What is Bitcoin Cash (BCH)?

Factional struggles in the blockchain have led to hard forks, constantly pushing new projects to come out. Bitcoin Cash (BCH) was created by a group of developers, investors, entrepreneurs and miners who were dissatisfied with Bitcoin's development plans.

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Bitcoin Cash (BCH) was launched in August 2017. It is a peer-to-peer electronic cash system designed to improve blockchain scalability and reduce transaction fees. The project is also called "Bitcoin ABC" (Adjustable Blockchain). size limit).

Is mining Bitcoin Cash more profitable than mining Bitcoin?

The mining process for Bitcoin Cash is very similar to that of Bitcoin, but there are a few key differences. First, the Bitcoin Cash block size limit is 8MB, while the Bitcoin block size limit is 1MB. Of course, larger blocks require more computing power, which in turn requires more investment to mine. On the other hand, larger blocks do contain more transaction fees for miners to collect.

Since both cryptocurrencies share the same blockchain, the reward for each block mined is the same – 12.5 tokens. However, at the time of writing, Bitcoin is trading at $10,513.38, while Bitcoin Cash is at $1,584.54. This is a pretty staggering difference, so in order to attract miners the Bitcoin Cash network must make its mining difficulty significantly lower than that of Bitcoin, and this is where EDAs help tremendously.

In the case where the automatic difficulty adjustment makes Bitcoin Cash more difficult to mine, EDA is directly triggered, which attracts many miners to return to Bitcoin Cash. Interestingly, however, many of them are mining at a loss, possibly because miners only believe in Bitcoin Cash and insist on using the fork.

BitInfoCharts data shows that currently, on average, mining Bitcoin Cash at a speed of 1 trillion hashes per second (THash/s) will bring a daily profit of $1.3526. For Bitcoin, this figure is a daily profit of $1.2275. However, these figures do not take into account transaction fees. On average, Bitcoin users currently pay about $28 in transaction fees, while Bitcoin Cash fees are negligible.

How to start mining Bitcoin Cash?

So, you should now know how much money you need to invest in mining equipment and what your returns should be. If you are still thinking about trying Bitcoin Cash mining, here are some tips for you.

First, you will need a Bitcoin Cash wallet to receive future mining rewards. For security reasons, it is recommended that you choose a wallet that stores your private keys on the device on which it is installed.

Also, be sure to back up your wallet.dat file to a separate device or keep a printed copy in a safe place. In the unlikely event that your computer crashes or is stolen, you won't be able to get your funds back without this file - they'll be gone forever. You can read more about Bitcoin Cash wallets in our dedicated guide.

At this point, you need to consider whether you want to mine alone or join a mining pool.

A mining pool is a group of Bitcoin Cash miners who combine their computing power to increase their chances of solving puzzles. In a mining pool, your mining rig will get smaller, easier-to-solve algorithms, and all your combined work will increase the pool's chances of solving larger algorithms and earning rewards. When the mining pool receives a reward, it is shared among the participants based on the computing power they contributed.

On the other hand, if you successfully complete a series of transactions yourself, you will be rewarded with 12.5 Bitcoin Cash. But the thing is, unless you have a very powerful mining rig (which requires a lot of electricity to run), you have no chance of mining a block. Therefore, the vast majority of casual miners will choose to mine in a mining pool.

When choosing a mining pool, be sure to consider the size of the pool, how often they mine a block, what their payout structure is, how much they charge, and what statistics they provide. To join one of these mining pools, all you need to do is register on their website and create an account. Then you will need to add "workers". Your worker ID is required for each miner you run so your contributions can be tracked.

At this point, you're basically ready to connect your mining hardware to a power outlet, plug it into your computer, and run it.

However, in order to be able to control and monitor your mining rig, you need a mining software client running on your computer. The appropriate software will depend on your operating system and the actual mining equipment you have.

If you decide to join a mining pool, in most cases it will have its own software. Some of them are preconfigured, including wallet addresses. In this case, just plug it into an outlet.

If you are a mining pool user, you only need to enter your username, password and mining pool address into the software. After the configuration is complete, you can start mining coins. If you are mining alone, once a block is mined, the reward will appear in the connected wallet. If you are a mining pool user, a portion of your rewards will be automatically calculated and added to your account. Just make sure you enter your wallet address in the required field when registering for the pool.

Bitcoin Cash Mining Hardware

Today, mining is only profitable if you invest in ASIC miners – specialized computers built specifically for mining. In addition to price, you also need to consider the hash rate of the miner as well as the electricity consumption. Below is a comparison table of the best ASIC miners currently available.

Bitcoin Cash Mining Software

There are many different programs available for mining Bitcoin Cash, but the two most popular are CGminer and BFGminer, both of which are command line programs.

If the command line interface is too complex for you, you can use EasyMiner, which acts as a wrapper for CGminer or BFGminer software and can be used for both solo mining and pool mining.

As mentioned before, the software you choose will be affected by your hardware, so it is recommended that you search for a program that is compatible with your miner. Additionally, if you mine with a pool, they will most likely have their own dedicated software.

Bitcoin Cash Mining Pool

Currently, the largest and most successful Bitcoin Cash mining pools are:

BTC.com

F2Pool

ViaBTC

Bitcoin.com

AntPool

BitClub

BTC.top

Cloud Mining

If you want to invest in Bitcoin Cash mining but want to avoid the hassle of managing hardware, cloud mining is another option for you. Simply put, cloud mining requires the use of shared computing power running from remote data centers. It greatly simplifies the process because you don’t need to buy noisy, energy-hungry mining hardware.

In theory, you only need to purchase one contract, plus a computer for communication and an optional local Bitcoin Cash wallet.

However, there are certain risks associated with cloud mining that investors need to be wary of before paying for a contract. There are a lot of Bitcoin cloud mining scams popping up. Additionally, you won't have control over the actual physical hardware. In the end, you'll make less profit because the operator charges you a commission to cover their operating costs.

The most popular cloud mining service providers are Hashflare and Genesis Mining. CryptoCompare provides a comprehensive list of the entire cryptocurrency contract market, designed to help users understand whether a contract is a good deal.