Due to the scalability issues with respect to Bitcoin, a number of hard forks were initiated. According to estimates, there are approximately more than 30 various hard forks of Bitcoin. As a result of which, a number of cryptocurrency coins proved to become a partial alternative for Bitcoin, but it is clearly evident that no cryptocurrency coin has been able to reach anywhere near Bitcoin too. Due to the improvements in Bitcoin, these forks have also been widely accepted by the cryptocurrency community. However, apart from cryptocurrency investments and day trading, there are a number of other methods to earn profits too. Cryptocurrency Mining is one such method. It is a process of solving complex mathematical problems by the Brute Force computations in order to add a block of transactions to the blockchain. Let us understand Bitcoin Cash Mining and how it works.
Bitcoin Cash was originated in August 2017 as a Bitcoin fork, which basically increased the block size in order to compensate more number of transactions and indirectly increasing the overall efficiency. This particular cryptocurrency aims to replace most popular forms of digital payment which is PayPal and VISA. The current block reward for Bitcoin cash mining is around 12.5 BCH along with the transaction fees of all the transactions within that block is also received by the miner.
1. It is automatically understood that Bitcoin cash mining requires some kind of hardware equipments. Therefore, a huge amount of initial investment is required in this process of Bitcoin cash mining. Hence and needs to calculate the profits that can be extracted from the mining process. There are a number of online Bitcoin cash mining profitability calculator available in the market. they can effectively be used in order to optimize the profits or for the user to experience reality, with respect to his Bitcoin cash mining. However, it is highly crucial that the profitability calculator also considers the cost of the hardware pieces of equipment along with the electricity rates of the geographical location.
2. The difference must be kept in mind that in the case of Bitcoin, the block size used to be 1MB, but in the case of Bitcoin cash mining, the block size is 8 times bigger. Therefore more amount of calculation is required which would, in turn, consume a huge amount of electricities. Therefore one needs to assure themselves about the initiative of Bitcoin cash mining.
3. Once the miner has a clear understanding of Bitcoin Cash mining, he or she needs a Bitcoin Cash wallet in order to store the profits that they would be availing from the process. it is highly preferred that the user chooses to buy a hardware or a paper wallet over the web-based wallet, as they are one of the most secure forms of wallet.
4. The next step is to take a call between mining solely or to join the Bitcoin Cash mining pool. There are a number of consequences with respect to both the decisions. If the user wishes to keep all the block reward to himself then mining solely would be a preferred option but there are lesser chances of extracting profits from this method. On the other hand, if he chooses to join a Bitcoin Cash mining pool then the profit gets distributed among the members but the chances or probability of solving the complex mathematical problem is higher in this case.
5. Bitcoin cash mining completely on their own requires expensive mining equipment but joining a mining pool also has its downsides. One must do an effective background check on the mining pool that they are looking forward to joining, as many of them turn out to be fake. the users also need to extensively go through the list of terms and conditions and most importantly their payout structure.
6. Even Bitcoin cash mining uses Proof of Work consensus mechanism. Therefore they cannot be mined on simple processing devices as a consequence of which, Application Specific Integrated Circuits have come into the picture.
7. Some of the most popular Bitcoin Cash mining pools available in the industry are Bitcoin.com, BTC.com, F2Pool, ViaBTC, BitClub, BTC.top, AntPool, etc.
Once the whole setup is ready, Bitcoin Cash mining process is initiated and the respective amount of reward is reflected in their cryptocurrency wallet.