If you’re a dedicated Bitcoin Cash user, there is a way you can support the network and earn some BCH simultaneously. Bitcoin Cash mining works similarly to Bitcoin mining, though there are a few differences we will go over in this guide. Miners receive rewards for successfully mining a block of transactions and adding it to the blockchain. On the Bitcoin Cash network, the reward is 12.5 BCH per block as well as all transaction fees that were charged within the block.
Depending on how serious you’re willing to take it, yes. Nowadays, specialized mining hardware rules the mining scene. ASIC miners blow GPU and CPU mining out of the water, so if you actually want to turn a profit, you’re going to need to spend some money. But before you invest, you should take a look at mining profitability calculator. In order to use this calculator properly, you’ll need to find out your computer’s hash rate. If you’re using an ASIC miner, find the hash rate it puts out.
While the process of Bitcoin Cash mining is similar to Bitcoin mining, there are a few key differences. One of the most significant differences between them is their block size limit. Bitcoin Cash has a block size of 8mb while Bitcoin only has a block size of 1mb. This can be a good thing or a bad thing depending on how you look at it. For example, bigger blocks require more computing power to mine, which also means a bigger investment. But by the same stroke, bigger blocks also have more transaction fees the miner can collect.
As both Bitcoin Cash and Bitcoin share the same blockchain, the rewards given for every block mined is the same. 12.5 tokens are distributed whether you’re mining Bitcoin or mining Bitcoin Cash. As of writing this post, Bitcoin (BTC) is currently trading at $4000, and Bitcoin Cash (BCH) at $170. The difference in price between these two coins is huge. As a result, in an attempt to attract more miners to the BCH network, the mining difficulty for BCH is significantly lower than Bitcoin’s. This is where EDAs (Emergency Difficulty Adjustments) are a huge help.
An EDA triggered the instant an automatic difficulty recalibration made Bitcoin Cash 300% more difficult to mine. This attracted many miners back to the BCH network. But what’s most interesting about this, is the fact that many of them continued to mine at a loss. Some people believe this was simply due to miners believing in BCH, sticking with the fork.
Contentious hard forks are fascinating: the epitome of all that is cryptocurrency. Bitcoin Cash will shortly hard fork into two chains. There are threats of game theory (mining) attacks, of attacking the engineering of networks with spam or zero day attacks, and of
— Ari Paul (@AriDavidPaul) November 15, 2018
Both Bitcoin (BTC) and Bitcoin Cash (BCH) use the same hashing algorithm SHA256. As a result, they are battling for hashing power from the same group of miners. Be that as it may, Bitcoin Cash is renowned for being more profitable to mine due to lower difficulty levels. The largest Bitcoin Cash mining pools are ViaBTC, AntPool, BTC. Top, and BTC.com. The profitability of mining a crypto coin depends on the value it holds, the fees included, and the network difficulty for mining. Network difficulty will steadily increase as more miners join the fold, contributing their hashing power to mining the coin. This lowers overall mining profitability.
Currently, Bitcoin cash is working hard to reverse the trend in which very few online merchants accept BCH as payment. By adopting larger block sizes, this can be made possible. Bitcoin Cash also refuses to implement SegWit. With these systems in place, Bitcoin Cash will see a jump in scalability, allowing the blockchain to support more total transactions. The term for this is ‘on-chain scaling’. This could result in higher prices for BCH tokens, which will increase the profitability of Bitcoin Cash mining as a result.
If mining is too big of a commitment for you, trading is always an option. Especially now while the markets are low. Buy low, sell high! Bitcoin cash mining can be profitable in almost any market environment so long as your mining conditions are correct. If you’re not spending too much on hardware and electricity costs, turning a profit is easy. However, in order to make a profit worth the effort, you may need to consider creating a mining farm with either multiple ASIC miners, or multiple GPUs. Cryptocurrency mining is highly competitive, so without the right hardware, you risk mining at a loss.
If you still haven’t found the right cryptocurrency to mine, we have a blog post on mining the top 10 cryptocurrencies. Bitcoin Cash is in a highly volatile state following the recent Satoshi Vision hard fork.
This article is intended to educate and should in no way be seen as investment advice or an enticement to use the ice3x.com platform. Bitcoin is highly volatile with big profit opportunities but you should also remember that you could lose part or all of your investment whenever you take part in any high risk investment. Bitcoin trading is not a regulated industry in South Africa, which in itself carries additional risks. IF YOU ARE NOT AN ASTUTE BITCOIN TRADER, SEEK INDEPENDENT FINANCIAL ADVICE BEFORE MAKING ANY INVESTMENTS.