As a result of the scalability issue with Bitcoin (BTC), some hard forks were developed. If you only know of Bitcoin Cash (BCH) as the hard fork, there are 29 more. Yes, that’s a lot. Though, BCH is unique. Despite so many hard forks, not one of them matches BTC. As a matter of fact, no altcoin does. Apart from investing in cryptocurrency, mining is another way you can make a fortune from virtual currency.
Yes, that’s indisputable, only if your mining equipment is efficient enough.
What Is Mining?
Simply put, mining is a process of solving complex mathematical puzzles in the crypto-sphere. To achieve this task, miners use brute force computation. In the end, more blocks of transactions are added to the existing blockchain. However, there may be little difference as you move from one coin to another.
Introducing Bitcoin Cash
Developed in August 2017, BCH is one of the hard forks of BTC. Recently, the developers of BCH increased its block size. The reason is to increase the efficiency and number of transactions. Each successful mining of BCH results in 12.5 BCH, but not without the transaction fees.
Requirements For BCH Mining
- First of all, mining BCH requires hardware devices. Therefore, every miner must calculate their profit and loss. Guess what, there is a profitability calculator specially designed for this purpose. So, just get yourself one in order to be able to determine your mining profitability. In calculating your profitability, don’t fail to capture the total cost of power and equipment.
- While the block size of BTC is 1MB, the block size of BCH is 8 times larger. Again, remember that this process consumes a lot of energy.
- Next line of action is to get a BCH wallet. Yes, for storing your profits. It is advised you get a hardware or paper wallet instead of a web-based wallet. Do you know why? The reason is that the former is far more secure.
- You are making progress. Bravo! At this juncture, you will have to make a decision. Should you either mine alone or join a BCH mining pool? Keep in mind, however, that with the latter the profits are shared. Indeed, every member has a share. However, the chances of making it are higher when you pool your resources with other miners.
- If you decide to go solo, you will spend more, obviously.
- The whole process assumes PoW (Proof of Work). Therefore, Application Specific Integrated Circuits are deployed.
- To join a mining pool, visit any of the following sites: F2Pool, Bitcoin[dot]com, ViaBTC, AntPool, BTC.top, BitClub, etc.
We hope you found this helpful. So, get busy studying and good luck!
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