Bitcoin Cash (BCH) is one of over 1,500 cryptocurrencies currently on the market. However, Bitcoin Cash is unlike most other digital currencies — it is arguably the closest relative to the original cryptocurrency, Bitcoin. Its ability to handle pseudonymous, instant digital transactions with low fees has made it a top deposit method for a growing number of online cryptocurrency casinos.
On the technical side, Bitcoin Cash was created from a hard fork of Bitcoin – meaning that the technology behind Bitcoin Cash is essentially a copy of Bitcoin’s technology. There were, however, a few significant improvements made to the code which insure quicker transactions and lower tx fees compared to the original Bitcoin network.
Although BCH is not the only fork of BTC, it has certainly been the most successful thus far (if not the only successful fork of BTC). After a lengthy duration of debates, it was proposed by a group of discontent investors, traders, miners, developers, and other enthusiasts who sought to resolve the scalability issues that Bitcoin has been experiencing recently.
As you probably already know, a blockchain is the digital ledger that records every transaction made on a cryptocurrency’s network. The scalability issue faced by BTC gave rise to the emergence of BCH… the king of cryptocurrency was (and is) not without its shortcomings after all. The BCH fork was successfully executed on August 1, 2017 which meant that if you held Bitcoin at that time, you would have received an equal amount of Bitcoin Cash.
Further, this new cryptocurrency has received its own fair share of criticisms. For one, many enthusiasts detested its pseudo-decentralization management right from its creation. This supposed setback made its entrance into the cryptocurrency market to be visited with kids’ glove. However, in November 2017, a lot of interest in the altcoin was aroused following a significant price surge which moved BCH to 2nd place on the list cryptocurrency market capitalizations, overtaking the now-second Ethereum. Since then, it has moved up and down on the list, but has consistently maintained its status as a top 10 cryptocurrency.
Despite the fact that it just emerged in the cryptocurrency market, it has managed to follow behind BTC while competing with LTC and ETH. Not bad for a ‘baby cryptocurrency’, and it definitely goes to show it has potential to lead the cryptocurrency gambling market anytime soon.
Online Bitcoin-only casinos are gradually becoming a prominent concept. It is estimated that there are more than 200 online casinos processing transactions with BTC in 2018. Recent statistics by The Bitcoin Strip even goes to show a progressive increase in the acceptance of cryptocurrency for gaming transactions.
It was shown that there has been a surge in online gaming from 60 bets per second with 1.53BTC/$390 in the Q1 of 2015 to an average of 100 bets per second wagered at 1.73BTC/$1700 in the Q1 of 2017 (considering the price of BTC in 2015 compared to 2017). With $1700 wagered on average, we can estimate that the crypto market generates about $13.5 million per year. Let’s also consider that the data was pulled from prominent—or at least recognized—online casinos with non-prominent sites being left out.
Given the prominence of BTC-only casinos, there are presently no BCH-only casinos. The reason is not farfetched, however, considering Bitcoin Cash just recently made its way into the cryptocurrency market and is still building momentum. Similarly, the advantages that BCH offers over BTC are evident enough for online casinos to start installing the BCH transaction option in addition to other cryptocurrencies (mostly BTC, ETH, and/or LTC) and/or fiat currencies.
As a result, Bitcoin Cash is anticipated to gain more ground in both the cryptocurrency and online gambling worlds. It should be noted as well that only a handful of traditional real money online casinos currently accepts BCH and no regulated casino — a casino that is controlled by a government agency charged with regulating casinos and other types of gaming in a geographical region — in the US accepts BCH just yet.
The truth is that there are thousands of online casinos for those who want to indulge in gambling – but many gamblers prefer discretion because a number of these casinos do not have an established reputation. How then does one separate the wheat from the chaff? The answer is quite simple really: stick with casinos that have built a good reputation for themselves over time. Playing it safe is the rule of the game, as there have been cases of sites creating fake reviews to boost their credibility and casino sites that have existed for donkey years (or months) suddenly closing shop, leaving players stranded.
As expected, the Bitcoin Cash gambling market is still very young. This only makes sense because the coin itself is just a few months old…and considering its considerably wide acceptance, it has the highest rate of growth when compared to even Bitcoin (2009), Litecoin (2011), and Ethereum (2015).
Nonetheless, one cannot compare the number of Bitcoin casinos to Bitcoin Cash casinos. For one, there are no BCH-only casinos while there are dozens of BTC-only casinos. This case is similar when Bitcoin Cash is compared with Ethereum or Litecoin, or even coins like Monero, Dogecoin, and Dash. However, despite its young and yet prominence acceptance, Bitcoin Cash is very impressive and will surely grow with time.
Bitcoin Cash gained prominence in the crypto market due to its seeming resolution of the scalability and processing time challenges faced by BTC. The limit of each block size of Bitcoin is 1MB; this has undoubtedly made having speedy transactions and confirmation of transactions a rather daunting process — plus expensive due to the high transaction fees.
Bitcoin Cash, on the other hand, introduced an adjustable block size with a limit of 8MB. This reintroduced the initial low processing fees that BTC offered before its huge success, which the cryptocurrency community applauded. Similarly, the transaction processing time was drastically reduced, which means you could carry out more transactions in a space of 15 minutes using BCH than you would with BTC. The block size limit of BTC caused a restraint on its processing speed, making transactions prone to backlogs.
Couple everything we went over above with the average transaction costs for BTC reaching as high as $30-$40 at times while BCH is from $0.027 to $0.11. This makes BCH a better choice of cryptocurrency for gambling if transaction costs are a consideration — but, of course, they are. However, there are some casinos that do not charge a dime to make a BCH deposit but only place a fee on processing withdrawals.
There isn’t any form of competition involved with gambling using BCH because gamers (and anyone else) can easily have their transaction quickly included in a block, unlike having to use BTC which has loads of users competing to have their transaction included in blocks (which also have a much smaller capacity).
If you need to bet with low stakes, then you should definitely embrace Bitcoin Cash. The low deposit involved in using BCH gives room for an increased number of transactions a user can undertake. The case isn’t the same with BTC that requires a very high deposit.
In late December 2017, Bitcoin.com put the average processing speed of BTC at 34 to 1188 minutes while that of BCH was from 8 to 19 minutes. The speed range invariably is determined by the casino in question. Indisputably, the processing speed of BCH is a large improvement on that of BTC. However, Ethereum, Litecoin, Monero, and Ripple have a much faster processing speed than BCH — an average of 14 seconds, 2.5 minutes, 120 seconds, and 3.5 seconds respectively.
On the technical side, BCH provides an adjustment to the difficult mining algorithm of BTC. The difficult algorithm required that changes can only be made every fortnight. This became a hassle for most miners who wanted an algorithm with more frequent changes. With BCH’s algorithm, more frequent changes can be made to how BCH functions, which is exactly what many miners have been rooting for.
Compared to the numerous deposit options offered by online casinos, the withdrawal option via BCH is very limited. Most casinos will endeavour to use your preferred withdrawal option but if it is not available, other options like Bank Transfer, Neteller, Skrill, VISA, and MasterCard are always present as a means to cash out.
Bovada is one example of an online casino that accepts Bitcoin Cash deposits but does not allow withdrawals via BCH. However, casinos like FortuneJack, mBitCasino, and Champagne Spins do accept deposits and issue withdrawals via BCH as well.
Bitcoin Cash seems to be garnering backing from the most influential of the iconic brands (Satoshi Dice, as a prime example, now accepts Bitcoin Cash deposits). Satoshi Dice is one of the pioneers of cryptocurrency gambling and the oldest dice website since the inception of Bitcoin (or crypto) gambling. It is a renowned organization within the crypto gambling community as every casino that accepts at least one cryptocurrency as a means of transactions has its origin from the successful innovations Satoshi Dice has offered the industry…and with this development, most iconic brands are starting to pull their weight behind Bitcoin Cash gambling.
Precisely when the hard fork was processed (13:16 UTC on August 7, 2017), whoever owned 1 BTC automatically received 1 BCH. As of early April 2018, the price of 1 BTC and 1 BCH — as read from CoinMarketCap — is ~$6,800 and ~$640 respectively. Again, the scalability, transaction fees and processing times of BCH are far superior to BTC.
Meanwhile, many exchanges are presently exchanging BCH for fiat currencies unlike when it recently joined the cryptocurrency market. Cryptocurrency exchanges (such as HitBTC, Kraken, Changelly, ShapeShift.io, and Poloniex) would now gladly convert your BCH into fiat currencies, ready to appear in your bank account. However, some exchanges have reservations about buying BCH or accepting fiat currencies in exchange for BCH. This is mostly due to the low exchange availability of BCH. If you find yourself in a situation like this, there are a couple of ways you could convert your BCH into cash without any loss.
You could opt to convert your BCH to BTC or any other cryptocurrency that has a ready market. Since BTC and BCH are two different cryptocurrencies, you cannot directly transfer BCH into a BTC wallet. So first, you will have to find a wallet that supports BCH, then move your BTC from the wallet so that someone does not gain access to the BTC using the private keys. Afterwards, sweep your BCH into the wallet by giving the private key of the BTC you moved from the wallet. At this point, send your BCH to an exchange, after which you create an order to sell your BCH and get BTC, then send your BTC to your wallet (BTC).
If you are not comfortable with carrying out this process, you could consult with a guide for more details. The idea is basically to inform you that there are ways to exchange BCH if you choose to gamble using the cryptocurrency.
In conclusion, BCH may not be the king like BTC or in second place like Ethereum, but the uniqueness it brings aboard is one that cannot be ignored. Hence, it should be applauded and explored. For a digital money just a couple of months old, it has built quite a reputation for itself and has taken giant feats already in the online gambling industry. This is one cryptocurrency to believe in and definitely watch out for, so considering using BCH for your next gambling transactions would not be a bad idea at all.