I've been hosting some pretty popular freeroll BCH tournaments on https://blockchain.poker this week. Yesterday, the winner of the tournament asked about trading his "useless" BCH winnings for BTC. I posted this comment explaining why it makes absolutely no sense to use BTC for a tournament:
Someone asked in the site chat if they could "flip these useless BCH sats for bitcoin" (of course you can), but I'd like to explain with some simple math why BCH is ideal for running these tournaments.
The median fee to send a BCH transaction is $0.0005, while the median fee to send a BTC transaction is $0.74, according to https://bitcoinfees.cash. The evening tournament had 217 players and paid out the top 59 finishers. Of these 59 people ITM, only the top 16 paid out more than $0.74. If I was running the same tournament with BTC, that means that 33 people who were ITM and had "winnings" would have nothing at all, as the fee to send the BTC off-site would be greater than the total amount won.
It's actually worse than that, though. Suppose I finished in 7th place and won $1.50. I withdraw the BTC to my own wallet and the site has to pay a $0.74 fee to send it to me, so I'm only getting paid $0.76. BUT I STILL HAVE NO MONEY. Because I'll have to pay another $0.74 fee to send that BTC anywhere, I effectively only have $0.02 of spending power, and no one will accept 2 cents of BTC because they will be facing the same conundrum.
Maybe you're a whale and a $0.74 fee doesn't mean anything to you, but most people aren't depositing $1000 at a time to poker sites for that fee to be negligible. And even if you are a whale, it's still -EV to pay a $0.74 fee when you could pay a $0.0005 fee for the exact same service.
If anyone is interested, these tournaments have been pretty popular with the /r/poker community, averaging around 190 players in each one (and the tournaments have been password protected). I think blockchain.poker has seen hundreds of new users this week as a result. Unfortunately I can't afford to keep paying 0.25 BCH per day out of pocket to keep them going, but as long as casinos are closed and everyone is quarantined at home, I would like to keep them going, so I'm looking for sponsors for these tournaments. If you're a business and would like to sponsor, your logo will be displayed on the table felt to 200 users for ~2 hours straight, and the link of your choosing will be listed on both the tournament information page and on the dialogue that pops up when a player busts out of the tournament. DM me if you're interested.
If you want to help keep these tournaments going but don't care about promoting a specific logo/link, all chaintips/tippr tips sent to me in this thread will be used for funding more freeroll tournament prize pools.
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source https://www.reddit.com/r/btc/comments/flnz01/a_pound_of_feathers_and_a_pound_of_bricks_weigh/
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