A Beginners Guide to Mining Bitcoin Cash
May 16, 2019
Every crypto enthusiast yearns at least once in their lifetime of trading cryptocurrencies to partake in a Cryptocurrency Exchange that involves mining Bitcoin Cash for their personal monetary gains.
Mining is basically a process of figuring out the solution for complex mathematical problems. In the crypto realm, miners are an integral asset as their objective is to sanction transactions as legitimate exchanges while at the same time also playing a huge role in allowing new tokens the go ahead for circulation.
Most miners are lucky to be rewarded with some serious accolades for being competent enough to mine a large block of crypto transactions. The current Bitcoin Cash network boasts of a generous reward that clocks in about 12.5 BCH for every block whereas some of them are also bestowed with certain special attributes like managing the price of every exchange fee that ever incurred in a particular block.
Deeming the Profitability of Bitcoin Cash
The first step before you start envisioning yourself banking in on Bitcoin cash mining is to splurge a few bucks on some exclusive mining equipment as well.
Currently, there are a lot of profitability calculators in the market that will showcase the cumulative cost of all the profits that may arise when one goes to buy the equipment. All the miner has to do to use these calculators is figure out the hash rate and analyze the computing compatibility of the hash function for the successful mining of a block.
It is important that you work with a profitability calculator that will find out the right hash rate algorithm for your computer and take the total cost of electricity into thought as well.
Drawing Out Comparisons between the Profitability of Bitcoin Cash Mining vs. Bitcoin Mining
Although Bitcoin Cash mining is much similar to Bitcoin mining, there are some clear notable differences between the two. The first one essentially has to be the block size limit of Bitcoin Cash that is 8 MB to be precise while on the contrary, the block size limit of Bitcoin is a mere 1 MB.
It is common knowledge that the bigger blocks will need high computing power, not to forget that they also have to consider the crazy investments involved in the mining processes. To top it all off, the bigger blocks also call the miner to gather slightly more transaction fees.
Right now, the value of Bitcoin Cash is priced at $395 whereas Bitcoin is priced at $7831.12 that denotes that there is a pretty remarkable difference between the two cryptocurrencies. Owing to this reason, more miners are enticed by the ability of the BCH network to manage the mining standards at a much lower level than the mining standard of Bitcoin - Exactly where EDAs come into the picture.
And although both the cryptocurrencies are a part of the same Blockchain, every block shares a reward value of approximately 12.5 tokens.
So, an EDA is launched as a result of automatic difficult rescaling that has transformed the difficult of Bitcoin Cash to rise upto 350% - However, this was the very reason that miners were more attracted to this development of Bitcoin Cash. The striking factor about this was that miners kept mining on a cash crunch only because they kept on believing in the underlying potential of Bitcoin Cash.
Kicking Off the Bitcoin Cash Mining Journey
Once you have decided to start mining Bitcoin Cash, you have to understand how one can possibly start it in the first place.
Every Bitcoin Cash miner first needs to have a Bitcoin Cash wallet where you will obtain all mining bounties - Remember to opt for a Bitcoin Cash wallet that will store your private key safely on the storage device.
Backup the Bitcoin Cash wallet in a wallet.dat file and store it on another device but if you do not wish to do that then you can always issue a copy and store that on a safe place as well. Why we suggest you this is because in case of a computer breakdown or let's assume your device is stolen then you will never be able to find your funds.
As far as the actual mining procedure goes, you are free to decide if you wish to mine on your own or become a part of an active mining pool.
The only thing that you really need to consider during mining is how much electric power usage goes down and how much electricity you require particularly. Do remember, more the electric power required, more expensive the procedure of carrying mining processes can become for you in the long haul.
Setting the Conclusion for Bitcoin Cash Mining
Although, Bitcoin Cash mining seems like a great crypto perspective especially after determining the wide adoption of Bitcoin Cash on multiple Cryptocurrency Exchange Platforms, it seems that Bitcoin Cash mining will enhance the overall crypto market scope for a lot of comparatively lesser used cryptocurrencies to come into light.