A while ago, we saw that a hardfork on the Bitcoin network created Bitcoin Cash and this new cryptocurrency started off as a separate currency from Bitcoin. Bitcoin Cash network is worth of more than $ 2 billion, and in this tutorial, we plan to provide whatever you need to know about Bitcoin Cash mining.
What do we mean by mining Bitcoin Cash?
Like other blockchain-based currency projects, miners must approve transactions. Anyone can start mining bitcoin cash by purchasing hardware and downloading the necessary software, which we will continue to introduce some of them.
Just like Bitcoin, a block of transactions is approved by Bitcoin Cash miners every 10 minutes. To confirm the transaction, the miners must answer a cryptographic question. This question is so difficult that one can not come up with the answer to it, and for that, there is a need for high computational power.
Each miner competes in Bitcoin Cash network to be the first to solve the question, since anyone who is the first will win the transaction reward. The current reward in the bitcoin cash network is 12.5 BCH for solving each question or actually completing the block.
In addition to the reward, the miner also obtains the transaction fee that has been received at the time of the transfer from the sender. The organization or person with the most powerful mining hardware has a greater chance of winning the Bitcoin Cash mining reward.
Now that we know the meaning and purpose of mining Bitcoin Cash, we can discuss more about the details.
Is Bitcoin Cash mining profitable?
To start the Bitcoin Cash mining, you have to spend on mining hardware, but is it profitable?
How much you succeed in mining depends entirely on your equipment, so you need to spend as much as you can to buy the most powerful devices, otherwise you can’t get the reward in competition with other companies.
But it’s not just the purchase of a device that you need to consider, but also the cost of electricity you pay for the device is very important.
It’s good to know that while you are solving a question, other miners are also busy solving the same question, and if you do not solve that question faster than others, only power consumption will stay for you!
How much your electricity cost will depend on the country in which you live; for example, China is one of the cheapest countries in terms of electricity costs, and so many miners are active there.
In contrast, South Korea is one of the most expensive places in the world for electricity.
Due to recent drops in cryptocurrency market, many Chinese miners have been ending their job.
The last point to consider about the profitability of bitcoin cash mining and even other coins is the market value of that coin.
Given that after the Bitcoin Cash mining process, your reward is paid in Bitcoin Cash, the higher its price on the market, the more profit it’s for you, and if its price falls, you may also be losing out.
There are also websites that help you calculate the profitability of mining Bitcoin Cash at any time interval.
Bitcoin Cash mining devices
If we were in the early days of the emergence of cryptocurrencies, it would have been easy to mine a cryptocurrency, and especially bitcoin, with a CPU or graphics card, but today you have to have a strong device if you actually want to earn something.
Fortunately today, the industry has grown so well that the special tools for mining a cryptocurrency are ready on the market and you can easily start by purchasing them.
The hash power of each device is different, and at the time of purchase it is necessary to note the power consumption of the device as well as its price.
Bitcoin Cash mining software
Just as much as hardware, software is also an important part of mining cryptocurrencies. Once you have bought your ASIC miner, you need to download and install a series of software to communicate with it.
Usually, however, the software you need comes with your ASIC miner, and it is suggested that you use only the same software.
However, there are plenty of software for mining through the graphics card or CPU that you can use to start Bitcoin Cash mining without having to buy special hardware, but these are not recommended because of the reasons we mentioned earlier.
Applications such as the Miner Gate can use the power of your computer or laptop for mining without the use of certain equipment.
Bitcoin Cash mining pools
We explained about the hardware required to mine Bitcoin Cash. But what you need to consider is that as there are many competitors now on the network, it is very unlikely to make profit if you mine on your own and just with one ASIC miner.
Instead, there is a concept called the mining pool. In a mining pool, several miners come together and collaborate on one goal which is earning profit by mining.
As a result, their mining power is aggregated, and the resulting benefit is divided among the mining partners.
Many people who even pay a lot for mining equipment join mining pools to increase profits and make their work more practical.
Mining Bitcoin Cash individually, especially with a personal computer or laptop, is not profitable today, and you have to pay more that what you make!
If you plan to enter the realm of Bitcoin Cash mining with a relatively large amount of capital, you need to focus on purchasing several powerful devices, providing the right place to maintain and operate them, and supplying electricity at an affordable cost.
Keep in mind that many of the Chinese miners that were among the first one to start mining in the world are now ending their work!
So my suggestion is to think a bit more about entering the mining world and investing in it, at least in the current situation.