Cryptocurrency is a mesmerizing yet so ambiguous concept to be understood and crypto mining is even a step ahead that leaves the new customers perplexed. But some basic knowledge and the correct guideline about this concept could make it facile. I am here to talk about the mining process of a particular cryptocurrency called Bitcoin Cash and also enlighten you with a few tips on what crypto mining is.
Bitcoin Cash mining is actually the circulation of the BCH coins. It is becoming a competitive industry in the crypto world. Having all the data facilities and pools available people wonder what it takes to invest in mining.
Here’s a complete guide to solve all the possible bitcoin cash mining related queries.
What is Bitcoin Cash Mining?
Bitcoin cash mining is a process of digitally adding up the transaction records to the blockchain. It is a record preserving process carried out through complex computing. It is basically solving some complicated mathematical problems using an adequate hardware and an ample amount of electricity.
Mining is also a process by which a network confirms any new transaction and is basically a critical component of blockchain record’s maintenance and development. When the solution to the problem is found, the latest details of confirmed transactions are added as the next link in the blockchain. It is a money-making process if you earn more than the cost spent on electricity and the hardware. Even then it attracts many investors interested in crypto investments as they receive crypto tokens in return, as a reward.
Types of Mining
There are different kinds of mining depending upon the people involved, the hardware used and the infrastructure.
- Solo Mining
As the name suggests, it refers to individually investing in bitcoin cash mining. It is an expensive investment but could prove fruitful if invested correctly. Mining equipment consumes a lot of power to hash faster than all other miners and mining pools. Solo mining is mining the cryptocurrency without joining pools. It could be risky yet rewarding.
- Pool Mining
A collection of miners contributes to the mining process. Everyone takes part according to the computing capacity of his hardware and then gets the reward according to their hash rate.
Before selecting a reputable pool to join, one should consider the following factors such as pool fee, pool size, payment cycle etc. so that one could invest at the right place and earn profit.
- CPU Mining and GPU Mining
The basic difference between both is the hardware used. CPU is cheaper than GPUs, but they are very less efficient in mining, so they are hardly used. If earning maximum is the goal, CPU mining is not recommended but it could be tried by the beginners without any large investments.
To mine with CPU or GPU set up the crypto wallet and download and configure the proper software and begin with it then.
- Cloud Mining
It is hiring a mining infrastructure from a company. It is basically a contract with cloud miner such as ECOS or Genesis Mining and they lend you infrastructure where you do not have to look after the mining machinery and its maintenance, you just have to pay the charges regularly and mine the crypto currency of your choice based on the space availability.
In case you do not earn any profit, you still have to pay the fee to the owner. Crypto being a volatile domain, where no one cares if you make the profit or not, you just have to pay on time.
Is Bitcoin Cash Mining Worth It?
The rewards that miners receive is an incentive that act as the greatest motivation for people to invest in bitcoin mining. Basically, profit acts as the magnet to motivate investors. Before investing in bitcoin mining, one should consider the following financial factors.
- Bitcoin Mining Hardware
The success rate of bitcoin cash mining depends upon the equipment used. In order to win the reward in competition to other investors one should try to invest in the best possible machinery.
- Electricity
Electricity is a necessity for mining. Same as bitcoin, mining also requires a huge amount of electricity as the problems that miners try to solve are way too complicated. The power will be consumed even if one is unable to win the mining reward as everyone on the blockchain is trying their best to solve the problem. The cost of electricity depends on the country you reside in.
- Time and Device Maintenance
It takes time to set up mining equipment and make them functional. Like any other machinery, the parts of the mining devices could also get damaged or broken. For larger data facilities one could also need to hire employees to look after the machinery running through 24 hours a day.
- Bitcoin Market Price
As one is paid in bitcoins, the profit and loss in mining all depends on the cost of bitcoin in the crypto market. If the value of bitcoin is high one could earn an adequate profit but on the other hand, low values of bitcoin could lead to loss too
The profit and loss in bitcoin cash mining depends on the above-mentioned factors. It is totally one’s own decision that whether he wants to invest in mining for long term.
Environment Required for Bitcoin Cash Mining:
To run the bitcoin mining machinery, one should consider the following factors to set up properly and earn maximum money.
- Power Strength
Normally residential places and apartments are provided with 110V power connection whereas latest bitcoin mining equipments require 220V connection to operate properly. Therefore, one should hire a professional electrician to install a 220V outlet as trying to do it by one’s own self could be risky.
- Air Cooling
The mining machinery generates a huge amount of heat that could cause a suffocating environment in the surroundings. Therefore, a proper ventilation is mandatory. Exhaust fans should be installed to circulate the air in the environment, or the miners should be deployed in open spaces.
- Reliable Internet Connection
A strong internet connection is mandatory to run a miner. Wi-Fi connection is usually not considered reliable for this purpose. One should use an ethernet cable connection directly attached to the router. These cables are long enough to reach the router in case it is placed at a distance.
- Noise Reduction
In addition to the heat these miners produce a lot of noise too that could bother the people in the surroundings. A single equipment could produce 70-80 dB or 90 dB in some cases. Therefore, one should insulate the machinery in a sound roof cabin to lessen noise pollution.
These factors should be placed in mind in order to operate a miner properly and sanely.
Why you Need to Mine Bitcoin Cash?
The bitcoin industry has turned more complex over history. The normal computers could no longer be used to mine bitcoin. In order to run the blockchains smoothly, every bitcoin network aims to produce one block every 10 minutes therefore, if a million rigs try to solve a problem it would be far better than 10 rigs solving the same problem.
As the computing power working collectively to mine increases, the difficulty level of mining increases. Less computing power refers to low difficulty level. So, in today’s complex crypto world, a PC competing in a mining process is useless.
How to Start Bitcoin Cash Mining?
Bitcoin cash mining is a complex and time-consuming process so one needs to be patient while dealing with miners as solving complicated problems is not an easy task. It requires a lot of energy and time.
- Purchase the Mining Hardware
Ordinary PCs could not perform the mining procedure due to their low processing power. Bitcoin mining requires specialized hardware with efficient computational capacity and algorithm solving power. Accordingly, such computers are designed that could do the task productively.
- Install the Preferred Mining Software
After setting up the hardware, download the mining software chosen that connects one to the blockchain. By adding new bitcoin miners, the software installed adds new blocks to the blockchain. There are a lot of free bitcoin softwares one could utilize.
- Determine and Join the Bitcoin Mining Pool
No matter how much one invests in latest mining hardware and software, an individual miner cannot compete with the major mining firms backed up by mining companies. A bitcoin mining pool is the solution to this issue.
Mining Pool: An individual miner can compete in the mining domain by joining its computing power with a larger firm. For this purpose, one has to pay a fee to join a specific group of choice and in return if they are able to solve a block each individual gets a share in the reward. The individual share may be little as compared to the total reward but if one pools together thousands of rigs, the collective earning would be huge.
- Begin the Mining Process
After properly setting up the system and taking the required measures, one could start the real adventure of mining by connecting to the power outlet and internet connection.
Hardware to Mine Bitcoin Cash
Before bitcoin cash mining, one needs to invest in a proper hardware device that have been specifically built for mining. As mentioned earlier, the miners with the most efficient devices have higher chances of getting the reward.
Each device has a specific “Hashing Power”. Hashing power is actually the capacity of a mining device to work efficiently. To solve a block in mining process, it requires billions of combinations to be tried until one of them proves to be correct. The better the hashing power, the more combinations one could try every second.
Now a days, the best kind of hardware devices used are known as Application Specific Integrated Circuits (ASIC). There are a lot of different varieties, one better than the other one. In order to win the mining reward, one has no other option than to consider ASIC. Let’s have a look at some of the most efficient hardware devices available in the market.
- Halong Mining DragonMint 16T
One of the most powerful devices in the crypto world, Halong Mining DragonMint was released in 2018. The manufacturing company is Halong Mining that claims to have spent more than $30 million to bring the product to the present condition.
This device could feasibly reach the maximum hashing power of 16 TH per second. It requires a power supply between 220-240V. Depending on the country one lives in; they have to adjust the power supply accordingly with the help of a professional licensed electrician or a converter.
This device is the best option for the serious investors or miners but for the beginners or an average miner, it is not recommended.
- Antminer S9
It is the second most powerful bitcoin mining device. It was manufactured by a Chinese company Bitmain. People are of the view that Bitmain is a well-known and reliable company in the crypto world as they sell the maximum hardware devices and they are the largest pool in Bitcoin and Bitcoin Cash Industry.
This equipment got the maximum hashing power up to 14 TH per second. It is actually the upgraded version of S7 that had the maximum hashing power limit up to 4.73 TH per second.
S9 miner is a little more costly though it is less efficient than DragonMint miner.
- The Antminer S7
It is also a product manufactured by Bitmain and can reach up to maximum hashing rate of 4.73 TH per second. It is a highly reliable and popular miner in the mining industry that could prove helpful if one joins the bitcoin mining pool.
S7 will not be proved productive in case of solo mining as it does not have enough capacity to compete with the more powerful devices. Moreover, it is loud when it runs and causes a lot of noise pollution that could bother the people in surroundings.
Therefore, look upon all the pros and cons of a hardware device before making the right choice.
Software for Mining Bitcoin Cash
An up-to-date software is equally important in achieving the mining goals. Once someone purchases an ASIC device, he then needs to install a proper software to start the mining process.
It is highly recommended to use the software attached to your device. There are some external mining software programs also available, but one should not go for them as they are only adequate for CPU or GPU mining which are not usually recommended.
Some well-known mining softwares are
- hashflare.io
- minergate.com
- www.ccgmining.com
- nicehash.com
After installing the software program, one needs to provide the necessary credentials. One should provide a right bitcoin mining wallet address as later the rewards are transferred to the same address you provide. Moreover, one also needs to specify the amount of power required to be generated by the hardware. Also, the number of hours that miner should run also needs to be specified.
Earning of a Bitcoin Miner
The earning of the miner depends upon the efficiency of the hardware used. As mentioned above too the more effective the hardware, the more money one can make. The earning also depends on other factors such as power, equipment cost to ensure to be on the winning side. People who join a mining pool are more likely to get more profit. Bitcoin miners focus on low-cost electricity, an effective device and a good mining pool.
Another factor that determines the profit is the tax perspective. Whether one earns, he needs to pay the tax amount. Moreover, the price of bitcoin also matters if the value is high, one earns more and vice versa.
Profitability of Bitcoin Cash Mining
It is a more profitable process for miners due to low transaction fee, it allows people to send funds easily. The profit directly depends upon the equipment and its processing power.
One can earn maximum profit by proper research and chalking out the most effective methods to earn maximum profit. In case one is running a mining industry, he should hire expert individuals to run the hardware and software devices efficiently, in order to get the maximum return from the investment.
One should try to look for a field, where he has to pay the minimum mining charges. As bitcoin mining is a highly competitive field, where millions of miners are decoding the same problem simultaneously one should invest smartly to gain a handsome profit amount.
CONCLUSION
From the above article one can deduce that bitcoin cash mining is dependent on the investment done in the right direction in the beginning. Proper hardware and software, joining a reputable pool, cheaper electricity a good internet connection and a safer place to set up the mining machinery are the factors that add up to the profit and a huge earning.
One needs not to buy very expensive equipments rather choose the efficient one to earn more rewards. One has to share the mining reward too with others and the transaction fee is nonrefundable in case of any loss. May be in the upcoming era, the global bitcoin community will foresee a positive upbringing in the coding trends and open the mining doors for people who cannot invest in costly devices.
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