Cryptocurrencies are becoming more and more prevalent in online gaming with each passing day. They’re now accepted alongside traditional payment methods, such as the following:
Bitcoin started the trend of crypto being accepted for online casino deposits. However, other cryptocurrencies have since joined the party.
Bitcoin Cash (BCH) is among this group. BCH draws immediate comparisons to Bitcoin due to its name alone.
But does it work the same as Bitcoin with relation to online casinos? You can find out below as I discuss more on Bitcoin Cash, how to use it on Bitcoin online casinos, and its pros and cons.
What Is Bitcoin Cash?
BCH is the result of a “hard fork” from Bitcoin in August 2017. Bitcoin Cash split from the Bitcoin blockchain to form a new and separate currency.
The split happened because prominent figures in the Bitcoin community, including Roger Ver, thought that the “block size” needed to be increased. Ver argued that increasing Bitcoin’s block size would lead to better transaction speeds and more overall use.
He and his group forked to form Bitcoin Cash, which carries many of the same fundamentals as Bitcoin, save for the larger block size.
Ver and Bitmain’s Jihan Wu wanted to keep the block size at 32MB. Meanwhile, Wright and Ayre wanted to increase it to 128MB.
Bitcoin Cash became known as Bitcoin Adjustable Blocksize Cap (ABC) following the split. However, it’s still largely referred to as just Bitcoin Cash.
Bitcoin Cash’s Place in the Online Gambling World
Like many cryptocurrencies, BCH is decentralized, meaning it’s not controlled by any single person or organization. This decentralization prevents central banks and governments from blocking gambling deposits made with Bitcoin Cash.
Some countries have restrictive laws against internet gambling. For example, the US has a law called the Unlawful Gambling Internet Enforcement Act (UIGEA).
The UIGEA makes it illegal for online gambling sites to accept payments from states where iGaming is illegal. For instance, taking deposits from Washington, where online gambling is a felony, would violate this law.
Many financial institutions won’t serve American gamblers as a result of the UIGEA. Bitcoin Cash offers a way around this situation so that players can still make deposits.
Offshore casinos aren’t immune to the UIGEA just because they accept BCH deposits. However, they can still connect with customers via Bitcoin Cash while floating the law.
Of course, BCH can be used at some sites beyond just those in offshore markets. But its primary gambling function is to allow for deposits where traditional options aren’t available or hard to use.
Steps to Playing at Bitcoin Cash Casinos
Using Bitcoin Cash can be tough in the beginning if you’re used to depositing with credit cards, e-wallets, and/or prepaid cards. However, it becomes much easier to use after the first time. Here are simple instructions for how you can make online casino deposits with BCH.
Purchase Bitcoin Cash
The first step to playing casino games with BCH is to acquire this cryptocurrency. You can either have a friend or relative send it to you or purchase it from an exchange.
The latter route is how most people get into crypto. Several prominent exchanges offer the ability to purchase Bitcoin Cash with fiat currencies (e.g. USD or EUR).
Coinbase and Gemini are two such options. Each lets you purchase BCH and other cryptocurrencies with USD.
Here’s where things get tricky, because some banks and credit cards won’t approve purchases of cryptocurrency. However, you should have access to a usable payment if you look hard enough.
The next step is to choose how much BCH you want to buy and confirm the purchase. You should only have to wait a short while before the transaction is complete.
Store Your BCH
Ideally, you’ll store your Bitcoin Cash in a software or hardware wallet. The former refers to online wallets, while the latter refers to a physical “cold storage” (a.k.a. offline) device that holds your digital coins.
Both options are acceptable ways to retain full ownership of your Bitcoin Cash. However, the drawback is that you’re completely responsible for taking care of the software wallet info or cold storage device.
If you lose your device or software wallet credentials, then you also lose your BCH. For this reason, some gamblers simply choose to leave their Bitcoin Cash on an exchange.
The problem with this, though, is that the exchange technically controls your cryptocurrency. If they go bankrupt or get hacked, then you can lose everything.
But the benefit is that you don’t have to worry about keeping track of the BCH yourself. Instead, you can just log onto the exchange at any point to access your coins.
Deposit and Begin Playing
Once you find an internet casino that accepts BCH, you need to navigate to their banking section and generate a wallet address. This is the address where you’ll be sending your deposit.
Next, go back to your wallet or exchange site and choose to send Bitcoin Cash. This is the point where you must enter the address you generated at the casino.
After confirming the transaction, you should receive your gambling funds within 10 minutes or less. Sometimes, you may have to wait longer, though, if the network is congested.
Pros of Gambling With Bitcoin Cash
I’ve touched on some of the benefits regarding using BCH to gamble online. However, I’ll go more in-depth with the various advantages below.
Low Deposit and Cashout Fees
Bitcoin Cash “miners” facilitate transactions involving this cryptocurrency by solving computational puzzles. In exchange for completing transactions, the miners receive a small fee from users.
You can pay a larger fee in order to get your deposits completed as fast as possible. After all, more miners will compete to finish your transaction in this case
However, paying a high fee isn’t necessary. You can instead offer a small amount of BCH and still get your deposit completed within a reasonable amount of time.
Larger BCH block sizes mean that this cryptocurrency can cover more transactions per second (TPS) than Bitcoin. It also compares favorably to the speed of other popular deposit methods, such as e-checks and e-wallets.
Of course, credit cards are the king of speed when it comes to gambling deposits. But Bitcoin Cash is a nice alternative when you’re tired of having your credit card rejected at gaming sites.
Perhaps you want to keep your online casino deposits secret for one or more reasons. BCH is an excellent choice in these cases.
The Bitcoin Cash network only identifies transactions by wallet addresses. As long as nobody knows you’re behind a wallet address, then they won’t know who’s making a transaction and why the transaction is being made.
No Government or Bank Control
Earlier, I highlighted the problem that the UIGEA causes online gamblers. It not only scares some financial intermediaries away from gaming, but also motivates others, like Visa and MasterCard, to reject deposits.
But BCH isn’t subject to control by the US government or financial institutions. This aspect makes it perfect for depositing at offshore online casinos.
Cons of Gambling With Bitcoin Cash
Based on the advantages above, BCH definitely seems like a great way to fund your casino account. However, it also has some notable downsides, including those covered below.
The entire crypto market is a volatile space that sees huge rises and falls in a matter of minutes. Bitcoin Cash is no exception to this volatility.
You’ll essentially be gambling on two fronts:
- With the games themselves
- With your daily bankroll fluctuations
Credit cards are widely popular at gaming sites because they’re easy to use. You only have to enter a series of numbers to complete a deposit.
BCH isn’t much more difficult to use once you get the hang of it. However, you may not be interested in this learning curve if you haven’t used crypto before.
Not as Widely Accepted as Bitcoin
Bitcoin Cash may allow for more TPS than Bitcoin due to its bigger block sizes. However, it’s still nowhere as popular nor accepted.
Many Bitcoin online casinos now take Bitcoin for deposits. A much smaller percentage accept BCH.
Can Easily Lose Funds
Some see big banks and credit cards as the root of all evil. But the good thing about using these services is that they have support staff to help you when things go wrong.
The same can’t be said of Bitcoin Cash and other cryptocurrencies. If you make a mistake, like sending your casino deposit to the wrong address, then your funds are gone.
You may also have a mishap with regard to losing your private key (software wallet) or hardware device.
Bitcoin looks to be the favored cryptocurrency at online casinos for quite some time. However, BCH is gaining steam throughout the gambling world.
Its faster TPS gives it an inherent advantage over Bitcoin. BCH also offers the same anonymity and decentralization benefits as the coin it forked off of.
The only problem, though, is that Bitcoin Cash isn’t as widely accepted at online casinos. Many gaming sites are perfectly fine with just accepting Bitcoin deposits.
But you can still consider BCH whenever possible. More and more casinos are adopting it as the popularity of cryptocurrency spreads.