Help me understand the Concept of Bitcoin Book like Nitrogen

[MaddyMax]

So we know that bitcoin cannot be created and it can only be mined and there will be a limited supply of 21 millions once all mining is done.

So i can see poker sites, betting exchages operating fully on bitcoin. i can see other books like betcris/5dimes that accept bitcoin but converts to fiat currency for betting purpose to deposit into your account.

But i still can't see how other books that use bitcoin as the betting currency in the betting account work. Because when you win a bet you are creating a new bitcoin....if its exchange someone else loses when you win. Hypothetically, if i am to play with 100k bitcoins and turn into 2 million bitcoin over a period of 2 years,i have created nearly 2 million bitcoins?

so are these bitcoin currency books like nitrogen ticking time bomb waiting to happen? Ik now that most bettors lose and this model is working for the books. But if more players win than lose, they are creating more bit coins. Do these books have a stock of bitcoin in reserve to cover the player winnings if everyone wins? but there is only limited supply of bitcoins.

[bigtymer56]

You overcomplicated this.

They're normal casinos....but instead of cash they use bitcoins.

Not sure where you got the "when you win a bet you are creating a new bitcoin" thing from. You don't create a new dollar everytime you win a bet at a normal casino.

When the players win at a Bitcoin casino its coming out of the stash of bitcoin the casino has saved up.

[Optional]

What bigtymer56 said, you are over thinking it.

You just give Nitrogen cash in the form of already mined bitcoin that you own and if you win they pay you from their store of already mined bitcoin.

Exactly like depositing any other currency.

[Waterstpub87]

It is fractional reserve, similar to banking. Not everyone will cashout at once, therefore, they don't need to hold the exact number of bitcoins that are displayed in player account balances.

A casino likely does not have cash on hand for every chip in the banks of all the table games. Only thing that is different with Nitrogen is they are using bitcoin instead of dollars.

The thing to worry about with Nitrogen would be a short squeeze. If the price of bitcoins went up rapidly, and many people wanted to cashout at once, Nitrogen would run out of bitcoins. They would then be forced to buy bitcoins on the market, driving up the price.

[LordVodka]

I'm finally thinking of using them. What's the best way to buy bitcoins these days?

[mrpapageorgio]

I'm finally thinking of using them. What's the best way to buy bitcoins these days?

Depends where you live. U.S. Customers can use Gemini, GDAX, or CEX.IO as the cheapest exchanges, but they take a few days to deposit the money into the exchange unless you want to wire the money. The fastest way is Coinbase (the retail platform of GDAX) by credit card, but you pay a 4% premium on top of the cost of Bitcoin.

[Optional]

I'm finally thinking of using them. What's the best way to buy bitcoins these days?

Become a pro and win some betpoints and buy it with them from SBR.