By guest contributor James Canning of the Bitcoin Betting Guide What are Bitcoins? Bitcoin is a digital currency with its own payment processor which allows any 2 people to transact almost free and instantly, anytime, any amount, anywhere online with no 3rd parties such as banks or governments involved. Sending someone money is as quick and easy as sending an email. The amazing technological innovation is to use a decentralized peer 2 peer network to record and verify all transactions on a public ledger based on proof. This has profound implications for all tech-based areas of our lives not just money. For example this is the best way to conduct electronic voting, to record and verify ownership titles for all types of property, to execute a will and to register domain names. Bitcoin Gambling Bitcoin gambling is big business because bitcoins unique attributes and characteristics make it perfect for gambling and because of all the hassles and friction in involved in gambling with government currencies such as ID verification and credit card fraud. The advantages of bitcoin gambling include
- Free and instant deposits and withdraws of any amount 24/7
- The betting operators save so much money in transaction processing and charge backs that they can give higher payouts
- Betting anonymously makes it impossible for a sportsbook to limit you for winning too often or to sell your details and credit card information
- Betting anonymously makes it easier maintain privacy, avoid legal restrictions and avoid tax burdens.
- Users can partake in provably fair gambling
Is it Legal? There are no specific laws relating to gambling with bitcoin. As such we assume that gambling with bitcoins falls in the same legal category as gambling with government currency. If the type of gambling you want to do is legal with AUD then the same type of gambling is still legal with bitcoins. For more information click here. Bitcoin and Race Fixing Bitcoin and race fixing are a match made in heaven. We know no cases of bitcoin being used for race fixing yet, but then we wouldn’t know about it would we? It would be anonymous and no one but the jockey would be involved making it near impossible to detect. To fix a race with AUD several people have to co-operate together. First you need a group of bettors because one individual gambler could not get enough money on without causing suspicion. The betting side of race fixing is normally done with betting syndicates of at least 6 people. Then you need the fixer who will arrange things between the bettors and the jockey, coordinating and negotiating the payment. Lastly you need the Jockey to influence the outcome of the race with less than optimal riding. So at least 8 individuals all of whom are potential points of failure, all of whom could be an informant, could get blackmailed, could commit blackmail or say too much to the wrong person. With bitcoin the jockey could do it all anonymously himself. For more details see ‘Is Bitcoin used for match fixing?’ How to Get Bitcoins The best way to get bitcoins is to provide a good or service (such as your job) and accept bitcoin as payment. The most common way for Australians is to buy them from CoinJar a good and trustworthy exchange. For more information about bitcoin gambling including where to bet, visit the Australian run Bitcoin Betting Guide. Good Luck! James Canning