical mass of our gamers want to use bitcoin for their transactions with us.
We Will Learn More about Bitcoin in the Next Article
You don’t really have to understand bitcoin in depth to use it as a banking method. Still, we want to explain how bitcoins are created, how people use them to buy goods and services, and what the implications of bitcoin are for fiat currencies everywhere going forward.
In the meantime, we wish everyone a wonderful, fun, and entertaining time playing our many games regardless of which deposit method you might use!
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