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How to mine Bitcoin Cash?

BCH

If you have a lot of faith in Bitcoin Cash and want to earn some more BCH, there is a way to achieve this through mining. Mining is a process…

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How to mine Bitcoin Cash?

If you have a lot of faith in Bitcoin Cash and want to earn some more BCH, there is a way to achieve this through mining. Mining is a process of solving complex mathematical problems. Miners are extremely important to any cryptocurrency community, as they not only confirm the legitimacy of transactions, but also bring new tokens into circulation. Miners receive large rewards for successfully mining a large number of transactions. On the Bitcoin Cash network, the reward is currently 12.5 BCH per block plus all transaction fees in that block.

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Is Bitcoin Cash mining profitable?

In 2018, in order to make a decent profit from Bitcoin Cash mining, you needed specialized mining equipment, for which you first had to spend a certain amount of money. Today – April 10, 2023 – this problem has become much worse, as the price of equipment, as well as electricity, has increased – and by several hundred percent! In addition, it is much more difficult to dig up any cryptocurrencies. For this reason, it is advisable to use crypto calculators, which will indicate whether it is worthwhile using a particular piece of equipment to dig crypto.

Bitcoin Cash vs Bitcoin – which is better to dig?

The process of mining Bitcoin Cash is similar to Bitcoin, but there are some important differences.

  • First, Bitcoin Cash has a larger block size limit than Bitcoin (8 MB versus 1 MB). Larger blocks require more computing power, which means more investment in mining. However, larger blocks contain more transaction fees that miners can charge.
  • Both cryptocurrencies use the same blockchain, so the reward for each block mined is the same – 12.5. However, Bitcoin is worth much more than Bitcoin Cash.
  • To attract miners to mine Bitcoin Cash, the network needs to maintain a much lower mining difficulty than Bitcoin, which has been achieved through EDA (Automatic Difficulty Adjustment). EDA helped attract many miners to return to Bitcoin Cash mining, but some miners dug at a loss because they only believed in BCH and stuck to that fork.

Currently, data shows that if someone mines Bitcoin Cash at a rate of about 1 trillion hashes per second (THash/s), they can expect a daily profit of $1.3526, while for Bitcoin that daily profit is about $1.2275. Note, however, that these figures do not take into account transaction fees. On average, Bitcoin users currently pay about $28 in transaction fees, while Bitcoin Cash transaction fees are very.

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How to start mining Bitcoin Cash?

So you should now know how much you need to invest in mining platforms and what your return should be. If you are still considering mining Bitcoin Cash, here are some tips for you to help you mine it:

Wallet and security

You will need a Bitcoin Cash wallet to receive future mining rewards. For security reasons, it is recommended that you choose a cryptocurrency wallet that stores private keys on your device. Also remember to back up the file on a separate device or keep a printed copy of the address in a safe place. If your computer crashes or is stolen, without this file you will not be able to recover your funds – they will be lost forever.

Digging alone or in mining pools?

You should decide whether you want to mine independently or join a mining pool.

A mining group is a team of Bitcoin Cash miners who pool their computing power to improve their chances of solving a puzzle. In such a group, your mining equipment will have easier tasks to solve, and all the joint work will increase your chances of winning rewards. When the group wins a prize, it will be divided among the participants, in proportion to their computational contribution.

In contrast, if you manage to complete a group of transactions yourself, you will win 12.5 Bitcoin Cash. The problem, however, is that without a powerful mining platform (which consumes a lot of electricity), you have no chance of mining a block. This is why the vast majority of independent miners choose to mine in groups. When choosing a mining group, you need to consider its size, the frequency of block mining, how payments are distributed, fees and statistics shared. To join, all you need to do is register on their site and create an account. To control and monitor your mining platform, you will need the right software on your computer. The choice depends on the operating system and the platform you have.

If you join a mining group, they usually have their own software, often with preconfigured wallet addresses. In this case, you simply plug in your hardware. As a participant in the group, you must enter your username, password and group address in the software. Once the setup is complete, you can start mining coins. If you are digging solo, the reward will go into your wallet after the block is mined. As a group participant, a portion of the rewards will be automatically calculated and added to your account. Just make sure you enter your wallet address in the right place during registration.

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Bitcoin Cash mining equipment

Currently, mining is only profitable with ASIC diggers – specialized computers created for mining purposes. In addition to the purchase cost, it is worth paying attention to the speed of the excavator and power consumption. Below is a comparison table of the most popular ASIC excavators available on the market:

Name Power consumption Mining speed Approximate cost
Antminer S9 1375 W ±7% 12.93 TH/s 2000 $
Antminer R4 845 W ±9% 8.6 TH/s 1000 $
Avalon 7 850-1000 W 6 TH/s 880 $
Antminer S7 1293 W 4.73 TH/s 599 $
Antminer S5 590 W 1,155 TH/s 199 $
Avalon 6 1100 W 3.5 TH/s 700 $
R1 Antrouter Irrelevant 5.5 GH/s 39 $

Bitcoin Cash digging programs

Bitcoin Cash mining can be done using a number of programs, but the two most popular are CGminer and BFGminer. They are based on a command-line interface. However, if you prefer a simpler solution, EasyMiner wraps around CGminer or BFGminer, allowing you to mine solo or in a group. The choice of software depends on the hardware you have, so it’s worth checking which are compatible with it. If you plan to mine in a group, they often have their own dedicated software.

The largest and most successful Bitcoin Cash mining groups are:

  • BTC.com
  • F2Pool
  • ViaBTC
  • Bitcoin.com
  • AntPool
  • BitClub
  • BTC.top

Cloud Mining, and Bitcoin Cash

If you don’t want to worry about hardware management, cloud mining may be an alternative. Cloud mining allows you to use the computing power of remote data centers. All you need to do is purchase a contract and have a computer for communication and an optional local Bitcoin Cash wallet. However, cloud mining comes with risks, including fraud, and lack of control over physical hardware. Popular cloud mining providers are Hashflare and Genesis Mining.

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Łukasz Michałek
Łukasz Michałek
Founder of the rapidly developing cryptocurrency channel "Biblia Kryptowalut" on YouTube. He also co-creates the Arena Trading group with Marek. Łukasz is fascinated and passionate about blockchain technology and cryptocurrencies, which constitute the central element of his activity in the cryptocurrency industry.
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