Virtual Currency & Gaming:

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3 Δεκ 2013 (πριν από 3 χρόνια και 9 μήνες)

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Virtual Currency & Gaming:

Analyzing Their Relationship

Bit by Bit(coin)

Michael D. Lipton, Q.C.

& Jack I. Tadman

What is Virtual Currency


What is virtual currency?



What is the connection between


virtual currency and gambling?



Virtual currency as currency used in social gaming (Value of virtual currency
and virtual goods are generally restricted to virtual world) (E.g. World of
Warcraft Gold, Zynga poker chips)



Virtual currency as electronic money (Form of alternative currency not
produced by any central banks) (E.g. Bitcoin)







Zynga Poker


Social gaming on Facebook involving poker



Launched in 2007, had approximately 40 million users during height of its
popularity



Users receive for free virtual currency in the form of poker chips. Users can
buy more chips either through Facebook, on black markets, or by giving
third parties users’ personal information.

Bitcoin


Created by “Satoshi Nakamoto”


an anonymous or pseudonymous developer
or group of developers


Debuted in 2009


Used in peer
-
to
-
peer transactions in which participating parties recognize its
value


No central bank or clearing house, no financial regulator, not tied to any
currency


Bitcoin are stored and sent through e
-
wallets


Traded/exchanged through online virtual currency exchanges (Mt. Gox,
TradeHill)

Bitcoin

(cont’d)


Approximately 11 million Bitcoin have been mined, 21 million Bitcoin in total.


“Miners”


supply Bitcoin network with computing power needed to maintain the
security of the block chain (a distributed technology that acts as Bitcoin’s ledger)


Every single Bitcoin carries the entire history of the transactions it has undergone,
and any transfer from one owner to another becomes part of the code


Bitcoin is stored in such a way that the new owner is the only person allowed to
spend it.


Miners are rewarded with “blocks” of issued bitcoins (a “block” currently contains 25
bitcoins); this is how currency is issued


Price of Bitcoin fluctuates wildly. As of April 23, 2013, 1 bitcoin is worth $130 USD


Bitcoin (cont’d)

Bitcoin/ $USD chart

Virtual Currency & Gambling

3 Elements of Gambling:


Consideration


Chance


Prize


Virtual Currency & Gambling:


E.g.
Zynga Poker


E.g.
Satoshidice.com
,
Bitbook.biz

Discussion


Virtual Currency & iGaming