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Why miners are choosing Bitcoin Cash Mining over Bitcoin

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Though bitcoin is the leading cryptocurrency in terms of market value and capitalization, its mining is turning out to be unprofitable for most miners.

Though bitcoin is the leading cryptocurrency in terms of market value and capitalization, its mining is turning out to be unprofitable for most miners. That is mainly after including the retail price of electricity since it consumes energy heavily. As a result, there is a question mark whether to mine bitcoin cash to make profit relative to mining bitcoin. While it might sound a little bit absurd until a few weeks ago, things are changing for the better.

 

Mining Is Difficult

Though miners of bitcoin generated record revenue of $5 billion in the last six-month period, they could not earn any profit for the first time. That is mainly due to costs involved and increasingly becoming difficult to mine whereas the rewards continued to be the same. The mining structure suggests that every subsequent block needs increased computing power than the preceding one thus making it a tough proposition to survive. A recent analysis suggested that bitcoin mining cost has exceeded the rewards for the electricity cost for most mining operators though they might have generated record revenue.

There is no doubt that the existing atmosphere is not conducive enough for miners and indicated a big change in perception for miners of the leading digital coin. Though China provides some relief in terms of subsidized and cheap electricity, the overhead costs make it tough for them to generate profit. There is also increased competition hurting profitability. Interestingly, Bitmain is the manufacturer of the majority of mining rigs, and the responsibility rests with it to boost computing power, as well as, efficiency level to make mining profitable again.

 

Changes in Reality

Until a few weeks ago, no one has ever thought that mining of bitcoin will become unprofitable and that mining in bitcoin cash will make it a profitable one. For instance, in the last 5-day period, the price of bitcoin cash surged 47.71 percent to trade around $634 levels. In fact, this is the only virtual asset that increased more than half among the top ten. On the other hand, bitcoin rose 3.5 percent only in the same period.

Therefore, it is the price that makes it less attractive to mine bitcoin since the reward factor remains the same. The recent price increase in bitcoin cash suggested that miners are getting more than two percent in mining bitcoin cash relative to bitcoin mining. The spread is likely to increase further in the upcoming days with respect to the fourth-ranked digital coin.

 

Downwards Adjustments

The reason behind it is that mining difficulty algorithms are adjusted towards downwards by as much as 50 percent. For instance, a block 479,808 could prompt difficulty adjustment by approximately 50 percent downwards. This would mean that if everything else remains equal, then miners could nearly double in mining bitcoin cash relative to bitcoin.

This would mean that more miners would be tempted to move towards bitcoin cash from bitcoin. As a result, the liquidity factor, which is the main plus point for bitcoin, will get eliminated in bitcoin cash. The trend is already seen, and there are already enough indications that bitcoin cash will continue to move higher whereas bitcoin will struggle and trend lower at least in the near-term.

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Bitcoin is Halal? Will crypto rise with mass Muslim adoption?

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Many Islamic Scholars are discussing the real nature of cryptocurrencies with some of them calling it a 'HARAM' while others calling it a 'HALAL'.

Erol Yarar, the chairman of the international business forum has suggested all Islamic nations to adopt the cryptocurrency system for transactions with each other rather than adopting the US Dollar as according to him the US Dollar is used as a weapon by the United States to wreak economic havoc.

 

Calling US Dollar a ‘Punishing Tool’

Yarar expressed his concerns by stating that the US dollar is used by the United States Government to punish a specific country that the United States is not willing to be in peace with. He also stated that the United States Government uses the US Dollar to lower down the money transactions, for imposing sanctions and for making nations bowing down in front of the United States.

 

Yarar said that the US Dollar is not just a common currency but also a sanctioning tool. Also saying that at the International Business Forum this year, they will discuss the term monetary pluralism for implementing a democratic trading environment and the top features to be discussed at the next International Business Forum meeting would be the usage of Blockchain Technology and Cryptocurrency for the financial sector in the Muslim countries especially the middle east.

 

Yarar said:

“We will make a cryptocurrency system, that will be used for international trade among Islamic countries, a current issue.”

 

Bitcoin Halal?

Many Islamic Scholars are discussing the real nature of cryptocurrencies with some of them calling it a ‘HARAM SYSTEM’ or ‘ILLEGAL SYSTEM’ while others calling it a ‘HALAL SYSTEM’ or ‘LEGAL SYSTEM’ according to the Islamic principals with some Mosques such as the Shacklewell Lane Mosque in London have also started to accept cryptocurrencies as donations.

 

What do you think about bitcoin and other cryptocurrencies being termed as Halal? Tell us in the comments section below.

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Bitcoin ETF: Worlds first Cryptocurrency ETF approved

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ETF: The world's first Cryptocurrency ETF has been approved by the Switzerland authorities which will start trading on SIX, 4th largest exchange in whole Europe.

The world’s first Cryptocurrency ETF has been approved by the Switzerland authorities which will start trading on SIX, the 4th largest exchange in whole Europe which has a market capitalization of over $1.6 trillion.

 

ETF offered by Amun AG

Amun AG, a cryptocurrency startup is offering the fund that will allow the institutional investors to invest in the major cryptocurrencies such as bitcoin, ethereum, ripple, litecoin, and bitcoin cash.

Hany Rashwan, the CEO and Co-founder of the company said that the following ETP will provide an opportunity to the institutional investors that are restricted to investing in just securities and also give the same opportunity to retail investors that are unable to access cryptocurrency exchanges to due regulatory pressure. The CEO also said that before choosing Switzerland, the company had explored 23 other destinations around the world but found Swiss the most suitable.

 

The ETF will allow investors in buying the market and investing in crypto market as a whole. When investors will be investing in a fund, an amount equal to their purchase value will be held on their behalf by the custodian.

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Bitcoin Cash BCH Hash Wars: Who is winning?

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The Bitcoin Cash hash war is still on with close to 300 blocks mined on the BCHABC side using the new ruleset, which has also given the BCH network the most accumulated proof of work. Cryptocompare has given the BCH ticker to BCHABC chain followed by Bittrex also appointing the ABC chain with the BCH ticker. The ABC chain has gained more support and also mined more blocks since the split of the BCH chain into BCHABC and BCHSV. The SV chain has performed less work till now.

 

Faketoshi “Satoshi’s Shotgun”

Craig Wright had earlier threatened that he will destroy the BCH ABC chain by mining empty blocks using his huge hash power, which is being called “Satoshi’s Shotgun”. BCH ABC has apparently survived the Shotgun. Peter Rizun from Bitcoin Unlimited said:

“The difference in network effect stark: BSV has few users, no OSX or Windows clients, no block explorer, perhaps one mobile wallet, and a shotgun that doesn’t shoot so straight,”

According to cash.coin.dance, BCH ABC is currently 51.9% ahead on proof of work and is 15 blocks ahead, meaning miners will to secure the BCH ABC side and that exchanges ca resume deposits and get everything back to normal. Many supports believe that the ABC side has already won the battle.
Bittrex has listed the ABC chain as BCH and the SV chain as BSV.

While many BCH supports are claiming that the war is over and the ABC side is close to winning it, SV supporters still believe that the hash war will continue for weeks and Craig Wright continues to claim that he will destroy the ABC chain by mining empty blocks.

What do you think about the hash war? Comment below

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