Bitcoin was the very first cryptocurrency ever to be created back in 2009. After its success, more started to pop up – each with its robust features that made it unique.
However, it wasn’t up until 2015 that the second most significant cryptocurrency was invented. The name of it? Ethereum.
Since Ethereum is growing in gambling due to its security features, we will look at Ethereum gambling pros & cons to better understand if it is the cryptocurrency of the future.
What Is Ethereum?
Ethereum is a cryptocurrency that was created back in 2015 and is blockchain-based just like most others of its kind are. Its unique feature is that it uses smart contract.
The smart contract is a piece of a computer code which is mostly used to either ease, verify, or strengthen the negotiation or performance of said contract.
What most people don’t know is that Ethereum isn’t actually the name of the cryptocurrency but of the whole system which provides a cryptocurrency named Ether (ETH).
As opposed to Bitcoin, Ethereum doesn’t just function as a store of value; it works more like a ‘World Computer‘ allowing decentralised applications, smart contracts and data storage.
Ethereum Gambling Pros
When we get asked to answer what are the pros and cons of using Ethereum for online gambling, the next question is always the same – “Is it better than Bitcoin?”.
Both of those cryptocurrencies have so little in common yet they are becoming widly used for cryptocurrency gambling.
We have already analysed Bitcoin gambling pros & cons, but it’s time to compare to Ethereum and see which is a better option.
Most cryptocurrencies are excellent with keeping your details hidden while gambling online but Ethereum does an exceptionally great job.
Not only are you not asked to provide any personal details when signing up on an online gambling platform apart from a simple username but when you are using Ethereum you aren’t asked to do even that.
Many Ethereum Dice sites like Etheroll, don’t require you to register to play. You just link a cryptocurrency wallet with their client, and you are good to go.
When using any other cryptocurrency such as Bitcoin, you would be asked to provide at least some details even if that is only a username.
Beware, if a cryptocurrency online casino asks you to provide further details about you, then you should try finding another one. The whole point of using cryptocurrencies is anonymity, so why would you give that away?
Both Ethereum and Bitcoin operated on a blockchain technology which consists of blocks filled with data.
Each transaction is made using a cryptocurrency such as these two will fill up one space in this block. The transaction will be completed the moment the current block closes for the next “free” one to open up.
Bitcoin takes about 10 minutes to go over one block (the time increased to few hours recently), whereas Ethereum’s time processing a Block is only 12 seconds.
Cryptocurrency transactions are already fast, but when using Ethereum, they can be even instant.
However, this doesn’t mean you will have your money as soon as you make a withdraw from an online casino.
Before this process starts, the staff has to approve your withdrawal application first which may take minutes if not hours or days at worst.
The famous cryptocurrency is decentralised which means that there isn’t a single bank or banking system of any sort which has to authorise transactions made using it.
That means that you wouldn’t have to pay fees as all of the work is done by an automated system and not by real people who need to get paid for their work.
The only fee you will be obliged to pay will be the one going towards maintaining the blockchain maintenance. This price is otherwise known as ‘gas‘, and it functions as a fuel to the Ethereum’s blockchain.
This is the fee you pay, and it is different from what you would pay when using Bitcoin. Bitcoin has a standard cost you have to pay, whereas Ethereum will make you pay a distinct fee for your transaction based on the amount of data it allocates and the time and effort it needs to be processed.
For most people, this will be great as they gamble with relatively small amounts of Ether but for professional gamblers dealing with large amounts of money when playing online, this could be a bit disturbing.
Ethereum-based casinos are exceptionally secure thanks to smart contracts. They show the code running in the background of the game so that you can always be sure it is provably fair and there is not a single chance of the results being tampered with.
However, you will rarely see table games, apart from Blackjack or the Roulette, having their smart contract public.
Ethereum Gambling Cons
It’s a currency
By that, we don’t mean it is going to change form but that it is just another type of currency thus it can fall.
All currencies can fall at some point, and digital ones aren’t fireproof.
You should always know that and store your cryptocurrency at a safe place and not in an online cryptocurrency exchange.
If something happens and they are lost then getting them back will be very difficult if not impossible, to begin with. Hence, you have to invest in a reliable and secure cryptocurrency wallet.
When gambling on an online casino based outside your country, you always risk of losing your deposited funds.
This happens because the legal system can’t help if something goes wrong just because an organisation, such as an online gambling platform, will in most cases not operate from within the country you live in.
Thus it wouldn’t have any jurisdiction over it and couldn’t help you get your money back.
The Future of Ethereum Gambling
The future of cryptocurrency could most likely be Ethereum instead of Bitcoin, and the reason for that is their limited circulation.
When Bitcoin launched back in 2009 the number of coins it distributed was enormous, and nowadays the number of new bitcoins reaching the public is getting smaller and smaller by each month.
The number of bitcoins mined will probably become close to zero by 20 years from now or even less than that.
However, Ethereum halves their distribution of Ether each year that passes and is most likely to live much longer. When it comes to the future of gambling, Ethereum might be the one leading the game.
Bitcoin started being mined by standard CPUs and GPUs, but as soon as it grew in popularity, only specific pieces of hardware could do the job (ASICs).
Ethereum is different as to how easy it is to mine. You just need a relatively good GPU, and you are ready to start your Ether mining journey. Make money out of nothing and gamble it online to turn it to even more money.
As you have probably understood by now, Ethereum is way more flexible than the other cryptocurrencies and especially Bitcoin. This only shows how many possibilities it has and will have in the years to come.
Ethereum is undoubtedly a more secure and transparent platform for online gambling.
The most significant difference between Bitcoin-based poker and Ethereum-based casinos is in their function.
Bitcoin casinos refer to a method of payment – users can gamble, deposit and withdraw Bitcoin. Players based in the US have quite a choice, where to play. Our Bovada review is the good place to start the Bitcoin gambling.
Ethereum casinos, on the other hand, not only use Ethereum as a method payment, but the casino is built on the Ethereum blockchain-based platform.
We hope that you enjoyed our analysis pf Ethereum gambling pros and cons article as much as we enjoyed writing it for your better understanding of this particular cryptocurrency.
What you have to remember is that its advantages perfectly balances its drawbacks. We wish you good luck in your future Ethereum online gambling adventures.
And if you’re ready to start with Ethereum, don’t forget to check the best exchanges to buy Ethereum for online gambling!