Bitcoin Cash is a fork of Bitcoin except that it has a larger block size. For a miner, this can translate into more frequent rewards. Mining Bitcoin Cash involves solving complex mathematical problems to validate transactions and secure the network. In this article, we will explore the various aspects of mining Bitcoin Cash, including understanding the basics, choosing the right hardware and software, and maximizing profitability. By the end of this article, you will have a comprehensive understanding of how to mine Bitcoin Cash and optimize your mining operation.
- Understanding the Basics of Bitcoin Cash Mining
- How to Choose the Right Hardware for Bitcoin Cash Mining
- Bitcoin Cash Software Requirements
- Setting Up Your Bitcoin Cash Mining Rig: A Step-by-Step Guide
- About mining pools
- Cloud mining BCH
- Is it profitable to mine Bitcoin Cash?
- Key Differences between Bitcoin Cash Mining vs. Bitcoin mining
Understanding the Basics of Bitcoin Cash Mining
Before diving into the technical aspects of mining Bitcoin Cash, it’s important to understand the basics.
Bitcoin Cash mining serves two primary purposes:
- Securing the network and
- Validating transactions.
Miners use powerful computers to solve complex mathematical problems, known as hashing algorithms, that validate transactions and add them to the Bitcoin Cash blockchain.
Each block contains a set number of transactions and is added to the blockchain, creating an immutable record of all transactions.
Mining is a competitive process, with multiple miners attempting to solve the same problem simultaneously. The miner who successfully solves the mathematical problem first adds to new block ti the blockchain and receives a block reward and transaction fees in the form of BCH. This competitive nature of mining ensures that the network remains secure and transactions are verified in a decentralized manner.
In order to mine Bitcoin Cash effectively, miners require specialized hardware, mining software, and a stable internet connection.
Let’s take a closer look.
How to Choose the Right Hardware for Bitcoin Cash Mining
When it comes to Bitcoin Cash mining, having the right hardware is crucial for maximizing efficiency and profitability. The mining hardware you choose must be specially designed to solve the complex hashing algorithms required for mining Bitcoin Cash.
The most common type of mining hardware used for Bitcoin Cash mining is Application Specific Integrated Circuits (ASICs).
These devices are highly specialized for mining operations and offer significantly higher hashing power compared to conventional computer processors or graphics cards. ASIC miners are specifically designed to solve the hashing algorithm used in Bitcoin Cash mining
The other alternative is to use a CPU or GPU but these are way less efficient. In a crowded market of miners, you will only be able to compete by using ASIC miners as they have more computational power.
What you need to look for in an ASIC miner to mine BCH efficiently
When selecting ASIC miners, it’s essential to consider factors such as hash rate, power consumption, and cost.
Higher hash rates indicate greater mining power and the ability to solve more problems in a given timeframe. However, higher hash rates usually come with increased power consumption, which can impact profitability. Therefore, striking a balance between hash rate and power consumption is crucial.
Another factor to consider is the cost of the ASIC miners. These devices vary in price, and it’s important to calculate the return on investment (ROI) based on the hash rate and power consumption. Consider factors such as the current Bitcoin Cash price, mining difficulty, and electricity costs to determine the approximate payback period.
ASICs generate a significant amount of heat during the mining process, and proper cooling is necessary to prevent overheating and potential damage to the hardware. Investing in a reliable cooling system, such as fans or liquid cooling, can help maintain optimal operating temperatures and prolong the lifespan of the mining equipment.
Let’s take at some of the top ASIC miners you can use to mine BCH
Best Mining Hardware to Mine BCH
#1. Antminer V9
One of the most powerful devices for mining BCH the Antiminer V9 is a good miner to get started with. Like any miner, it is noisy so you will be better off keeping it in the garage or far from where you sleep. However, you will need access to cheap electricity to make the economics of it work.
- Bitcoin Mining Hash Rate: 4.0TH/s
- Power Consumption: 1027W
Antminer is available on Amazon.
#2. Bitmain Antminer S19 Hydro 158T
If you are looking for extreme power then the Bitmain Antminer is awesome. This miner uses a water coolant instead of a fan which means it is a quieter through heavier (15Kg) machine.
- Bitcoin Mining Hash Rate: 158Th/s
- Power Consumption: 5452W
You can find the Bitmain Antminer S19 Hydro on Minershop.
#3. Avalon A1166pro 72T ASIC Miner
A very popular miner that you can easily pick up on eBay. It’s easy to maintain and has an inbuilt AI-chip.
- Power consumption: 3400 Watt
- Hash rate: 72Th/s
#4. Halong Mining DragonMint 16T
The Halong Mining Draginmint is a pretty decent. This miner weighs 6kg and you have to buy the power supply separately.
- Power consumption: 1480 Watt
- Hash rate: 16Th/s
#5. Microbt Whatsminer M 30 S++
Whatsminer is also a pretty popular choice amongst BCH miners. With considerable hashing power, this machine offers good value for the money you pay.
- Power consumption: 3224 Watt
- Hash rate: 104Th/s
Bitcoin Cash Software Requirements
There are several mining software options available in the market, each with its own unique features and benefits.
CGMiner is a powerful and flexible mining software that supports a wide range of mining hardware. It offers advanced features such as fan speed control, remote interface capabilities, and even the ability to mine multiple cryptocurrencies simultaneously.
BFGMiner is designed specifically for ASIC mining hardware and offers a range of features tailored to optimize performance. It supports multiple mining algorithms, including SHA-256, which is the algorithm used by Bitcoin Cash. BFGMiner also provides detailed statistics and monitoring tools, allowing miners to track their mining progress and make informed decisions.
For those looking for user-friendly mining software, EasyMiner is worth considering. EasyMiner is a GUI-based mining software that simplifies the mining process for beginners. It offers a straightforward interface and provides features such as automatic detection of mining hardware, built-in mining pool support, and real-time monitoring of mining performance.
Setting Up Your Bitcoin Cash Mining Rig: A Step-by-Step Guide
In order to start mining Bitcoin Cash, you’ll need to set up a mining rig. This rig consists of mining hardware, mining software, a stable internet connection, and a Bitcoin Cash wallet to store your earnings.
Step 1: Choose and purchase your mining hardware.
As mentioned earlier, ASIC miners are the most common hardware used for Bitcoin Cash mining. Research different models, consider factors such as hash rate, power consumption, and price, and purchase the hardware that best suits your requirements and budget.
Step 2: Download and install the mining software.
Step 3: Connect your mining hardware to your computer or mining rig.
Ensure that all connections are secure and that your hardware is receiving adequate power and cooling.
Step 4: Configure your mining software.
Depending on the software you choose, you may need to specify certain settings such as the Bitcoin Cash mining pool you wish to join, your wallet address, and other parameters.
Step 5: Monitor and optimize your mining operation.
Regularly check your mining progress, hash rates, and earnings. Adjust your mining settings, hardware configuration, or mining pool if needed to maximize profitability. Once you collect a decent amount of BCH coins in your wallet you can sell it on a cryptocurrency exchange to recoup some of your running cost or initial investment.
In order to check whether it makes sense to mine BCH in the first place you need to use a Bitcoin Cash mining calculator.
Bitcoin Cash Mining Calculators
Just input the hash rate of your machine and the cost of electricity. I usually input 80% of the machine’s peak hash rate to get a more realistic estimate. You can then calculate how long it will take for you to cover the cost of your investment in the mining rig. You also need to consider that the price of BCH might change. If it goes higher you may make money earlier but if it drops it could mean you stay in the red for longer.
About mining pools
Join a mining pool or mine solo. Mining pools are groups of miners who combine their resources to mine more effectively and distribute the rewards among pool members. Joining a BCH mining pool can increase your chances of earning a consistent income. However, if you prefer to mine solo, keep in mind that the frequency of earning rewards may be lower. The benefit of mining solo is that you don’t have to pay a pool fee. To be frank, unless you own a massive crypto farm with multiple rigs solo mining does not make sense. Otherwise, you may end up paying expensive electricity bills for a long time before you ever manage to solve the cryptographic puzzle and get rewarded.
Best mining pools for bitcoin cash
Below are the most popular BCH mining pools by hash rate based on Miningpoolstats.stream.
- SBIcrypto.com: highest hash rate owning 23% of the network hash rate.
Cloud mining BCH
If you don’t want to manage and maintain a miner in your home you can opt for what is called cloud mining.
With cloud mining, you buy the mining machine yourself but you have it delivered to a hosting facility where they provide you with (usually cheap) electricity and maintenance support so you don’t need to deal with the mining setup.
Is it profitable to mine Bitcoin Cash?
At the time of writing no, it is not profitable. Using the Bitmain Antminer Hashrate and power consumption.
I input the assumptions into a calculator and found that at the current price of BCH, I would be losing about $20 per day if I were to mine BCH.
The key metric affecting this calculation is the cost of electricity.
In the US the average cost of electricity is about 23 cents / kWh.
I have also assumed a pool fee of 2% which is realistic.
You would need to lower the cost of electricity to less than 7 cents per kWh in order to start making a profit at current BCH prices.
Key Differences between Bitcoin Cash Mining vs. Bitcoin mining
As a hard fork of Bitcoin, Bitcoin Cash inherited the same mining algorithm as Bitcoin, allowing miners to use their existing infrastructure to mine Bitcoin Cash.
Both BCH and BTC use the SHA-256 algorithm. However, Bitcoin Cash has lower fees and faster transaction times compared to its predecessor Bitcoin, making it an attractive option for miners and users alike.
Bitcoin Cash increased the block size limit from 1MB to 8MB, allowing for more transactions to be included in each block.
This scalability improvement reduces congestion and transaction delays, making mining more efficient and profitable.
For more on the similarities and differences between Bitcoin and Bitcoin Cash check out my post below
Bitcoin and Bitcoin Cash are two separate cryptocurrencies that share some similarities but also have several key differences. In this article, I will provide a comprehensive overview of both cryptocurrencies, exploring the technology, adoption rates, and approaches. By the end, you will have a comprehensive understanding of the similarities and differences between Bitcoin and Bitcoin Cash. Read more.
More from my how-to-mine series
- How to Mine Zcash
- How to Mine Bitcoin Gold
- How to Mine TRON Cryptocurrency
- How to Mine Ethereum Classic (ETC)
- How to Mine Litecoin
- How to Mine Chainlink (LINK)
- Bytecoin Mining: Best Guide on How to Mine BCN
- How to Mine Monero
Mining Altcoins sounds like a good way to earn passive income without needing to make the massive upfront investment that you need for Bitcoin mining. But where do you start and how do you go about it? In this comprehensive guide, I will walk you through all you need to know about how to mine altcoins and the best practices you need to follow. I will tell you about how to choose the right mining equipment, what you need to know about mining software and wallets, and how to select the most profitable altcoins to mine. Additionally, we’ll explore the benefits of joining mining pools, optimizing mining operations, and managing costs effectively. Read more.
How much does it cost to mine Bitcoin cash?
To mine Bitcoin Cash you will need to buy an ASIC miner that will set you back anywhere between $1200-$2300 depending on the miner that you buy. You will also need to account for variable costs such as electricity, rent and pools fees if you decide to pool your computational power with others.
Can you mine Bitcoin cash with ASIC?
Yes Bitcoin Cash can only be mined with an ASIC. You buy the same types of ASIC and use the same software that you use with Bitcoin.
What algorithm does Bitcoin Cash use?
Bitcoin Cash uses the SHA-256 algorithm which is the same algorithm that Bitcoin uses.
How many Bitcoin Cash are there?
There are 19,5 million BCH in circulation currently. Similar to Bitcoin, Bitcoin Cash has a maximum supply of 21 million BCH.