Virtual Currency & Gaming:


3 Δεκ 2013 (πριν από 4 χρόνια και 6 μήνες)

85 εμφανίσεις

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

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.


Created by “Satoshi Nakamoto”

an anonymous or pseudonymous developer
or group of developers

Debuted in 2009

Used in peer
peer transactions in which participating parties recognize its

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

Bitcoin are stored and sent through e

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



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


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:




Virtual Currency & Gambling:

Zynga Poker



Virtual Currency & iGaming