Bitcoin Cash (BCH) is a popular cryptocurrency created in 2017 as a fork of the world’s largest cryptocurrency, Bitcoin. It was created by a group of developers who understood Bitcoin’s scalability problem. The problem was that after Bitcoin gained fame, it became quite expensive and unreliable for peer-to-peer fund transfers. Although BCH was created as a spin-off, it became a completely different blockchain, but it still has similarities with Bitcoin, like its limited supply of 21 million coins.
BCH uses the SHA256 algorithm, a Proof-of-Work (PoW) consensus, the same as Bitcoin. Bitcoin Cash aims to increase the capacity of peer-to-peer transactions. Is it profitable to mine Bitcoin cash? What does it really takes to mine 1 BCH. Is it really worth it? Learn all this in this descriptive guide on how to mine Bitcoin Cash in just a few easy steps!
Is Bitcoin Cash (BCH) Mining Profitable?
Mining is an expensive and highly technical process. Before getting your shovel to mine BCH, you need to calculate if the cost of mining operations is lower than the earnings or rewards you will get from mining BCH. It is necessary to make a cost-effective setup, so you need to calculate the cost of equipment, electricity, the area of the setup, and even the workforce required for the operation. You can use BCH profitability calculators by simply putting a value on the variables, and you will get the hash rate to determine the expected investment returns (ROI). You also have to consider halving the price of Bitcoin cash. It first happened in April 2020 when miners got a reward of 12.BCH per mined block. The current reward is 6.25; the next halving will cut it to 3.125, expected to occur in March 2024.
How To Mine Bitcoin Cash (BCH): Our Top 5 Recommendations
Choose a Wallet
Firstly, you have to choose a crypto wallet to store your Bitcoin cash. A wallet is a secure digital vault and a tool for managing your BCH. A general criterion for a good crypto wallet is its security, reputation, access to private keys, backup features, interface, and fee customization. Many wallets support Bitcoin cash; you can choose between cold or hot storage at your convenience. If you want a wallet specifically for mining BCH without any complications, you should use Bitcoin Cash’s official wallet. You can alternatively select other wallets, such as:
- Ledger Nano S
- BTC.com
- Coinomi
- Trezor
- Electron Cash
- Cash Address
- KeepKey
Select A Mining Software
Now you have to install mining software to control the hardware parameters. It is important to select software that is compatible with your hardware. Usually, the software is included with the hardware you have brought, and it is recommended to use the suggested software. You need to check the compatibility, features, and interface of other software. Here are some recommendations for BCH mining software:
- CCG mining,
- NiceHash,
- Hashflare,
- MinerGate,
- CGminer, and
- BFGMiner.
Get All The Required Mining Hardware
Since Bitcoin Cash is built with the SHA256 algorithm, a Proof-of-Work (PoW) consensus to mine BCH, you will need ASIC (application-specific integrated circuit) specialized mining hardware. To get the rewards, your hardware needs to solve mathematical problems faster than others; for this, the hashing power of the ASIC should be higher. You can use a CPU or GPU to mine Bitcoin cash, but the chances of getting rewards are low as the hashing power is relatively lower on the CPU and GPU. Some powerful ASICs are the Halong Mining DragonMint 16T, Antminer S9, and Bitmain AntMiner S19 Pro.
Configure the Hardware and Software
Now you have to configure the settings of the software. Connect the hardware to the power supply and the internet. Follow the steps to make a profile in your mining software and connect to the IP address of the hardware. You must also include information about the mining pool, like the pool URL, username, and password. Through the software, you need to control how much power the hardware should generate.
Join A Mining Pool
Bitcoin cash mining is very competitive. The miner who solves the math problem and verifies the transactions gets rewarded first. You can join mining pools where miners combine resources and distribute the rewards. There is a general fee of 1% or 2%. Here you have a better chance of getting a bonus, whereas the probability is low in solo mining.
Some popular BCH mining pools are as follows:
- BTC.com,
- ViaBtc,
- Bitcoin.com,
- Poolin
- Antpool.
Also read: Check Bitcoin (BCH) Prices Live
Popular video guides on Mining Alephium (ALPH)
How Does BCH Mining Work?
Bitcoin cash is based on Proof-of-Work (PoW) consensus. When there is a transfer of BCH between wallet addresses, the BCH blockchain technology requires miners to solve complex mathematical problems and verify each transaction request. For this miner, collect the fees which are in BCH. It is essential for the system’s security and the ledger’s maintenance.
Specialized computers are needed to solve these problems/puzzles and to earn rewards for the Bitcoin Cash ecosystem. The current reward for successfully mining a single block is 6.25 BCH. The BCH network constantly changes the difficulty to ensure the competition is tough.
How Long Does It Take To Mine One BCH?
Determining the time taken to mine one BCH depends on various factors like the hash rate of your hardware, the difficulty level of mining, and competition in the network. The higher the hash rate, the faster you will get closer to the rewards. ASICS power is an essential factor in the race to mine BCH. The current global Bitcoin Cash network hash rate is 1.41 EH/s at a block height of 790,862.
How Difficult Is It To Mine Bitcoin Cash(BCH)?
The difficulty level of mining BCH is relatively higher than other altcoins. The Bitcoin cash ecosystem constantly changes the mining difficulty rate to keep the competition firm. The current difficulty level of Bitcoin Cash is 193.61 G at block height 790,862 with a hash rate of 1.41 EH/s. The level mainly depends on the number of miners involved and the hash rate power of the miners.
What All Do You Need To Mine Bitcoin Cash (BCH)?
1. Hardware:
To mine Bitcoin Cash, which uses Proof-of-Work consensus, you will need an ASIC to keep up with the competition and solve the puzzles first. Since the mining process is advanced, you will need a powerful ASIC with a higher hash rate. Some powerful ASICs are the Halong Mining DragonMint 16T, Antminer S9, and Bitmain AntMiner S19 Pro.
2. Software:
The mining software is often included with the ASIC hardware. The software must have all the features necessary to manage and monitor your mining process. Configuring the optimum settings for your hardware to mine efficiently is essential. Some recommendations for BCH mining software: are CCG mining, Nicehash, Hashflare, MinerGate, CGminer, and BFGMiner.
Top Wallets To Store Your Bitcoin Cash (BCH)
Some of the top wallets where you can store Bitcoin Cash (BCH) are:
- Ledger Nano S
- BTC.com
- Coinomi
- Trezor
- Electron Cash
- Cash Address
- KeepKey
Frequently Asked Questions
Why was Bitcoin Cash founded?
Bitcoin Cash was created with the aim of addressing the issue of Bitcoin’s transactional capacity. During the initial stages, Bitcoin functioned without any hiccups, with low fees and rapid transactions. However, as the number of users grew, the fees escalated, and the capacity of transactions demanded significant improvement. In response to this challenge, Bitcoin Cash came into existence, promising to offer users a more efficient and streamlined transactional experience.
Where do I buy Bitcoin Cash (BCH)?
Bitcoin Cash BCH is a popular cryptocurrency with a large user base. You can buy or trade BCH on cryptocurrency exchanges like
- Binance,
- Coinbase,
- OKX,
- Zebpay
- Gate.
- Unocoin
- bitxoxo
- Coin Secure
BCH, founded in 2017, now has a market capitalization of ₹189.2B or USD 2.3B.
What is the major difference between Bitcoin Cash and Bitcoin?
The significant difference between Bitcoin Cash and Bitcoin is the low fees and faster transaction speed. The block size of Bitcoin Cash is larger than that of Bitcoin, which is 32MB, whereas Bitcoin has 1 MB. The Bitcoin Cash network can process more than 190 transactions per second.
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