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Bitcoin transactions have increased enormously over the past few years. Image Credit: Kanchanara/Unsplash

Today, bitcoin is increasingly perceived as an object of speculation. The price of the cryptocurrency keeps reaching new highs. The oldest and best-known cryptocurrency was originally intended as a digital means of payment that is intended to offer maximum anonymity thanks to its decentralized nature. Of course, this raises the question of whether Bitcoin is actually used for many transactions.

Immense increase in transactions

In 2009, the world of finance was to change forever. Cryptocurrencies saw the light of day with Bitcoin and were intended to offer an alternative to traditional money. No higher authority, no monitoring, no tracing of transactions – that was the initial idea of Bitcoin. And even if the cryptocurrency is being circulated to the public today as an object of speculation, it is more popular than ever when it comes to payments.

According to Statista, the total number of Bitcoin transactions has steadily increased over the past five years. In February 2017, the cryptocurrency was used almost 200 million times to make payments. At the end of 2017, the number was already 287 million. Over time, the relevance of Bitcoin increased and with it the monthly transactions. As of December 2020, almost 600 million payments went back to the digital currency. This corresponds to an increase of 300 percent compared to February 2017. The development does not seem to come to an end for the time being, since almost 700 million transactions were registered via Bitcoin in February 2022.

Bitcoin payments in online casinos are becoming increasingly popular

The growing relevance of Bitcoin is noticeable in a wide variety of economic sectors on the Internet. A big beneficiary is the digital gambling industry, which now also offers Bitcoin as a means of payment in addition to common payment methods such as credit cards, bank transfers and external payment services (e.g. Klaran and paysafecard) – but that’s not all!

The cryptocurrency is so deeply entrenched in the digital segment of the gambling industry today that bitcoin payments in online casinos are becoming increasingly popular. Numerous platforms accept the digital means of payment. Other providers even go one step further and focus exclusively on Bitcoin. Which bitcoin casinos stand out in particular can be seen at onlinecasinosdeutschland.com.

Paying with Bitcoin – how does that even work?

For many people, Bitcoin is still quite abstract. A payment process with the cryptocurrency is accordingly new territory. But no need to worry! Transactions via Bitcoin are really not rocket science and can be completed in just a few steps.

Step 1: Buy Bitcoins

First of all, of course, you have to own bitcoins in order to be able to pay with them. The cryptocurrency can be conveniently bought from a so-called crypto exchange on the Internet. It is basically a marketplace for all kinds of cryptocurrencies. A customer account is required to use such a stock exchange, but this is quick and free of charge.

On most marketplaces, fiat money (conventional money such as euros or US dollars) must be paid into the customer account in advance to purchase bitcoins. This is usually done by credit card or bank transfer. With a few clicks, the desired amount is in your own customer account.

But there is another way. With some providers, bitcoins and other cryptocurrencies can be bought directly without depositing money beforehand. The procedure is similar to that of an online shop. Still other crypto exchanges work like a trading platform. Here the money is first deposited and then a buy order is placed. The price at which the desired amount of Bitcoins would like to be bought is specified. The seller can then decide whether to reject or accept the offer.

Step 2: Create your own wallet

Almost all crypto exchanges offer an integrated online wallet. Such a digital wallet is necessary to store cryptocurrencies. The direct integration into the marketplace, which is used anyway, is correspondingly useful. Wallets consist of a public address (public key) and a private key (private key).

In principle, it is possible to pay directly from an integrated wallet with bitcoins. However, it is not recommended. Because crypto exchanges and the associated customer accounts are now a popular target for hacker attacks. In the worst case, there is a risk that the entire digital asset will be lost. For this reason, it is much better to create a separate and personal wallet. It is important to distinguish between two different wallets:

• Soft wallets include desktop programs and smartphone apps. So it is software. Since soft wallets are always connected to the Internet, hackers can also strike here. Theoretically, it is possible for cybercriminals to gain access to your own PC or mobile phone and thus steal the private keys. Without a private key, you can no longer access your own bitcoins.
• Hard wallets are physical stores for cryptocurrencies that are not connected to the internet. This automatically makes them untouchable for hacker attacks. Hard wallets are usually USB sticks and external data carriers.

Step 3: Pay!

As soon as Bitcoins have been bought and a wallet has been created, payment can be made. Basically, all you need is the wallet address of the merchant or person who is supposed to receive the bitcoins. Alternatively, the transaction also works via QR codes, which have to be scanned using the cell phone camera.
Although the acceptance of Bitcoin has increased in recent years, the cryptocurrency is not accepted across the board on the Internet. Several companies and platforms have tried again and again to integrate Bitcoin into the respective payment infrastructure. In some cases, however, the result was so sobering that the service was discontinued. Well-known examples include Microsoft and the streaming website Twitch.
Nevertheless, Bitcoin continues to be accepted in many areas. Away from the online gambling industry, it has been possible to pay with bitcoins via Lieferando for several years.

What are the advantages of bitcoin?

The increasing relevance of bitcoin is due to the unique benefits that cryptocurrency brings. Among other things, it offers the most open payment system that is completely decentralized and does not require a higher authority such as a bank. In addition, just like all other cryptocurrencies, Bitcoin offers maximum anonymity. Equally valuable is the lack of inflation. Since the value of Bitcoin is regulated by the market, conventional economic processes do not affect the price.

Source: Plato Data Intelligence: PlatoData.io