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Bitcoin Cash Casinos – Will They Be Successful?

Bitcoin Cash Casinos – Will They Be Successful?

Update 13th November 2017: We are now listing all of the available Bitcoin Cash casinos here.

The split in the Bitcoin blockchain of August 1st 2017 created a new coin – Bitcoin Cash (BCH). This new coin uses the same software that runs Bitcoin, but with a few differences; the key change being its increase in block size from 1mb to 8mb. This increase in block size allows more transactions to be processed, and could attract the attention of Bitcoin casinos looking to receive deposits and payout withdrawals faster. BCH runs on a separate blockchain to Bitcoin, and as it stands, there is no compatibility between the two. Casinos that accept Bitcoin deposits and withdrawals do not – by default – accept BCH deposits and withdrawals. The result is that while BCH has a strong following and a market cap of over $5bn at the time of writing, the coin is essentially unspendable.

Will Bitcoin Cash Casinos Emerge?

As of today, there are no Bitcoin Cash casinos that we are aware of. Know of one that exists? Contact me

Bitcoin Cash enables more transactions to occur on the blockchain. This goes against the ethos of Bitcoin whose developers are determined to move transactions (particularly for small amounts) off of the blockchain and into “side chains”. These side chains act as payment channels, allowing unlimited throughput with nothing more than a simple on-chain opening and closing transaction. Think of it like a bar tab.

As it stands, these side chain payment channels do not exist, and the current Bitcoin blockchain is limited to 1mb of transactions every 10 minutes. This results in enormous congestion, and for Bitcoin casinos, deposits and withdrawals can take several hours to process. Bitcoin Cash is an immediate solution to these slow deposit/withdrawal times, and effectively guarantees that a transaction will be confirmed within 10 minutes. If technology was to stay as it is today, it would be inevitable that a Bitcoin Cash casino would emerge. However, for the following few reasons, I believe it is unlikely that Bitcoin Cash will be adopted by any of the major cryptocurrency casinos out there today.

  1. Bitcoin block size increase is coming
  2. BCH has increased transaction throughput with their blocksize increase to 8mb. However, Bitcoin intends to increase its block size to 2mb with a hard fork on November 1st, alleviating some of the existing transaction backlog. At this point, Bitcoin will be able to process casino deposits and transactions far more quickly, and somewhat nullifies the benefit of using the Bitcoin Cash chain for placing bets.

  3. Payment channels are coming
  4. As mentioned, the issue of onchain transaction delays may be a thing of the past in the not too distant future. With payment channels like the “lightning network” due to launch in the next 12 months, it is possible that millions of bets will be processed immediately with no limit to how many can be placed. In the medium run, BCH as a gambling currency may become redundant, with payment channel betting (like what we are seeing with Ethereum) taking the lead.

  5. BCH long-term usage is not clear
  6. BCH is a copy of Bitcoin with the immediate benefit of larger block sizes. As this immediate benefit is only short-term (Bitcoin will achieve the same transaction benefits in the near future), there is little reason for businesses and casinos to put the time and money into updating their software to accept Bitcoin Cash. Without a clear future for Bitcoin Cash, it is hard to imagine any casino extending deposits and withdrawals to BCH aside from the short-term benefit of generating some publicity.

This page will be updated the moment a Bitcoin Cash casino comes into the market. In the meantime, consider playing at any of these Bitcoin casinos or one of the many Ethereum casinos available today.

Published by Jen Van Lier

Jen Van Lier

About the author

As website manager, Jen contributes reviews and updates to The Bitcoin Strip on a daily basis. Jen worked in the casino industry for 9 years before focusing on Bitcoin in 2016. She writes on subjects ranging from traditional slots all the way through to unique Bitcoin games, provable fairness and Ethereum smart contract gambling.

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