If you are a Bitcoin Cash (BCH) supporter, there is an easy way to both support its ecosystem and earn a bit of profit, which is to mine Bitcoin Cash.
As you probably already know, mining is a process of solving complex algorithms with computers to verify transactions. This is what makes mining the most important aspect of every cryptocurrency, and miners themselves are invaluable members of that coin community. They not only make transactions possible, but also increase the circulating supply of coins.
Is Bitcoin Cash Mining Profitable?
One thing that needs to be clear to everyone intending to become a miner is that today’s mining is nothing like what it used to be. When cryptocurrencies first appeared, mining was a quick and easy way to earn new coins.
However, back then, cryptocurrencies were often not of great value. Of course, with the change of time, their value has also skyrocketed over the years.
However, this also affects the mining process, and today, mining requires a lot of resources along with expensive equipment.
While it is still possible to make a profit through mining, every prospective miner should still try and calculate how much they can earn, and see if the profits are enough to cover the costs. are not.
The upside to mining is that it can be profitable, which is why so many large corporations, and even a few governments, have entered the mining industry.
For this reason, individual mining operations can often be quite difficult to accomplish, and for some cryptocurrencies, such as Bitcoin, even less so.
Should you mine Bitcoin Cash or Bitcoin?
Although BCH mining is quite similar to BTC mining, there are some important differences that every miner should know. For example, the limit of a BCH block is 8MB, while a BTC block can only increase to 1MB. That is, BCH blocks are larger, which means they require more computing power to mine.
This also means that they require more energy, and will make electricity bills much larger. However, larger blocks will result in greater rewards for miners after successfully mining each block.
Now, since both of these coins are based on the same Blockchain, the current mining reward is the same – 12.5 coins. However, the biggest difference lies in the price of these two coins. At the time of writing, Bitcoin is valued at 6,619.52 per coin, while the price of Bitcoin Cash is just $536.85 per coin.
Because of such a significant difference, Bitcoin Cash mining can only be effective if the block complexity is lower than the Bitcoin block complexity.
In the end, a lot of miners have found that mining BCH is less profitable than mining BTC. Some have even suffered damage at some point. However, it is interesting that they continue to dig, despite the current losses.
This can only explain that, their confidence in BCH is still high enough for them to move on, and many of them have decided to hold onto their coins to wait for the price to rise.
The conclusion here is that mining BCH can be profitable, but a lot of the profit lies in the price of the coin. After all, the market has been pretty bad throughout the year so far, calculating the current price of a coin is not the best way to determine its profitability. There are many who believe that a bull run is about to happen, and when it does, Bitcoin Cash mining will once again become the primary goal of every miner.