It is pivotal to know the internal functions of this cryptocurrency, in order to understand how to mine Bitcoin cash. Bitcoins are not linked to any nation or economy. Instead, through the use of compound algorithms that operate on powerful central processing units, they are 100% decentralized and guided by math.
ascertaining its precision and the systemic circulation of additional currency are significant aspects that facilitate the prosperity of Bitcoin innovation. Mining fulfills both roles because, by accomplishing specific tasks, miners locate and obtain Bitcoins.
Bitcoin was once unfamiliar and unverified. It has become quite popular in mainstream media. By key retailers such as Dell, Zappos, and Home Depot, It is now acknowledged.
Many people are looking for solutions to inquiries about cryptocurrency including: how can you mine Bitcoin cash?
Mining Bitcoin Cash vs Bitcoin
You could probably be wondering which one is more profitable than the other. Here are some elements that can shed more light on this dilemma:
The procedure of mining– Bitcoin cash is quite similar to investing in Bitcoin; however, there are a few significant distinctions. For instance, block size restriction – for Bitcoin, it is only 1 MB, whereas for Bitcoin cash it is 8 MB.
Higher computing capacity will be needed by the larger blocks. In addition, for the purpose of mining, they will require more investment. Nonetheless, the miner collects more transaction fees.
Also Check: What is Bitcoin Cash?
Is mining Bitcoin Cash profitable?
In 2018, you will need to invest some money into specialized mining equipment first, in order to make significant profits on Bitcoin Cash mining.
But you can find out roughly how much your profits will add up to using this profitability calculator before you do so. You will need to find out your hash rate, which is the speed at which your computer and the equipment you’re planning to invest in can compute the output of a hash function, In order to use this calculator. The bigger it is, the more chances you will have of successfully mining a block.
How to start mining Bitcoin Cash
First off, to receive your future mining rewards, you will need a Bitcoin Cash wallet. It is recommended you choose a wallet that stores your private key on a device it’s installed on, For safety reasons.
Also, ensure to print out a copy and keep it in a secure location or backup a wallet.dat file to a separate device. You won’t be able to retrieve your funds without this file – they’ll be gone forever, in case your computer crashes or gets stolen from you. You can read more about Bitcoin Cash wallets in our dedicated guide. At this point, you’ll need to consider whether you want to join a mining pool or be mining on your own.
A group of Bitcoin Cash miners that combine their computing power in order to increase their chances of solving a puzzle is called a mining pool. In a pool, yall of your combined work will increase the pool’s chances of solving the bigger algorithm and receiving the reward and our mining rig will receive smaller and easier algorithms to solve. When a pool receives a reward, based on how much computing power they contributed, it is then being shared among the participants.
Mining Bitcoin Cash Starter Point
Before investing in mining it is important to establish how much you are willing to put in as well as the expected return on investment. You will need the following, for the successful mining of Bitcoin cash:
- A Bitcoin Cash Wallet
- Stable and reliable internet connection
- An ASIC mining rig
The tips below give a wider explanation of how to take off in this form of trade:
- To begin with, attain a Bitcoin Wallet. This will facilitate future mining rewards.
- Safety is crucial while mining; consequently, it is highly recommended to make a proper choice of a wallet that stores the personalized key on the device it is installed on.
- Also, ensure that the backup for the wallet.dat file is carried out to a different device or, a copy of the same can be printed and stored in a safe location.
- When this is done, decide if you want to join a mining pool or mine individually.
What is the mining process?
Bitcoin miners create a system that checks its accuracy when a block of transactions is initiated. to attain a compact sequence of numbers and patterns commonly referred to as a “hash”, a mathematical formula is applied when this block is taken. Through the hash of the previous block to ascertain its accuracy, every new block is acquired. A quick overview of the mining process is as follows:
- Bundling up of the transaction into a block
- Verification of the transaction as valid by miners
- Solving the mathematical problem
- Addition of the propagation and new block to the blockchain throughout the network once the solution is found
We should also note that miners work to verify many transactions. How is this possible? Every purchase is locked with a virtual lock in a box. To identify the key that unlocks the boxes, then the software is run. The box is accessed upon finding the key, and the transaction is certified, a process that earns the miner 12.5 Bitcoins.
Bitcoin Cash Mining Pools
For many people, a Bitcoin Cash mining pool is a way to ‘Pool’ their resources together to stand a better chance of winning the mining reward. It’s as if being in a ‘Tug-of-War’ game.
The side with 10,000 would always win, if one side of the rope had 10,000 people, and the other side had 5, then no matter how powerful the people were! They give everyone a chance to win a piece of the pie! This is why Bitcoin Cash mining pools are so great.
However, mining pools hold a lot of control and it is important to remember that. The pool has full control over its terms and conditions, even if you are sharing your hashing power. This means that they can reduce the number of rewards that are shared or change the membership fee.
Always conduct sufficient research before joining one, or choose a well-known mining pool like the one I have listed below, as there are a lot of mining pool scams out there that will never pay you any rewards.
Currently, the most successful and largest Bitcoin Cash mining pools are:
Hardware for Bitcoin Cash mining
These days, only if you invest in ASIC miners – special computers built strictly for the purpose of mining, mining can be profitable. You will need to consider the miner’s hash rate as well as its electricity consumption, besides the price. A comparative table of some of the best ASIC miners currently available is given below.
Software for Bitcoin Cash mining
The two most popular ones are CGminer and BFGminer are command-line programs even if there are many different programs out there that can be used for mining Bitcoin Cash.
You can use EasyMiner, which acts as a wrapper for CGminer or BFGminer software and can be used for both solo and pooled mining If a command-line interface is too complicated for you.
As it was mentioned before, it is recommended that you search for programs compatible with the miner that you own, as your choice of software will be influenced by your hardware. Moreover, chances are they will have their own dedicated software if you’re mining in a pool.