If you’re first hearing about Bitcoin Cash, let us tell you from the very beginning that it is not much different than the original Bitcoin. It is also actually built on the basis of Bitcoin, and it is also a decentralized, peer-to-peer digital currency. So what’s the difference between Bitcoin and Bitcoin Cash? The secret is in scalability. But to explain how and why we have to share with you the whole story.
Bitcoin…
…was released by Satoshi Nakamoto, who intended to make the banking system as we know it and fiat currencies redundant. With that, he created an open-source, fully independent peer-to-peer platform, where people would be able to exchange money at low costs, instantly and without a central authority overseeing it.
This approach, of course, appealed to the public. Millions of people started using the cryptocurrency, but the platform couldn’t withstand the amount of transaction requests. So, what once made the cryptocurrency attractive was suddenly gone. Transaction confirmation times were prolonged, higher fees were introduced, and the market share dropped. So, due to sustainability capacities, the blockchain system was overloaded.
The blockchain system overload…
…led to a split, on the 1st of August, 2017. And this is when Bitcoin Cash was actually formed. One side of the Bitcoin patrons wanted to retain the fundamental characteristics of Bitcoin, which meant keeping the decentralization, anonymity, and security, while others were supportive of the idea of making it more scalable. Having no way of settling their differences, the two sides had to split, and this movement is known as the hard fork. Bitcoin supporters introduced the SegWit2x measures, increasing its scalability by turning each block’s size from 1 MB to 2 MB.
Bitcoin Cash…
…founders, on the other hand, directly upgraded the blocks from 1 MB to 8 MB. And this is how this new cryptocurrency was born, from then on considered as a separate cryptocurrency. To answer the question posed at the beginning, the difference between Bitcoin and Bitcoin Cash is that the former only doubled the size, while the latter made even bigger changes in terms of scalability, allowing for faster transactions.
How Bitcoin Cash Works?
When the split happened, Bitcoin users were given the choice to pick sides. Those that wanted to go with Bitcoin Cash were given the right to keep the exchange value of their current Bitcoins.
The decision…
…meant that those users were giving up the Bitcoin blockchain and joining the Bitcoin Cash blockchain. This means that all transactions are separate. While Bitcoin characteristics were kept the same, Bitcoin Cash is now considered a safer and faster option. Unrestricted block size and growth potential are now characteristics of Bitcoin Cash, therefore, this method is now outshining the original.
While…
…one option for obtaining Bitcoin Cash was retaining their Bitcoin coins amount, there is also a second option for getting Bitcoin Cash tokens. That option is, just like with the original, the peer-to-peer trading option. People all over the world are trying to find suitable matches in their vicinity. Considering peer-to-peer trading includes a face-to-face meeting, with internet connection requirement that would support the process, this option is not always the best case, but it is still a reasonable one.
However…
…there’s also a third option, and that’s the exchange platforms. Those interested in obtaining tokens can visit one of the two dozen exchange sites that support the cryptocurrency and allow exchanges with fiat currencies and other cryptocurrencies.
Once obtained…
…the coins should be stored to a suitable wallet storage, just like with Bitcoin. Whether users want to go with offline or online eWallets, software downloadable apps or paper wallets, it is up to them. Anyways, all solutions implement two alphanumerical keys, the public and the private. The former denotes the eWallet address, while the latter the password.
Using Bitcoin Cash at Online Casinos
As emphasized, Bitcoin Cash offers scalability, and that’s why online casino players prefer it over the original. Why? Well, because the block size was increased from 1 MB to 8 Mb. While the original offers an average of 10 minutes for single block processing, the new one offers it in less than 2 minutes.
The speed and durability, the anonymity, the security and the decentralization, therefore, make the new cryptocurrency a really attractive payment option for both deposits and withdrawals at online casinos.
Online casino players…
…can benefit from all of its characteristics, considering fast decisions are paramount when playing games like blackjack, for instance, a high-roller game where quick payments make all the difference. Its decentralized nature and anonymity, on the other hand, makes it a perfect option for those players afraid for their identity being exposed and their money being followed.
In short, Bitcoin Cash is an option pretty similar to Bitcoin, but with better scalability, which is something that’s really important for online casino players. That’s why this payment method is quite popular in online gambling, with over a hundred of sites offering it as an accepted cryptocurrency.
Making Deposits and Withdrawals
Once you obtain your BCH tokens and store them on the preferred wallet, you are ready to start playing at an online casino. Naturally, you would first need to create an account with a casino that offers it as a payment method and then proceed. Fortunately, almost all sites that accept the original also accept the new cryptocurrency. The next step would be logging in to the casino, and going to the Cashier/Banking page.
To make a deposit…
…find the cryptocurrency from the available deposit options, and enter the required information. The required information would include the address of the wallet where your coins are, and the amount you want to deposit. Once you’ve done that, you’ll need to confirm the transaction.
The coins will be at your casino account in no time. Therefore, you’ll be ready to use them on your favourite online casino games, be it slots, Live Casino games or other online casino game variety developed by some of the leading software developers.
Withdrawals…
…are performed in the same manner. You need to be logged in, and you need to go to the Banking/Cashier page. You need to choose the cryptocurrency and fill the same required fields. However, upon withdrawal, you need to be extremely careful. You need to be 100% sure that you’ve entered the right wallet address.
Once entered, that is the final destination where the coins will go. If you’re familiar with other cryptocurrencies, you should know that once the final destination was entered and the transaction was finished, it cannot be reversed like with many other payment methods. That is why you need to pay attention when writing your wallet address if you don’t want for your coins to end up at another user’s address. If that happens, it would be impossible to get the coins back.
Pros and Cons of the Cryptocurrency
Considering you have plenty of other cryptocurrency options with similar characteristics, you must be wondering how to decide on the one to go with for playing at online casinos. Well, after you read about the advantages and disadvantages of using this cryptocurrency, you should be able to make your decision.
Being a fee-free payment method, this cryptocurrency is the perfect solution for keeping all of the winnings you make for yourself. Sure, some fees for the mining process behind the transaction apply, but they are hardly notable when compared with the fees required by other cryptocurrencies.
Security is at its core, also. BCH implements the latest encryption technologies, is fully decentralized and asks for no personal information when using it. This means that as long as you don’t share any details about your coins and keys with someone else, you are the only one who knows them. Therefore, it is impossible for third-parties to interfere with your coins and transactions.
The fact that it is scalable, means it can process a much greater volume of transaction than the original, which means a better and more practical online gambling experience for you.
In addition, the transaction processing times are instant, which is something online casino players are desperately looking for, especially when it comes to withdrawals.
On the other hand…
…the main disadvantage of cryptocurrencies in general, BCH included, is that the transactions are irreversible. One simple mistake, a wrong letter or digit you enter when writing down the wallet address, and your money is lost for good.
Also, its value undergoes fluctuations, with a different impact. Its stability on the market is still uncertain, so before you’re even aware of it, you could lose a chunk of your money when its value decreases.
Finally, due to regulatory reasons, cryptocurrencies, BCH included, are not allowed and even banned in some countries. Therefore, even if you wanted to use it, you couldn’t do so if it is not allowed in your country.
FAQ
What are Bitcoin Cash casinos and where do I find them?
Casinos that feature it as a payment method for deposits and withdrawals are considered Bitcoin Cash casinos. As mentioned, there is a number of such casinos you can join, mainly those that already accepted Bitcoin before Bitcoin Cash appeared. However, that does not necessarily mean that all casinos that accept Bitcoin will accept BCH, too. So before you consider joining one, make sure you double-check which one is really available.
Are there special games that can be played with BCH?
As a matter of fact, yes. Not all online casino games are optimized for real cryptocurrency play. In most cases, players need to play with credits corresponding to fiat currencies and then exchange those for cryptocurrencies upon withdrawal. However, there are some developers that have made it possible for players to play with cryptocurrencies, too. The majority of casinos that offer BCH as a payment method are casinos optimized for cryptocurrency play, therefore, they offer games by such developers.
Will I get a different treatment at online casinos for playing with BCH?
Unless it is in regards to waiting times and terms about the use of wallets, you should not be treated differently than any other player using a different payment method. Bitcoin Cash has become a popular method across online casinos, and there are no longer uncertainties about its nature.
Are there special bonuses BCH users can claim across online casinos?
Cryptocurrency-based online casinos, naturally, offer bonuses for BCH users. However, you may also find regular online casinos where both fiat and digital currencies are accepted that will offer such bonuses. There are many online casinos which offer these bonuses, in order to encourage players to play with a certain method, BCH included.
Which are the alternatives that I can use?
Considering BCH was created on Bitcoin’s basic principles, Bitcoin is the first on the list of alternatives, followed by Litecoin, Ethereum, Dogecoin and Ripple. Of course, these are cryptocurrency alternatives, however, you can always use worldwide-used payment methods which function with fiat currencies.
Can I deposit Bitcoin at a BCH casino?
No. As introduced, BCH was founded after people with different opinions towards how Bitcoin should continue split ways. Since then, BCH and Bitcoin are two totally different payment methods, with their own separate blockchains, coins and wallets. Therefore, you cannot play at a BCH casino with Bitcoin or vice versa.