Greetings, cryptocurrency enthusiast! Today’s guide will go over Bitcoin Cash mining. So, if you want to make money mining Bitcoin Cash, you’ve come to the prime spot! But, before we begin, did you realize that Bitcoin Cash miners can confirm 8 times as many transactions as Bitcoin miners? One of the primary objectives for the creation of Bitcoin Cash was to allow consumers to pay tiny transaction fees when transmitting payments.
Anyway, in this Bitcoin Cash mining guide, I’ll explain why the network requires miners, followed by a discussion of whether it’s lucrative.
Once you’ve grasped the fundamentals, I’ll tell you what you need to do to get started, including the hardware and software. Finally, I’ll go through the benefits and drawbacks of joining a Bitcoin Cash mining pool (don’t worry if you don’t know what that is yet), since this may be the best option for you.
So, what are you holding out for? Let’s begin by learning about Bitcoin Cash mining!
What is Bitcoin Cash Mining?
Miners, like most other blockchain-based cryptocurrency initiatives, must verify and confirm transactions. Anyone on the planet may become a Bitcoin Cash miner by obtaining the gear and downloading the software.
Every 10 minutes, the Bitcoin Cash mining community confirms a block of transactions, much like Bitcoin. Before a block verification, all Bitcoin Cash network miners must attempt to solve a cryptographic problem. This challenge is so tough that no person could solve it; instead, it takes a significant amount of computing power.
Every miner on the Bitcoin Cash network is racing to solve the problem first! This is because whoever solves it first receives the mining reward. The current block reward is 12.5 BCH, and it will stay in effect until April 2022. Following that, it will cut the payout in half to 6.25 BCH.
Besides the block reward, the successful miner will get the transaction fees paid by each Bitcoin Cash user when they moved to cash. It is also worth noting that the individual (or group) with the most powerful mining hardware has the highest chance of winning the mining incentive.
In the realm of Bitcoin Cash mining, a strong mining gear will always have a better chance of obtaining the reward than a simple CPU. I’ll go into more depth about this later.
So, now that you understand the premise of Bitcoin Cash mining, I’ll tell you if it’s lucrative.
Is Bitcoin Cash Mining Lucrative?
Anyone around the globe can seek to profit from Bitcoin Cash mining. However, you must consider some significant financial obligations.
To begin, you will need to purchase Bitcoin Cash mining gear.
Your mining success will be determined by the equipment you use. As a result, spend as much money as possible to buy the most powerful equipment workable. Otherwise, winning the mining prize versus other rivals will be very difficult.
Another factor to consider is the quantity of power necessary to mine. Bitcoin Cash mining, like Bitcoin mining, consumes a huge amount of electricity. This is because of the complexity of the cryptographic challenge that miners must solve. The only way to solve it is to use a lot of computer power, which costs a lot of electricity.
Remember that every miner on the blockchain is working on the same challenge. This implies that even if you do not get the mining prize, you will burn a lot of power in your try.
You must also consider where you live in the world, as power rates vary depending on the nation in which you live. For example, China has one of the lowest power costs in the world, which is why the bulk of large mining operations headquarters. Mining Bitcoin Cash in South Korea, on the other hand, is the least lucrative because of the high cost of power!
One last item to examine is the current market value of Bitcoin Cash. Because you get paid in BCH, the higher the price, the larger the profit! If the price of BCH goes too low, you may incur a loss. This entirely depends on your objectives and if you believe in Bitcoin Cash as a long-term investment.
Essentially, if you want a straight answer on whether Bitcoin Cash mining is viable, it all comes down to the reasons listed above.
There is a fantastic website that allows you to determine if you will earn any profit to help you figure all of this out for yourself. However, before you do so, you should probably read the rest of this article to ensure that you have all the information.
So, now that you know what to think about, I’ll teach you how to get started by talking about hardware.
Also read: What is SegWit and How Does It Work?
Bitcoin Cash Mining Hardware
Before you can even consider mining Bitcoin Cash, you must first get some hardware. It was easy to generate a lot of money in the early days of cryptocurrency mining simply by employing a CPU or GPU device. These devices are inexpensive, and they provided everyone with an equal opportunity to earn the mining prize.
However, mining technology has matured to where there are now dedicated hardware devices designed particularly for mining. Those with the most powerful equipment have the highest chance of succeeding. Let me explain shortly why this is the case.
Every gadget has a limited quantity of ‘Hashing Power.’ Consider it as an automobile. An automobile can only generate a particular level of speed depending on the model. Most of the time, the more costly the automobile, the more powerful it is!
This is significant because when miners try to solve the problem, they try billions of different combinations until they find the right one. The more a hardware device hashing power, the more combinations it can try per second!
At the moment, we know the only hardware device that will allow you to mine Bitcoin Cash as an ASIC. There are several varieties, some of which are superior to others. There is no use in thinking about anything other than an ASIC because you will never receive the mining reward!
Anyway, now that you understand the significance of hashing power, let’s have a look at some of the greatest Bitcoin Cash mining equipment available!
DragonMint 16T Halong Mining
The DragonMint gadget, which was unveiled in March 2018, is the world’s most powerful ASIC device for Bitcoin Cash mining! Halong Mining is the firm behind it, and the team claims to have committed more than $30 million to develop the product to where it is now.
The DragonMint 16T gadget, as the name says, has a maximum hashing power of 16 TH/second! This is 2 TH/Second quicker than its closest competitor, the Antminer S9.
As fantastic as the item is, it costs $2,729! In addition, the manufacturer suggests you gain a bespoke power supply for an extra $115.
This gadget requires a power source ranging from 220 to 240 volts. Every nation has its own set of rules, so you should familiarize yourself with them beforehand. In the United States, for example, the norm is 110V, which means you’d need to hire an electrician or buy a converter.
As a result, the DragonMint may not be suited for the common miner trying to supplement their income. It’s for far more serious miners and companies.
If you wish to buy the DragonMint 16T or find out more information, head to the official website by clicking here.
The Antminer S9 is the world’s second most powerful Bitcoin Cash mining equipment! Bitmain, a Chinese corporation, produces the gadget. Some believe Bitmain has too much sway over the bitcoin sector. This is because they not only offer the most mining gear but are also one of the top mining pools in the Bitcoin and Bitcoin Cash industries.
The Antminer S9 can hash at a maximum rate of 14 TH/Second. The device is an improvement over the S7, which had a maximum hashing rate of just 4.73 TH/Second. S9 is also noticeably quieter than the S7, which sounded like a factory assembly line.
The Antminer S9, like the DragonMint ASIC, is, however, pricey. It will cost you around $3,000 on average to purchase. You will also require an extra power source, which will cost roughly $170.
Even though it is less powerful, the Antminer S9 is more costly than the DragonMint at the time of writing. We expect both prices to fall short since Bitmain now has competitors — something it did not have previously.
If you want to gain the Antminer S9 or find out more information, head to the official website!
Other than the two devices mentioned above, I see no purpose in recommending anything else for solo mining. The Antminer R4, which has a maximum hashing power of 8.6 TS/second and costs roughly $1000, is the closest device in terms of power.
If you intend to join a Bitcoin Cash mining pool, though, you may get a far less powerful unit. This is because your portion of the mining payout is determined by the amount of hashing power you give! So, if this seems more appealing to you, have a look at my recommendation below!
Antminer S7 Mining Rig
Before the Antminer S9, the Antminer S7 was the greatest ASIC hardware device! Bitmain likewise made it and has a maximum hashing rate of 4.73 TH/Second.
Despite being significantly slower than the S9, it will let you earn Bitcoin Cash if you join a Bitcoin Cash mining pool. At the time of writing, we can buy an S7 for under $200. It is a very reliable and tested piece of hardware that was once the industry’s most popular.
There are two things you should think about before purchasing the Antminer S7. Foremost, do not use it to solo mine Bitcoin Cash! You just cannot compete with more powerful models. Second, the S7 is loud, so if you plan on using it late at night, expect complaints from your neighbors.
So, now that you’re aware of the hardware requirements, the following section of my Bitcoin Cash mining tutorial will go through the software needs.
Bitcoin Cash Mining Software
Software is equally vital to hardware on your desktop computer or laptop device. After purchasing your ASIC device, you will need to gain some software to go with it. In most situations, however, we will get the software with the product.
We do not suggest that you use software that is not included with your product. Third-party mining programs are available for download, however, they are only appropriate for GPU or CPU mining.
We recommend the following mining software:
When you install your software package, you have several options for configuring it. You must first input your Bitcoin Cash wallet address. This is significant since it is the address to which you will receive your mining rewards.
You must also tell the program how much power you want the device to produce. I strongly advised that you read the handbook contained with your hardware equipment before making any changes!
Finally, you will need to tell the software how many hours you want it to mine for. If you buy a silent device like the Antminer S9, it makes sense to operate it 24 hours a day to optimize your revenues.
However, if you are using a loud device, such as the Antminer S7, it is advisable to use it just during the day (depending on where your hardware is located).
So, now that you’re aware of the prerequisites for downloading software, the last section of the course will go over Bitcoin Cash mining pools.
I hope you found my Bitcoin Cash mining instructions useful. If you read it from beginning to end, you should have a solid notion of whether it suited Bitcoin Cash mining for you.
The ability of mining major cryptocurrencies such as Bitcoin and Bitcoin Cash using simple CPU or GPU hardware is not possible anymore. It was a fair system that enabled everybody to take part back then. However, your only genuine option currently is to either invest a considerable amount of money on the finest ASIC hardware or join a mining pool.
Who knows, if the Bitcoin community ever updates the code, they might prevent ASIC devices from joining the network one day. Until then, the potential to earn the mining prize is in the hands of a few large mining farms.
Also read: Bitcoin Cash Price Prediction 2021 to 2030