How to Mine for Bitcoin
The bitcoin method of casino banking offers the opportunity to play your real money casino games via the bitcoin cybercurrency. Playing with bitcoin is a new method of real money gambling which is favoured by many players because there is no connection between your bitcoins and your local Canadian bank account.
It's important to read the Bitcoin Mining Guide before you start gambling to learn how to mine bitcoins, how to find a bitcoin mine in Canada, how to redeem your bitcoins for other currencies and how to translate your bitcoins into your tax obligations.
Bitcoin is a digital currency whose value is determined by a consensus of its users who value it based on market supply and demand. Cybercurrencies, such as bitcoin, are not associated with the currency value of any particular country and they are not controlled by any centralized banking system. For this reason, they are favoured by many casino players who wish to separate their personal Canadian bank account from their gambling activities.
Bitcoins use cryptography to transfer information, provide security and prevent counterfeiting. Bitcoin uses various techniques to ensure that information about the currency will remain private and secure.
In addition to bitcoins there are other cryptocurrencies including Litecoin, Omnicoin, Glove, Dogecoin and NXT. Bitcoins, however, are the most popular.They are not legal in all countries so if you decide to conduct your gambling activities via bitcoin, you won't be able to make purchases of goods and services via vendors originating in these countries (Iceland, China and Taiwan are a few of the countries who restrict bitcoin transactions). It's clear, however, that increasing numbers of establishments, including eBay, Amazon and the Apple App Store accept bitcoins, making the cybercurrency easier to use than ever.
To obtain bitcoins you'll need to decide how you want to obtain your bitcoins:
- Buy bitcoins on an exchange
- Accept bitcoins from another owner (or as payment for goods or services)
- Mine (discover) new bitcoins by verifying a bitcoin transaction.
The Bitcoin Mining Guide can give you guidance on bitcoins mining. Currently, more than 12 million bitcoins are in circulation and there are almost nine million bitcoins are waiting to be discovered.
Bitcoin transactions are gathered into secured digital boxes which are called "block chains." Miners run software to find the key that will open the padlock and release the bitcoins so that they can circulate. The software needed to mine is straightforward to use and free to download and run.
Miners operate the software and search for bitcoins. Once the computer finds a bitcoin the transaction can be verified and the miner receives a reward of 25 newly generated bitcoins. Approximately every 10 minutes a miner discovers a box and earns his 25 bitcoins.
Can you Mine?
To mine, you'll need a bitcoin wallet — an encrypted online bank account — to hold the bitcoins that you find. You'll also need the mining software itself which mines on its own as it searches for the magic combination that will open a padlock to a block of transactions. The faster and more powerful a miner's computer is, the faster the miner will start generating bitcoins.
If you don't want to mine your own bitcoins you can join a bitcoin mine in Canada by locating a collective of bitcoin miners who pool their computer power together to mine. Small-time miners are able to receive percentages of bitcoins as they mine for the group.
Playing with Bitcoins
If you've decided to play your casino games with bitcoins, you'll need to do a little research to see which casinos accept bitcoins. Not all Canadian casinos support bitcoins but the number of bitcoin casinos is growing as the popularity of the currency increases and more and more people use digital currencies for their financial needs.
Check your casino's Banking Page to see which banking institutions the casino supports.
Casinos support a wide variety of ebanking alternatives including credit and debit cards, ewallets, evouchers and ebanks that facilitate transfers of funds to and from your local bank account. Find a casino that has a "Bitcoin" button on the Banking Page and you'll be able to gamble with bitcoins.
Link your bitcoin wallet to your casino account. Once you've done that, all of your casino deposits and withdrawals of earnings will happen via your bitcoin wallet. You can change your method of casino banking at any time by notifying the casino that you wish to use another method for your gambling needs.
For tax purposes, you assume the same tax obligations with bitcoin gambling as you do when you play with any other form of banking or currency. The Canadian tax authority assesses taxes on your bitcoin winnings based on the value of the bitcoins on the day that you earned them. The Canadian Revenue Agency does not, however, accept tax payments in bitcoins.
If your casino accepts bitcoins as a payment method, you'll be able to learn more about how to facilitate your deposits and withdraw your payouts via the casino's Help Line. Contact the help line at any time of the day or night via chat, email or freephone call to ask for assistance with your bitcoin gambling activities.