Similar to Bitcoin, a block of transactions is confirmed by the Bitcoin Cash mining block every 10 minutes. Before a block can be verified, all the miners on the Bitcoin Cash network need to try to fix a cryptographic puzzle. This puzzle is so tight that no human mind could resolve it. Instead, it requires a lot of processing power to solve it.
Every miner on the Bitcoin Cash network is contending to be the very first to resolve the puzzle! This is because whoever solves it initially, gets the mining benefit. The current reward for effectively mining a block is 12.5 BCH, which will remain in place until April 2020. After that, the bonus will be halved to 6.25 BCH.
Is it profitable to mine Bitcoin Cash?
How active you are at mining will depend on your devices. You should spend as money much as possible to get the most useful computer you can find on the market. Otherwise, you will discover that it’s almost impossible to win the mining competition against other competitors. You need to keep in mind that every miner on the blockchain is trying to resolve the very same puzzle. This suggests that even if you are not successful in winning the mining reward, you will still utilize great deals of electrical power in your attempt! One final thing that you need to think about is the real market price of Bitcoin Cash As you are paid in BCH, the higher the rate, the more profitable it is! You might be making a loss if the rate of BCH falls too low. This all depends on your objectives and whether you think in Bitcoin Cash as a long-term investment also.
What hardware do you need to mine Bitcoin Cash?
At present, the only hardware devices that are going to offer you an opportunity to mine Bitcoin Cash is something called an ASIC (Application-specific incorporated circuit). There are lots of different variations, with some being much better than others. There is no point in thinking about anything other than an ASIC, as you will have no opportunity of ever winning the mining reward!
What software do you need to mine Bitcoin Cash?
You will need to download some software to accompany it as soon as you have acquired your ASIC device. In most cases, the required software application will be included with the item. It is not suggested to utilize software application besides the one included with your item. There are different third-party mining programs offered to download. However, these are just appropriate for GPU or CPU mining. If you have read our guide up to this point, you will know that neither of these devices suitable for Bitcoin Cash mining, as you will need to utilize an ASIC. When you install your software application, there are various things that you can configure. First of all, you will need to enter your Bitcoin Cash wallet address. This is very important as this is the address that your mining benefits will be sent to.
What are Bitcoin Cash mining pools?
Mining pools hold a great deal of control. Although you are sharing your hashing power, the lake has complete control over their conditions and terms. This implies that they can change the membership fee or minimize the number of benefits that are shared. There are a lot of mining pool rip-offs out there which will never pay you any benefits, so always carry out adequate research before joining one, or choose a public mining pool like the one I have noted below.