Bitcoin is considered as a great option for the global financial system. We look at two changes inspired by Bitcoin that solve big problems in the system. Bitcoin is the solution for open, efficient and robust financial systems.
Financial technologists should re-read the Bitcoin protocol, the history and the user communities. Bitcoin has given us many ideas to improve even the functioning financial systems.
Building such systems with Bitcoin is a multi-disciplinary complex task. Research is focused on solving the weaknesses of Bitcoin as a medium of exchange, not its potential.
Most Bitcoin transactions are not for goods or services, not even for Bitcoin itself.
Bitcoin Casino Games
Considering all the advantages that comes with using Bitcoin as a payment solution, it’s no surprise that many online casinos have added Bitcoin to their payment options.
This and the fact that Bitcoin has grown exponentially in the past years.
So many operators have created a domain where customers from all over the world can gamble at bitcoin casino sites and at the same time take advantage of the growth of Bitcoin while playing the most popular casino games like bitcoin slots games.
So Bitcoin enthusiasts should consider these key points before creating an account and start gambling.
First of all players should make sure the online bitcoin slots casino they want to use is licensed and regulated by a reputable authority. Such authorities include the Malta Gaming Authority, the UK Gambling Commission and few others.
So it would be better to check if the casino complies with the previous regulations in the countries where the casino operates, from where the player is physically based.
Another important feature is the online casino’s reliability in managing customer deposits which should be deposited in many ways.
A smaller list of deposit methods in fact could be a showstopper, and slow withdrawal times and fees in most cases.
Evolution of Bitcoin
Bitcoin is a decentralized, user driven digital currency. It was created in 2009 by a pseudonymous developer called Satoshi Nakamoto. Unlike fiat currencies, Bitcoin is not backed by any metal or government.
It was designed as an alternative to fiat, using a distributed ledger called blockchain. The history of Bitcoin is full of interesting events and phenomena that could give us insights to future financial systems or mechanisms.
Of course the long term of Bitcoin is still unknown to us but the design and the technology is very inspiring.
Bitcoin and Traditional Financial Systems
Few technologies have captured the attention of the global financial services industry and the public as much as Bitcoin.
Much of the conversation has been around the holders and their holdings of these new financial assets as investment and speculation tools.
But despite this attention there is a growing body of literature on the disruptive value of the underlying digital technologies, especially for remittances, micropayments, mobile money and even central banking.
Many industry experts compare Bitcoin to the internet era when overhyping led to market bubbles and then serious value destruction through speculation.
While the technology behind Bitcoin is important we believe the improvements in the design and performance of the financial system is equally important for the future. The first step to any understanding must be to ask, “What is Bitcoin anyway?”
Regulatory Challenges and Opportunities
According to Bryan Ross at Bovada Hub, a well known voice in the crypto space, in a digitalized economy, cryptocurrencies like Bitcoin provide new ways of doing financial transactions.
The current Bitcoin ecosystem has many online and physical stores that accept Bitcoins as payment.
Bryan also regularly publishes articles eluding to the fact that one of the reasons Bitcoin got popular is its decentralized nature that allows new participants to join the network and transact openly.
But from a regulatory perspective, non recognition of Bitcoin network entries without being validated by the banking system could create an imbalance in the regulation of two systems that are seen as two sides of the same coin of the modern financial system.
To fix the regulatory issues a reform of the regulations and new technologies must intersect.
New technologies around blockchain mechanisms bring new ideas that help financial institutions to reinvent their business models, to reduce operational costs and risk, to increase return on equity and to meet the digital demands of the generation.
However, integrating decentralized cryptocurrencies into the existing centralized financial system raises challenges. Regulations around anti-money laundering, know your customer rules, and reporting requirements were designed for traditional banks, not peer-to-peer networks.
Updating regulations to apply equally across financial systems is crucial but complex. Policymakers must find a balance between protecting consumers and fostering innovation.
Collaboration between regulators and technology leaders to develop compliant but flexible new systems represents a promising path forward.
Overall, wise regulation paired with technological innovation can promote the fair growth of decentralized currencies.
