Bitcoin cash is the best alternative to mine instead of Bitcoin because popularity and blockchain network of both are the same. In this guide, I will tell you how to mine bitcoin cash.
Bitcoin Cash was introduced after a hard fork of Bitcoin network to increase block size which was earlier 1 MB block with Bitcoin.
Mining of Bitcoin cash is not easy as other altcoins but not that much complex as Bitcoin and that is why we can talk about how to mine Bitcoin Cash.
As Bitcoin cash is the solution of hard fork hence when actual hard fork happened in August 2017 every Bitcoin holder got the same amount of free Bitcoin cash.
Bitcoin cash got the most popular after a hard fork. Hence mining of Bitcoin cash is worth or not will discuss later in the guide.
Blocksize of Bitcoin cash is 8 times more than Bitcoin which cause it has the capacity to clear transactions 8 times more than Bitcoin.
This makes sense to grab bitcoin cash as much as you can and mining is one of the best ways to do so.
Hence will discuss all Bitcoin cash mining, how to mine Bitcoin cash and is Bitcoin Cash mining profitable?
What is Bitcoin Cash Mining?
Mining is the process of clearing transactions. Yes, whenever a transaction initiated in Bitcoin cash blockchain network it needs to be confirmed before got successful.
This confirmation is done by the miner. Yes, the miner is the person who solves the mathematical problem associated with each transaction.
Whenever a new transaction initiated in the Blockchain network, it is waiting to get confirm hence all the miners using certain hardware and software trying to generate hash code.
Whoever is able to generate that matching hash code will convey the same with other miners. If 51% of other miners confirm the validity of the hash code then block got confirmed.
In return, the first miner will get Bitcoin cash in reward along with all the transaction fees.
Now successfully confirmed block will be added to Bitcoin cash blockchain network registry and transferred Bitcoin cash will be delivered to receiver end.
The current Block size of Bitcoin cash is of 12.5 BCH means in every 10-minute block, 12.5 bitcoin cash will be added in the blockchain to be able to mine.
Bitcoin cash is based on proof of work (POW) network where mining of coin will depend on hash power you will be able to generate. More hash power means more chances to mine.
Due to the larger block size, mining difficulty for Bitcoin cash is easier than Bitcoin. Hence you would need less hash power to be able to mine Bitcoin cash as compared to Bitcoin.
The miner who would able to mine Bitcoin cash first will get the full block of 12.5 BCH plus all the transaction fees initiated in that time period.
The block size of Bitcoin cash is 8 times more than Bitcoin hence more transactions and more transaction fees will be as a reward.
Is Bitcoin Cash Mining Profitable?
It is a tricky question to answer for, the reason totally depends on the market conditions.
As crypto assets are still hanging in a bubble market where at a certain point price increase and another point it got a decrease.
So even, if you are able to mine Bitcoin cash, the profit will depend on market conditions.
The mining of Bitcoin cash will require the number of hardware and software which help you to generate hash power.
Generation of hash power will totally depend on hardware on which you are going to invest and as the complexity of solving puzzles is increased day by day cause requires more hash power.
Use of more hardware will increase the consumption of electricity, which may cross 30-40$ per day.
It varies from country to country if you are in a country like China where electricity is cheaper as compared to the USA.
Then mining setup in China will more beneficial than the USA. Here is a calculator which could help you to understand how much hash power you require to mine a specific amount of BCH.
Using the above calculator you can get an idea about the complexity of Bitcoin cash mining and how much hash power you need to make for a specific amount of Bitcoin cash mining.
Yes, the current price of Bitcoin cash is hanging around 150$ which is far less than Bitcoin, hence the more you will gain still the profit as compared to Bitcoin will be less.
Now you got an idea, is Bitcoin cash mining profitable or not? If you decided then this time is to learn about how to mine Bitcoin cash.
How to Mine Bitcoin Cash?
Mining of Bitcoin cash was not possible through CPU or GPU because of more complexity and high competition.
If you are planning to mine Altcoins then you can try with CPU or GPU but not for Bitcoin cash which requires ASICs.
Mining of Bitcoin cash is possible through below three ways.
- Solo Mining
- Pool Mining
- Cloud Mining
Let me share, a brief overview of ways of mining possibilities.
Solo Mining of Bitcoin Cash
Solo mining is a process where you set up your own mining rig and plan to mine own if you are able to mine than all rewards will be yours.
But it has more complexity in terms of winning mining coin reason is more competition. It will need more money to invest in hardware to compete with other miners.
Solo means obviously the mined coins will be yours including transaction fee but the question is will this easy to mine?
I must say no if you are a beginner and have just a small amount of money than you won’t able to mine.
Because big giant companies are trying to mine same coins using multiple mining rigs, they have very expensive miners set up to do that job.
If you try to set up own will require space to set up mining rig and what about electricity consumption charges.
As we discussed earlier it won’t guarantee you that how much profit you could make. So the solution is Mining Pool.
Yes, the best answer for how to mine Bitcoin cash for profitable earning is through Mining pool but how?
Pool Mining of Bitcoin Cash
Pool mining is a place where multiple miners share there hash power to mine coin. If able to mine than based on shared hash power profit will be divided among all the members.
More hash power, in result chances to mine, will be high and ultimately you will get profit in return with minimum to zero investment.
In Pool mining, everyone shares hash power, so profit will be divided among all based on shared hash power. So lower you contribute lower you get.
In some cases, mining pool shares only mined block at present it is 12.5 BCH among all participants and for rest transaction fees, mining pool won’t share with participants.
Hence below point to take care while the selection of mining pool.
- Size of the pool – Which refers to the number of active members with that pool.
- Transaction fee to withdraw your amount from the pool.
- Minimum withdrawal of BCH coin from active Mining wallet.
Here are a few suggestions listed below, which are among the top popular mining pool and suggested to join if you plan to start pool mining.
AntPool is a pool run by Bitmain technology limited. which support mining of other 10 coins and among the popular mining pool.
It allows you to trace mining through Android and Mac app you can check with their website.
Whatever coins you mine it will distribute block reward with all and keep transaction fees with them only.
It has deployed mining nodes to world different regions so you can check and connect with one with your nearby.
To learns more about AntPool check their help support guide here.
Other than that there are few other pools like.
Cloud Mining of Bitcoin Cash
It is a place where you can rent mining resources to mine for you where you pay first and a specific amount of mining power in terms of the hash rate will be allocated to you.
The more you invest the more hash power you reserve and you will free from resource management and electricity bills.
Using that calculator, check how much hash power you need to earn a specific amount of BCH and check pricing plan for cloud mining provider company.
Check HasFlare which is one of the most famous cloud mining providing company.
Make sure to compare the active mined coin price in the market because you reserver hash power for which you already paid.
In return what amount you gain will matter a lot else you could buy BCH and reserver for some duration of time.
I hope you got an idea for ways on how to mine Bitcoin cash? But mining of any coins requires the setup of hardware and software, let discuss same.
Mining Hardware and Software
As we learned earlier mining of bitcoin cash require ASIC which has more capacity to generate hash power and having the high problem-solving capacity.
Every hardware runs on software, so that is known as mining software which helps you to connect to specific blockchain network.
Hence first will discuss hardware and then software.
Hardware to Mine Bitcoin Cash
Earlier it was easy to mine using CPU and GPU but this time the complexity of network need more powerful systems and one of them is ASIC (Application specific integrated circuit).
Few of the ASICs are more powerful than others, so the better you chose the more you can mine. As bitcoin cash based on Proof of work (POW) network where mining hash power matters a lot.
Below are a few suggestions for hardware devices.
Most of them are part of Antminer and based on the hash rate the price will be varied.
Antminer is the product of China-based company Bitmain technology limited which is also having one of the largest mining pool of Bitcoin and Bitcoin cash.
Antminer S9 is one of the most powerful miners which has the max capacity to generate hash power of around 13 TH/s.
All Antminer are listed above which really depicts that based on the price you can get more powerful Miner.
If you really want to buy this mining device than check this place. Yes, it has a selling market for Antminer.
So, in summary, you can opt for Antminer S9/S7 or nearly equal Antminer R4. If you want to start solo mining.
But it may cost you electricity charges be careful about that. Now let’s discuss Software for bitcoin cash miner.
Software to Mine Bitcoin Cash
Ideally, while you purchase any mining device it is already suggested by them to install specific software.
As you have an operating system for operating the computer in such a way to run the mining device it also requires mining software.
You can specify hash power to generate and duration for which that miner works and Device will work based on those instructions or pre-setup.
Installation of software and setting up your mining rig will ask you multiple things and one of them is your Bitcoin cash wallet, so chose one of the best wallets.
Hence installation of software and hardware will set your ground to kick start mining.
My View on How to Mine Bitcoin Cash
Bitcoin cash is among the most popular cryptocurrency currently traded in an active market and mining of BCH will definitely help if you could figure out the cost of investment in it.
Bitcoin cash works on proof of work technology hence you would need to invest in ASIC hardware which is expensive in cost.
The powerful device for which you invest can cause more consumption of electricity so be careful about the overall expenses and in return rewards.
Until today the rewards totally depends on mega mining devices, if you have more hash power can get more mined coins.
But if in future it switches to Proof of stack (POS) network will cause more you stack more you can get.
Future of cryptocurrencies is uncertain and above all are my guidelines to invest and start generating profit.
Hence choice is your whether you want to start as a solo, pool mining or cloud mining.
If you found this mining more expensive then the suggestion to mine best Altcoins using CPU and GPU, which are easy to mine.
Even you can check our guide on how to mine Etehreum which the second most expensive cryptocurrency after Bitcoin and support CPU and GPU mining.
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