The early days of Bitcoin mining share many comparisons with a gold rush. With relative anonymity and P2P (Peer to Peer) electronic payment transfer capabilities, Bitcoin is a very attractive cryptocurrency to most people. All of this, as well as the ability to mine new crypto tokens with a computer occasionally with outrageous profits, made Bitcoin mining a promising frontier. Is ZCash mining next in line for a similar outcome?
Initially launching in 2016, ZCash had the aim of providing greater anonymity to its users than Bitcoin offers. This is done by publishing all payments on a public distributed ledger (blockchain) and giving users a privacy option which conceals the amount transacted as well as the sender and recipient.
Zcash is a privacy-protecting, digital currency built on strong science.
Like most cryptocurrencies on the market, ZCash relies on its miners to add transactions to the blockchain. All nodes on the ZCash network contribute to confirming the validity of new transactions on the network. As it stands, the miners are the ones that take on the heavy lifting in securing the ZEC blockchain network. This is done by using a Proof of Work consensus algorithm for mining. With PoW, miners compete against one another by using large amounts of processing power and electricity to add a new block to the main chain. The first miner to complete the correct computation for each block is rewarded with a standard network block rewards, as well as any fees for the transactions they added to the blockchain. ZCash uses the Equihash mining algorithm, making ZEC an ASIC-resistant cryptocurrency.
ZCash mining is a good place to start for new miners. As this cryptocurrency is ASIC resistant, you don’t need to spend thousands on a mining rig just to stay competitive when solo mining. Most ZCash miners either use their personal computer system or made a mining rig out of multiple GPUs. Your mining experience with ZCash is entirely dependent on the hardware you settle for. When tasked with picking the right GPU for the job, it almost always boils down to picking either AMD or Nvidia. The card you use will be more or less effective depending on the hashing algorithm and the cryptocurrency you’re mining. In some instances, AMD cards outperform Nvidia cards. But when it comes to ZCash mining, Nvidia still reigns supreme.
The Equihash mining algorithm ZCash uses is much better to Nvidia cards than it is to AMD cards. Especially when using the EWBF mining software. If you’re looking into mining ZCash, you’re going to need an Nvidia graphics card. Whichever card you settle for, make sure it has at least 4GB of Ram if you’re using the EWBF miner. Technically you need at least 1gb to use this mining software, but old cards are less energy efficient and often have lower hash-rates. If you want to enter the ZCash mining scene on a budget, the GTX 1060 6gb is a good card to start with.
Monero #XMR is currently the most profitable coin to mine using GPU units, it’s winning over Ethereum #ETH Ethereum Classic #ETC and Zcash #ZEC since January 2018 👉🏽 https://t.co/eepdp4axyv #Mining #profitability #profit #cryptocurrencies pic.twitter.com/Bt8vr8TiUr
— InsideCryptoCoins.com (@insidecrypto365) November 5, 2018
The cost to competitively run a solo mining activity is extremely high. As a result, most miners decide to join a mining pool instead. Once your mining rig is installed and set up correctly, the last step is to decide if you’re going to join a pool or solo mine. There are plenty of mining pools to chose from. But one of the best for ZCash is Flypool. Flypool is one of the most recommended mining pools for Zcash. Charging low commissions, and controlling over 50% of the network hash rate. To set up your EWBF mining software with Flypool is relatively easy.
Once you get to the Flypool website, scroll down to the Windows-Nvidia section. Then copy the script example as seen below.
You’re going to paste that string of text into the Flypool .bat file in your EWBF miner folder. Once done, right click on flypool.bat and click edit. This will open a notepad file in which you should paste the code from Flypool. In this example, I’m going to update my server to “EU1” and remove the “–cuda_devices” code at the end. This code should only be used if you’re designating mining tasks to only certain devices. (This is convenient if you want to game with 1 GPU and mine with the other.)
After that, copy your Zcash wallet address and paste that in the flypool.bat file. In the example above, you would be replacing the user t1NF….8DX and replacing that with your own address. Now you can save your file as a batch file. To do this, click File>Save as and type .bat after the file name then save. Congratulations! You now have a batch file fully configured to start ZCash mining. For added convenience, you can create a shortcut of the new .bat file and add it to your desktop.
While ZCash may be one of the more profitable coins to mine, this is no game for rookies. If you want to make serious money mining ZCash, you’re probably going to have to invest in building a mining farm. Multiple GPUs and motherboards are the only way to rack up a hashrate high enough to make your profit worthwhile. For some people, mining cryptocurrency is a hobby, and making a profit doesn’t matter. But if this isn’t you, trading ZCash on cryptocurrency exchanges may be your best option. Trading crypto assets open you up to arbitrage opportunities which can help you make good profit daily if you stay consistent. Will you be trading or mining ZCash? Why? Let us know your thoughts in the comments below!
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.