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Whamoo Casino Review & Free Bonus
Sign up with Whamoo Casino and test slots in freeplay - No Deposit Required! Additionally, take advantage of 300 Free Spins and up to 600 EUUSD Welcome Bonus. Exclusive promo codes apply. Click on the link below and start playing for free!
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About Whamoo Casino [Full Review]

Whamoo is a brand new, fun-loving online casino that has recently opened its premises for gamblers from many countries around the world. It does however promise to be more than just an online casino, as Whamoo describes itself as a lifestyle and feeling.
The rush you feel when the reels spin. The sound you make when that spin turns into a huge win. That’s Whamoo. Yet Whamoo is so much more than that. This online casino promises all you would expect from a reputable online casino – but then improved further. A massive game library? Check. Live casino? Check. Full mobile compatibility? Check. An entire VIP bonus programme for loyal customers? Check. Whamoo is a casino which comes with the entire package which players have come to expect of a casino provider.
On paper Whamoo sounds like a great online casino. But being a newcomer on the scene, there are of course always some open questions. How reliable is Whamoo? What can you expect from this brand new casino when it comes to the available games? How cooperative is their online help desk? What kind of welcome bonuses are there for new players who wish to open an online account?
In our extensive Whamoo review, we will try to answer all of the above questions and guide you through this brand new casino. So do read on and let’s explore this exciting new addition to the world of online gambling!
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A fully licenced online casino

Whamoo is a fully licenced online casino and a safe place for gamblers to put down their wagers. The website of whamoo.com is operated by DialMedia Ltd, a company registered by the Malta Business Registry with number C86642, on the registered address of Depiro Point, Block A2, Triq Mons G. Depiro, Sliema, Malta.
As gambling operator, DialMedia Ltd. fully licensed and regulated by the Malta Gaming Authority (MGA) under licence number MGA/B2C/542/2018 issued on 10/04/2019.
What does this say about the reliability of Whamoo?
The MGA licence is one of the better ones you can find in the online casino world as Malta is the major European nation when it comes to online gambling. It is home not only to most of the world’s top online casinos, but also to many software providers and other businesses providing auxiliary services in the gambling industry.
A Malta Gaming Authority licence is not handed out with ease, as a company needs to fulfil many criteria before being granted one. The national gambling authorities of this Mediterranean island and EU member state check for example if all games which are made available are indeed fair and honest. They also check whether a company has enough cash reserves to pay out lucky winners of casino games and hold regular audits to ensure that there are no irregularities.
If an online casino has a MGA licence, it means that all the important criteria when it comes to safety, honesty and reliability are fulfilled and that it is a safe place to gamble. For us, the online casino licence is always a first thing we check before we even would consider playing somewhere. With this crucial criteria being fulfilled, we can thus move forward in our Whamoo review and look at all the other things this casino has to offer. And to be honest, the whole Whamoo package looks quite promising! Three of the main selling points of the Whamoo online casino are:

• Compile your own welcome bonus package and decide between free spins or a deposit bonus – or a combination of both.
• Hundreds of games from top casino software developers, including an exciting live casino platform.
• Recurring reload bonuses every Monday, Wednesday and Friday.

Whamoo clearly sounds like a promising casino when looking at the selling points, but do these points hold up when we test out the casino in real? Let’s continue our review of Whamoo with one of the most important aspects of every online casino: its game library. Which casino games can we find back in the Whamoo game collection? How honest and fair are these games? These are all legit questions which must be looked into before you can decide whether or not an online casino is suitable or not.
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Games from top software developers

When checking the list of Whamoo’s software providers you can only feel relieved as this brand new online casino only has games from the world’s top casino games developers. Especially for a newly opened online casino it is important to show to the public that you are talking serious – and you can only do that by adding the most popular games from the top software providers to your game library.
It’s not only about fun. Sure, these top software developers are known for making some of the most fantastic video slots, stellar table games. They have the most exhilarating and professional live casino tables to which you can connect in just a few clicks. But it’s more than just playing fun, graphics and game design.
By only having games from the top software companies, you are giving your players a clear message that you are only satisfied with the best quality games. Perhaps the most important aspect is game reliability, honesty and fairness. All games from the top software companies are fully tested and accredited by regulatory bodies. These gaming authorities check whether games indeed turn out completely random results and give gamblers a honest shot at winning. This is perhaps even more important than just a fantastically designed game, as in the end what matters most is reliability and honesty inside a casino.

RNG

The games which can be played at Whamoo Casino all have a piece of code called a Random Number Generator (RNG). With a random number generator, the outcome of every game is completely random and independent from previous results. It means that every card being dealt on the table, all dice which are thrown during a game, and every ball spinning around in the roulette wheel is never predetermined. Let’s put it this way: if you throw a single dice with the numbers 1 to 6 on it, you have indeed an exact 1 out of 6 chance that it will land on your predicted number.
A random number generator is absolutely crucial when it comes to delivering fair game results and giving gamblers a honest chance at winning. By having games from the top software providers, Whamoo makes sure that you can trust the fairness of every casino game you play. The good thing is that not only are the game results subject to occasional audits by regulatory authorities, but that these software providers also pro-actively test their own games to ensure they fulfil the highest industry standards. They hire independent testing agencies such as eCOGRA to check their games, both in virtual simulations and real-time results.
Let’s take a look at the software providers whose games have already been added to the Whamoo game library. As these are some of the best known software developers in the world, chances are that you have heard about some of these names before!
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NETENT GAMES

Also known by its full name of Net Entertainment, NetEnt is one of the largest casino game developers in the world. NetEnt is a Swedish company which was founded in 1996, which makes it one of the oldest companies in the relatively young world of online casino gaming. It is so big, that the company is even listed on the local NASDAQ stock exchange in Stockholm, Sweden!
NetEnt is best known for its vast video slot portfolio, of which many games are also playable at Whamoo. Having NetEnt games in your casino game library is almost a must for every online casino, as besides Whamoo some 300 or so more online casinos have NetEnt games available, which tells you something about the popularity of this company. Just like Whamoo itself, NetEnt has a full gambling licence in the EU member state of Malta, which means that all games are subject to regulatory oversight and can be trusted for their fairness. NetEnt also works closely together with independent testing labs to ensure that their games meet the highest standards.
Some popular NetEnt games which you can play at Whamoo are Jack and the Beanstalk, BerryBurst, Twin Spin, The Vikings, Wings of Riches, Aloha!, Fruit Shop, Jacks or Better, Gonzo’s Quest, Dazzle Me, Wild Bazaar and of course the eternal favourite of Starburst.

PRAGMATIC PLAY GAMES

Pragmatic Play is another major company in the online gaming world. The casino games of Pragmatic Play are always popular with the players, so it is no surprise that Whamoo has chosen to add quite a few Pragmatic Play games to its online collection. Pragmatic Play focuses mostly on online video slots, although they also make some exciting live casino games which are hosted in their own studios.
Being only founded in 2015, Pragmatic Play is a relative newcomer within the game developing industry. Yet in those few years time, the company already managed to reach to top heights with Pragmatic Play being considered to rank among the top game providers. Quality and safety are of immense importance for Pragmatic Play. Therefore, all games are documented and tested by independent auditors and testing labs such as QUINEL, BMM and Gaming Labs.
Popular Pragmatic Play games which can be played at Whamoo are John Hunter and the Aztec Treasure, Great Rhino Megaways, Leprechaun Song, Lucky Dragons, Mustang Gold, The Champions, Vegas Nights, Aztec Gems, Buffalo King, Starz Megaways, Triple Jokers, Magic Crystals, Sugar Rush, Beowulf and many more exciting video slots.
Of course, many baccarat, blackjack and roulette variants are available in Whamoo’s Live Casino which is powered by Pragmatic Play software. You are connected by high resolution video feed to professional dealers and croupiers in one of the Pragmatic Play casino studios where you can experience the thrills of a real life casino behind your computer or mobile phone. It’s almost like you are standing in Vegas!

STAKELOGIC GAMES

Stakelogic is another popular software developer which has added its games to the Whamoo game library. As one of the best-known developers in the software industry, it is always a good sign that Stakelogic games are available to play given that this company has made some exciting video slots.
Using HTML5, Stakelogic games are of course fully mobile compatible, which means you can play them on your smartphone as well. The company has also made some exciting new 3D slots which are not only gorgeous to look at but also wild fun to play. As an off-shoot company from gaming giants Novomatic, Stakelogic certainly is a reputable software developer which can be trusted when it comes to fairness and reliability.
Popular Stakelogic games are Epic Slam, Wild Stallion, Magic Wheel, Super Wild Arcade, Fruit Spinner, Lucky Gems Deluxe, Hot Fruits, Grand Slam Deluxe, Runner Runner, Turbo 4 Player Jackpot, Dragons and Magic, Big 5 Jungle Jackpot, Mariachi and The Big Cash Game.
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High limit gaming options

Whamoo is an online casino which is not only suitable for gamblers on a tight budget, but also for the true high rollers. You can place bets as low as a few cents, or as high as several thousands of euros or dollars at this online casino. Depending on your game of choice, whether its a jackpot video slot or classic table game, there are countless of options to bet big for maximum excitement and chances of winning top prizes. Further down in this Whamoo review, we will discuss some of the high limit games which are available.
Highrollers should also note that Whamoo comes with its own VIP programme in which you can quickly work yourself to the top category if you bet big. You can get instant access to your own dedicated casino manager and will get invites to high stakes tournaments. There are special weekly cashback bonuses as well for the true high roller gamblers at Whamoo. We will discuss the VIP program more in depth a bit further down this Whamoo review.
For now, let’s take a look at all the high roller games which are available at Whamoo Online Casino!

Endless rows of jackpot video slots

If you are a real lover of video slots you will be glad to hear that Whamoo has several hundreds of online video slots available. Although some of these slots are more suitable for beginning players or those on a tight budget, there are plenty of slots available where you can bet up to 100 euro/dollar per spin. This makes for some exhilarating and thrilling slot game action which will please any high stakes gambler out there!
Of course, Whamoo also has its share of jackpot slots where you have a shot at winning the progressive jackpot which can run well above a million euro or dollar! These premium slots, such as those using the famous Megaways system, offer countless of opportunities to place maximum bets at your video slot of choice.
Check the Whamoo game library whether or not your favourite slot is available as well, or try one of the many exciting new game additions! It is easy to browse through the Whamoo website. You can sort slots by software provider, or use the search function to check for your beloved title.

Join for some high stakes blackjack action

Blackjack has always been one of the most popular games among high rollers and the reasons why are quite clear. You can often bet high amounts of money on a single play and you can as a player slightly influence the outcome of a game as you need to decide whether you want to stand or hit another card.
At Whamoo, there is plenty of high stakes blackjack action. There are both normal blackjack games such as American Blackjack and multihand Blackjack, as well as blackjack tables in the live casino. In the live casino, which is powered by Pragmatic Play software, you can play several blackjack variants. Bets of up to several hundreds of euros or dollars, or even higher for the real VIPs, are possible.
Beat the hand of the dealer and hit that score of 21. Maybe it will be your lucky day playing blackjack at Whamoo Online Casino!

Grab a seat at the roulette table

There is plenty of roulette action at Whamoo as well. You can choose between virtual roulette versions, or opt for a seat at a roulette table in the live casino, where you are connected to a real-time croupier by video feed. Especially in the live casino high bets of up to a thousand dollar or more are possible, making roulette a big favourite among the real high stake gamblers.
Of course, Whamoo Casino has all of the the standard roulette versions of American Roulette, French Roulette and European Roulette. Most of these games are developed by software giants NetEnt.
In the live casino, there is also Roulette Macao Live, where you will be connected to a gaming environment which makes you feel like you are playing in the famous casinos of this Chinese gambling mecca. Live Speed Roulette, Live Roulette Auto and Roulette Azure are popular Pragmatic Play live casino versions of roulette which are available to Whamoo players.
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Whamoo's unique bonus package

One area in which Whamoo stands out as online casino is its great bonus package. Of course, there is a great welcome bonus for newly registered users. But the fun doesn’t stop there! At Whamoo casino, it is bonus day almost every single day of the week. On Mondays, Wednesdays and Fridays the casino has recurring bonus offers if you reload you bankroll on one of those days. This makes Whamoo not only an attractive casino at the moment you sign up, but also at all those moments when you come back to play again.
300 free spins or a €200 deposit bonus

The Whamoo welcome bonus

We start of discussing the Whamoo welcome bonus which is called the “Welcombo” bonus by the casino. On a picture the Welcombo might not look too appealing as its packed in a carton takeaway box you might get at a certain fast food restaurant, but trust us on this: its contents are truly fantastic.
The Welcombo box contains a combination of goodies you get with your very first deposit at Whamoo. And what is best of all? You can decide what combo you want to receive! If you sign up at Whamoo for a free online casino account, you can determine your own bonus by adjusting the slide until you have found a combination which matches your idea of a perfect bonus.
This is a great option as it allows people to choose the bonus which best suits them. You can choose between free spins and a deposit bonus – or a combination of both. If you are an avid video slot gamer and do not care much about table games, you may want to slide all the way to the maximum free spins bonus. In that case, you will receive 300 free spins, but your deposit bonus will be 0%. The free spins in the Welcombo package are valid on the popular Amatic Industries slot Book of Fortune.
On the other hand, if you only care about table games and are not really interested in free spins and playing video slots, you want to adjust the slide to the maximum deposit bonus. This is a 100% deposit bonus of up to 200 euro. This means that if you deposit 200 euro of your own money to your newly created online casino account, Whamoo will top this up by another 200 euro from the house! If you select the full 100% deposit bonus, you will however not receive any free spins at all.
Of course, you can also opt for a mix between free spins and a deposit bonus. If you leave the slider in the middle, you will get 150 free spins and a 50% deposit bonus, for example. You can tweak this in any direction you want, for example to a 70% deposit bonus and 90 free spins. The higher your deposit bonus, the less free spins you receive. Want more free spins? Then your deposit bonus will decrease.

Welcombo bonus terms and conditions

Only one bonus is allowed per household and/or per player account. Do note that Whamoo’s bonuses remain valid until seven days after the required deposit has been made. Once this period ends, the bonus is automatically flagged as expired by the system and can no longer be released. The expired bonus funds are then automatically removed from the player’s account.
Of course, there is a wagering requirement which must be met in order to withdraw your bonus money and any winnings which may derive from it. Real money balance is used prior to bonus balance. The bonus balance will only be used when there is no real money available in your account. Only real money funds and released bonus funds can contribute towards the wagering requirement of the bonus. The wagering requirement for the Welcombo deposit bonus and free spins is thirty times (30x) the deposit + bonus.
Do note that players that deposit money using Paysafecard, Skrill or Neteller are not eligible for the Welcombo. To assure fair gaming and prevent fraud, Whamoo has placed a maximum cap on bonus money wagers, which are limited to a maximum per round/bet of €5 or its equivalent in other currencies. You should also be aware that certain games cannot be played using bonus money. There is a full overview of these games on the Whamoo bonus page.
Bets placed in certain games might not contribute fully to the wagering requirements.

• Bets placed on video slots count for 100%
• Bets placed on scratch cards count for 100%
• Bets placed on blackjack count for 10%
• Bets placed on video poker count for 10%
• Bets placed on poker count for 10%
• Bets placed on roulette, baccarat, sic-bo and craps do not count
• Bets placed on live casino games do not count

Recurring bonuses at Whamoo

The bonus fun does not stop at the welcome bonus when you play at Whamoo! You can count on a constant stream of promotional campaigns and bonus offers. The casino has recurring promo offers every Monday, Wednesday and Friday. If you deposit some extra money to your online casino bankroll on one of those days, you are eligible for a bonus. It therefore pays off to wait for these days before you decide to reload your online funds.
On Monday it is Pick ‘n’ Play day to start off the week with some good vibes. On this day, the casino basically tops up your deposited money You can:

• Turn your €20 into €25 with the code 100024;
• turn your €50 into €65 with the code 100025, and/or
• turn your €100 into €135 with the code 100026.

It is even possible to combine these bonuses if you want to deposit a larger sum! Alternatively, you can use the bonus codes of WHPICK5, WHPICK15 and WHPICK35 by putting these into the promo code field on the cashier page every Monday.

Whoa Wednesday

Wednesday is for many a difficult day in the week, it being right in the middle of another long week of work. To spice up things, Whamoo has come with an unusual bonus which it calls “Whoa Wednesday”.
Every Wednesday you get to uncover your secret gift – for free, no strings attached. The casino will add this gift to your next deposit. This can be a bonus, a set of free spins, or even both. You’ll get all the details once you’ve pulled off the cover and logged into your account. You will receive the bonus details and promotional code, which you can use in the promo field at the payment page to receive your hard-earned Wednesday bonus.

Freeday bonus

Friday is the favourite day of the week for many people – and the reason why is quite obvious. It marks the end of another working week and the start of some well-deserved weekend R&R! For many people this involves paying a visit to a land-based or online casino to get their kicks at their favourite game, whether it is a card game, roulette or video slot.
Whamoo knows that many people cannot wait for the days off work to start and therefore has come up with a special Friday bonus to welcome in the weekend! This bonus day is called ‘Freeday’ by Whamoo. The casino basically hands you a bunch of free spins if you are a regular customer. For every weekday from the previous week (Friday through Thursday) that you’ve deposited 30 euro or more, you get 10 free spins. For every weekend day you even get 20 Free Spins! That means up to 90 Free Spins are yours to play with. That’s a great start to a weekend full of partying and fun!

Wagering requirements

Do note that wagering requirements do apply to all daily promo offers. These are more or less the same as we outlined above in the description of the welcome package, but do take a look at the bonus terms and conditions page on the Whamoo website to know precisely what you can expect! As always, it is important to read the small print in order not to face any surprises later on.
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A fully mobile compatible casino

As a brand new online casino, Whamoo knows that already a majority of gamblers nowadays play on their mobile phones rather than on computers. Because of this, the Whamoo casino is fully compatible with mobile devices and tablets. If you load the Whamoo website on your smartphone, it looks just as good as on your laptop of computer. It’s equally accessible and orderly too! The mobile website is a breeze to browse through and you can easily access all the important pages such as the game library and payment page.
The same counts for the actual games themselves. Whamoo only works with software providers which are known to offer full mobile gaming support. These games are made in code such as HTML5, which means that the games can simply be played in your (mobile) internet browser. There is no download or special app required to play these games. Whether you are playing on your computer, tablet or smartphone, you simply surf to Whamoo.com and select your favourite game from the library. This game will then open in your internet browser – and you can play instantly. It does not matter whether your phone runs on Android or is an iPhone, nor does it matter whether you have Mozilla Firefox, Google Chrome, Internet Explorer, Opera, Safari or any other internet browser. Whamoo will function just fine!
This is absolutely great as you can now play at Whamoo wherever you are, whenever you want. Want to put down some wagers on the roulette table while you are sitting in public transport on your way to work? That’s easily doable! Just take out your smartphone on the train or bus, and surf to Whamoo.com to play at your favourite roulette table. Are you sitting on your couch at home and want to play a few hands of blackjack before going to sleep? Just take out your laptop, tablet or phone and within seconds you can have some of the most exhilarating blackjack fun on your screen.

The Whamoo Live Casino

Whamoo’s live casino is powered by Pragmatic Play and NetEnt software – which are two of the biggest, most reputable software providers in the world. This is great news for the players, as you can access high quality tables in just a few clicks.
In the live casino, you are connected with a live video feed to a real-time casino table in one of the casino studios of these software providers. You can play games like baccarat, blackjack and roulette like you are standing in a real land-based casino in Vegas or Monaco! Thanks to the high definition video stream, you have a great overview of all the action which unfolds on and around the table.
All table games are led by experienced, professional croupiers and dealers who are not only well-trained, but entertaining as well. By all means, feel free to open your microphone or the chat window to have a talk with them, or even with other players from around the world. This is what makes the live casino such a great invention. Even though you might be sitting at home in front of your laptop or computer, it does almost feel like you are standing in a casino for real!
Especially for high rollers the live casino is a worthwhile addition as table limits are often much higher than in regular games. Of course, if you are on a tight budget there will definitely be live casino tables where low minimum bets are allowed too – no worries there. But it is the experienced, high stakes gambler who probably feels most at home in the live casino.
There are multiple baccarat, blackjack and roulette variants which you can play. For roulette, there is American Roulette, European Roulette, French Roulette, Speed Roulette, Live Roulette Auto and Roulette Macao Live. If you prefer the casino classic of blackjack, you will find plenty of different tables all with slightly different betting limits. Baccarat is perhaps the game with the highest betting limit. Besides the regular version, there are also Speed Baccarat tables. A fourth casino game which can be played live at the Whamoo Live Casino is Sic Bo. Just browse through the list of live casino games, or use the search function to find your favourite table!
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CRYPTOCURRENCY BITCOIN
Bitcoin Table of contents expand: 1. What is Bitcoin? 2. Understanding Bitcoin 3. How Bitcoin Works 4. What's a Bitcoin Worth? 5. How Bitcoin Began 6. Who Invented Bitcoin? 7. Before Satoshi 8. Why Is Satoshi Anonymous? 9. The Suspects 10. Can Satoshi's Identity Be Proven? 11. Receiving Bitcoins As Payment 12. Working For Bitcoins 13. Bitcoin From Interest Payments 14. Bitcoins From Gambling 15. Investing in Bitcoins 16. Risks of Bitcoin Investing 17. Bitcoin Regulatory Risk 18. Security Risk of Bitcoins 19. Insurance Risk 20. Risk of Bitcoin Fraud 21. Market Risk 22. Bitcoin's Tax Risk What is Bitcoin?
Bitcoin is a digital currency created in January 2009. It follows the ideas set out in a white paper by the mysterious Satoshi Nakamoto, whose true identity is yet to be verified. Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms and is operated by a decentralized authority, unlike government-issued currencies.
There are no physical bitcoins, only balances kept on a public ledger in the cloud, that – along with all Bitcoin transactions – is verified by a massive amount of computing power. Bitcoins are not issued or backed by any banks or governments, nor are individual bitcoins valuable as a commodity. Despite it not being legal tender, Bitcoin charts high on popularity, and has triggered the launch of other virtual currencies collectively referred to as Altcoins.
Understanding Bitcoin Bitcoin is a type of cryptocurrency: Balances are kept using public and private "keys," which are long strings of numbers and letters linked through the mathematical encryption algorithm that was used to create them. The public key (comparable to a bank account number) serves as the address which is published to the world and to which others may send bitcoins. The private key (comparable to an ATM PIN) is meant to be a guarded secret and only used to authorize Bitcoin transmissions. Style notes: According to the official Bitcoin Foundation, the word "Bitcoin" is capitalized in the context of referring to the entity or concept, whereas "bitcoin" is written in the lower case when referring to a quantity of the currency (e.g. "I traded 20 bitcoin") or the units themselves. The plural form can be either "bitcoin" or "bitcoins."
How Bitcoin Works Bitcoin is one of the first digital currencies to use peer-to-peer technology to facilitate instant payments. The independent individuals and companies who own the governing computing power and participate in the Bitcoin network, also known as "miners," are motivated by rewards (the release of new bitcoin) and transaction fees paid in bitcoin. These miners can be thought of as the decentralized authority enforcing the credibility of the Bitcoin network. New bitcoin is being released to the miners at a fixed, but periodically declining rate, such that the total supply of bitcoins approaches 21 million. One bitcoin is divisible to eight decimal places (100 millionths of one bitcoin), and this smallest unit is referred to as a Satoshi. If necessary, and if the participating miners accept the change, Bitcoin could eventually be made divisible to even more decimal places. Bitcoin mining is the process through which bitcoins are released to come into circulation. Basically, it involves solving a computationally difficult puzzle to discover a new block, which is added to the blockchain and receiving a reward in the form of a few bitcoins. The block reward was 50 new bitcoins in 2009; it decreases every four years. As more and more bitcoins are created, the difficulty of the mining process – that is, the amount of computing power involved – increases. The mining difficulty began at 1.0 with Bitcoin's debut back in 2009; at the end of the year, it was only 1.18. As of February 2019, the mining difficulty is over 6.06 billion. Once, an ordinary desktop computer sufficed for the mining process; now, to combat the difficulty level, miners must use faster hardware like Application-Specific Integrated Circuits (ASIC), more advanced processing units like Graphic Processing Units (GPUs), etc.
What's a Bitcoin Worth? In 2017 alone, the price of Bitcoin rose from a little under $1,000 at the beginning of the year to close to $19,000, ending the year more than 1,400% higher. Bitcoin's price is also quite dependent on the size of its mining network since the larger the network is, the more difficult – and thus more costly – it is to produce new bitcoins. As a result, the price of bitcoin has to increase as its cost of production also rises. The Bitcoin mining network's aggregate power has more than tripled over the past twelve months.
How Bitcoin Began
Aug. 18, 2008: The domain name bitcoin.org is registered. Today, at least, this domain is "WhoisGuard Protected," meaning the identity of the person who registered it is not public information.
Oct. 31, 2008: Someone using the name Satoshi Nakamoto makes an announcement on The Cryptography Mailing list at metzdowd.com: "I've been working on a new electronic cash system that's fully peer-to-peer, with no trusted third party. The paper is available at http://www.bitcoin.org/bitcoin.pdf." This link leads to the now-famous white paper published on bitcoin.org entitled "Bitcoin: A Peer-to-Peer Electronic Cash System." This paper would become the Magna Carta for how Bitcoin operates today.
Jan. 3, 2009: The first Bitcoin block is mined, Block 0. This is also known as the "genesis block" and contains the text: "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks," perhaps as proof that the block was mined on or after that date, and perhaps also as relevant political commentary.
Jan. 8, 2009: The first version of the Bitcoin software is announced on The Cryptography Mailing list.
Jan. 9, 2009: Block 1 is mined, and Bitcoin mining commences in earnest.
Who Invented Bitcoin?
No one knows. Not conclusively, at any rate. Satoshi Nakamoto is the name associated with the person or group of people who released the original Bitcoin white paper in 2008 and worked on the original Bitcoin software that was released in 2009. The Bitcoin protocol requires users to enter a birthday upon signup, and we know that an individual named Satoshi Nakamoto registered and put down April 5 as a birth date. And that's about it.
Before Satoshi
Though it is tempting to believe the media's spin that Satoshi Nakamoto is a solitary, quixotic genius who created Bitcoin out of thin air, such innovations do not happen in a vacuum. All major scientific discoveries, no matter how original-seeming, were built on previously existing research. There are precursors to Bitcoin: Adam Back’s Hashcash, invented in 1997, and subsequently Wei Dai’s b-money, Nick Szabo’s bit gold and Hal Finney’s Reusable Proof of Work. The Bitcoin white paper itself cites Hashcash and b-money, as well as various other works spanning several research fields.
Why Is Satoshi Anonymous?
There are two primary motivations for keeping Bitcoin's inventor keeping his or her or their identity secret. One is privacy. As Bitcoin has gained in popularity – becoming something of a worldwide phenomenon – Satoshi Nakamoto would likely garner a lot of attention from the media and from governments.
The other reason is safety. Looking at 2009 alone, 32,489 blocks were mined; at the then-reward rate of 50 BTC per block, the total payout in 2009 was 1,624,500 BTC, which at today’s prices is over $900 million. One may conclude that only Satoshi and perhaps a few other people were mining through 2009 and that they possess a majority of that $900 million worth of BTC. Someone in possession of that much BTC could become a target of criminals, especially since bitcoins are less like stocks and more like cash, where the private keys needed to authorize spending could be printed out and literally kept under a mattress. While it's likely the inventor of Bitcoin would take precautions to make any extortion-induced transfers traceable, remaining anonymous is a good way for Satoshi to limit exposure.
The Suspects
Numerous people have been suggested as possible Satoshi Nakamoto by major media outlets. Oct. 10, 2011, The New Yorker published an article speculating that Nakamoto might be Irish cryptography student Michael Clear or economic sociologist Vili Lehdonvirta. A day later, Fast Company suggested that Nakamoto could be a group of three people – Neal King, Vladimir Oksman and Charles Bry – who together appear on a patent related to secure communications that were filed two months before bitcoin.org was registered. A Vice article published in May 2013 added more suspects to the list, including Gavin Andresen, the Bitcoin project’s lead developer; Jed McCaleb, co-founder of now-defunct Bitcoin exchange Mt. Gox; and famed Japanese mathematician Shinichi Mochizuki.
In December 2013, Techcrunch published an interview with researcher Skye Grey who claimed textual analysis of published writings shows a link between Satoshi and bit-gold creator Nick Szabo. And perhaps most famously, in March 2014, Newsweek ran a cover article claiming that Satoshi is actually an individual named Satoshi Nakamoto – a 64-year-old Japanese-American engineer living in California. The list of suspects is long, and all the individuals deny being Satoshi.
Can Satoshi's Identity Be Proven?
It would seem even early collaborators on the project don’t have verifiable proof of Satoshi’s identity. To reveal conclusively who Satoshi Nakamoto is, a definitive link would need to be made between his/her activity with Bitcoin and his/her identity. That could come in the form of linking the party behind the domain registration of bitcoin.org, email and forum accounts used by Satoshi Nakamoto, or ownership of some portion of the earliest mined bitcoins. Even though the bitcoins Satoshi likely possesses are traceable on the blockchain, it seems he/she has yet to cash them out in a way that reveals his/her identity. If Satoshi were to move his/her bitcoins to an exchange today, this might attract attention, but it seems unlikely that a well-funded and successful exchange would betray a customer's privacy.
Receiving Bitcoins As Payment
Bitcoins can be accepted as a means of payment for products sold or services provided. If you have a brick and mortar store, just display a sign saying “Bitcoin Accepted Here” and many of your customers may well take you up on it; the transactions can be handled with the requisite hardware terminal or wallet address through QR codes and touch screen apps. An online business can easily accept bitcoins by just adding this payment option to the others it offers, like credit cards, PayPal, etc. Online payments will require a Bitcoin merchant tool (an external processor like Coinbase or BitPay).
Working For Bitcoins
Those who are self-employed can get paid for a job in bitcoins. There are several websites/job boards which are dedicated to the digital currency:
Work For Bitcoin brings together work seekers and prospective employers through its websiteCoinality features jobs – freelance, part-time and full-time – that offer payment in bitcoins, as well as Dogecoin and LitecoinJobs4Bitcoins, part of reddit.comBitGigs
Bitcoin From Interest Payments
Another interesting way (literally) to earn bitcoins is by lending them out and being repaid in the currency. Lending can take three forms – direct lending to someone you know; through a website which facilitates peer-to-peer transactions, pairing borrowers and lenders; or depositing bitcoins in a virtual bank that offers a certain interest rate for Bitcoin accounts. Some such sites are Bitbond, BitLendingClub, and BTCjam. Obviously, you should do due diligence on any third-party site.
Bitcoins From Gambling
It’s possible to play at casinos that cater to Bitcoin aficionados, with options like online lotteries, jackpots, spread betting, and other games. Of course, the pros and cons and risks that apply to any sort of gambling and betting endeavors are in force here too.
Investing in Bitcoins
There are many Bitcoin supporters who believe that digital currency is the future. Those who endorse it are of the view that it facilitates a much faster, no-fee payment system for transactions across the globe. Although it is not itself any backed by any government or central bank, bitcoin can be exchanged for traditional currencies; in fact, its exchange rate against the dollar attracts potential investors and traders interested in currency plays. Indeed, one of the primary reasons for the growth of digital currencies like Bitcoin is that they can act as an alternative to national fiat money and traditional commodities like gold.
In March 2014, the IRS stated that all virtual currencies, including bitcoins, would be taxed as property rather than currency. Gains or losses from bitcoins held as capital will be realized as capital gains or losses, while bitcoins held as inventory will incur ordinary gains or losses.
Like any other asset, the principle of buying low and selling high applies to bitcoins. The most popular way of amassing the currency is through buying on a Bitcoin exchange, but there are many other ways to earn and own bitcoins. Here are a few options which Bitcoin enthusiasts can explore.
Risks of Bitcoin Investing
Though Bitcoin was not designed as a normal equity investment (no shares have been issued), some speculative investors were drawn to the digital money after it appreciated rapidly in May 2011 and again in November 2013. Thus, many people purchase bitcoin for its investment value rather than as a medium of exchange.
However, their lack of guaranteed value and digital nature means the purchase and use of bitcoins carries several inherent risks. Many investor alerts have been issued by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), the Consumer Financial Protection Bureau (CFPB), and other agencies.
The concept of a virtual currency is still novel and, compared to traditional investments, Bitcoin doesn't have much of a long-term track record or history of credibility to back it. With their increasing use, bitcoins are becoming less experimental every day, of course; still, after eight years, they (like all digital currencies) remain in a development phase, still evolving. "It is pretty much the highest-risk, highest-return investment that you can possibly make,” says Barry Silbert, CEO of Digital Currency Group, which builds and invests in Bitcoin and blockchain companies.
Bitcoin Regulatory Risk
Investing money into Bitcoin in any of its many guises is not for the risk-averse. Bitcoins are a rival to government currency and may be used for black market transactions, money laundering, illegal activities or tax evasion. As a result, governments may seek to regulate, restrict or ban the use and sale of bitcoins, and some already have. Others are coming up with various rules. For example, in 2015, the New York State Department of Financial Services finalized regulations that would require companies dealing with the buy, sell, transfer or storage of bitcoins to record the identity of customers, have a compliance officer and maintain capital reserves. The transactions worth $10,000 or more will have to be recorded and reported.
Although more agencies will follow suit, issuing rules and guidelines, the lack of uniform regulations about bitcoins (and other virtual currency) raises questions over their longevity, liquidity, and universality.
Security Risk of Bitcoins
Bitcoin exchanges are entirely digital and, as with any virtual system, are at risk from hackers, malware and operational glitches. If a thief gains access to a Bitcoin owner's computer hard drive and steals his private encryption key, he could transfer the stolen Bitcoins to another account. (Users can prevent this only if bitcoins are stored on a computer which is not connected to the internet, or else by choosing to use a paper wallet – printing out the Bitcoin private keys and addresses, and not keeping them on a computer at all.) Hackers can also target Bitcoin exchanges, gaining access to thousands of accounts and digital wallets where bitcoins are stored. One especially notorious hacking incident took place in 2014, when Mt. Gox, a Bitcoin exchange in Japan, was forced to close down after millions of dollars worth of bitcoins were stolen.
This is particularly problematic once you remember that all Bitcoin transactions are permanent and irreversible. It's like dealing with cash: Any transaction carried out with bitcoins can only be reversed if the person who has received them refunds them. There is no third party or a payment processor, as in the case of a debit or credit card – hence, no source of protection or appeal if there is a problem.
Insurance Risk
Some investments are insured through the Securities Investor Protection Corporation. Normal bank accounts are insured through the Federal Deposit Insurance Corporation (FDIC) up to a certain amount depending on the jurisdiction. Bitcoin exchanges and Bitcoin accounts are not insured by any type of federal or government program.
Risk of Bitcoin Fraud
While Bitcoin uses private key encryption to verify owners and register transactions, fraudsters and scammers may attempt to sell false bitcoins. For instance, in July 2013, the SEC brought legal action against an operator of a Bitcoin-related Ponzi scheme.
Market Risk
Like with any investment, Bitcoin values can fluctuate. Indeed, the value of the currency has seen wild swings in price over its short existence. Subject to high volume buying and selling on exchanges, it has a high sensitivity to “news." According to the CFPB, the price of bitcoins fell by 61% in a single day in 2013, while the one-day price drop in 2014 has been as big as 80%.
If fewer people begin to accept Bitcoin as a currency, these digital units may lose value and could become worthless. There is already plenty of competition, and though Bitcoin has a huge lead over the other 100-odd digital currencies that have sprung up, thanks to its brand recognition and venture capital money, a technological break-through in the form of a better virtual coin is always a threat.
Bitcoin's Tax Risk
As bitcoin is ineligible to be included in any tax-advantaged retirement accounts, there are no good, legal options to shield investments from taxation.
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Related Terms
Satoshi
The satoshi is the smallest unit of the bitcoin cryptocurrency. It is named after Satoshi Nakamoto, the creator of the protocol used in block chains and the bitcoin cryptocurrency.
Chartalism Chartalism is a non-mainstream theory of money that emphasizes the impact of government policies and activities on the value of money.
Satoshi Nakamoto The name used by the unknown creator of the protocol used in the bitcoin cryptocurrency. Satoshi Nakamoto is closely-associated with blockchain technology.
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By Satoshi Nakamoto
Read it once, go read other crypto stuff, read it again… keep doing this until the whole document makes sense. It’ll take a while, but you’ll get there. This is the original whitepaper introducing and explaining Bitcoin, and there’s really nothing better out there to understand on the subject.
“What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party