Mining Bitcoin Cash comes with a number of benefits, among them a reward of 12.5 BCH per block + all the transaction fees within that mined block. However, there is substantial investment to make in order to make profits. Bitcoin Cash has block size of 8 MB and thus needs more computational power to mine than Bitcoin with a 1MB block size. Mining profitability of Bitcoin Cash is around 0.3142 USD/Day
for 1 THash/s compared to Bitcoin's 0.3195 USD/Day for 1 THash/s without putting into consideration the transaction fees for both networks.
Besides that, Bitcoin Cash can handle more transactions per second than Bitcoin, it takes less time to verify a transaction on Bitcoin Cash, and is cheaper in terms of transaction fees. That makes Bitcoin Cash better than Bitcoin. Apart from the fact that Bitcoin is more priced, has a larger community and more popular and therefore more value, Bitcoin Cash delivers all the benefits of Bitcoin at a much lower cost of entry into the market and is also much cheaper for transfer among exchanges and yet delivers almost similar benefits.
Here is a guide on mining Bitcoin Cash
Mining rig and mining pool selection
The first decision to make after deciding to mine Bitcoin Cash is whether you want to mine alone or join a mining pool, which is basically a pool of people coming together to contribute computing power to mine blocks together with a larger combined power and then share returns.
A mining pool is more recommended because miners together have a higher chance of solving a block to earn block rewards by way of each contributing by solving smaller and easier algorithms and receiving some share of the reward based on how much power you contributed.
As an individual miner, you would need an extremely powerful mining rig to win a block and get the full reward of 12.5 BCH. The chance of winning a block is very low on your own.
Selecting a mining pool requires you to identify how much each one pays, how big it is and their payment structure as well. You might also need to get acquainted with how much fees they charge and what kind of stats they provide. Otherwise, joining one is not hard: just sign up and set up an account and add a worker ID for each miner you are running. This will allow the tracking of your contributions.
You will also need a Bitcoin Wallet and setting it up with the mining pool so you can get your mining rewards. Also needed is a mining software client to run on your computer in order to allow you to control your mining rig and most mining pools do have their own software. Some miners come pre-configured with the software and a wallet address. You will need to enter your username and password set during sign up and the pool’s address in the software in order to start mining.
Below is a chart showing and comparing Bitcoin Cash hash rates and costs.
Different pools for Bitcoin Cash mining
Fee, reputation and country of origin are some of the three most important things to consider when looking for a mining pool.
Pools charge a fee varying between 0 to 10% and this is taken from your overall earnings. Some charge fees to join them but as far as they have lots of users and provide quality services to help you earn, they can be more worthy your attention than some charging no fees and without members.
In terms of reputation, you might want to sign up and join pools with a lot of users. To avoid are those known mining pools that are actively and deliberately -- for political or other motives -- operating in a way that reduces transactions speeds on the blockchain or refusing to switch to a more advanced version of Bitcoin that could be more secure and cheaper for users. If unsure, you can check reviews and Twitter feeds about mining pools.
Ideally, you should be able to join a mining pool located anywhere around the world as long as it has better quality experience and higher earnings.
ViaBTC is a mining pool for BTC, BCH, LTC, Dash, ZEC and Eth and according to their website, uses PPS+ method to ensure higher mining yields with security and stability,
They also offer cloud mining contract for lower fees and 24/7 maintenance, a wallet that supports all the coins mined plus Doge and NMC. They also provide real-time blockchain info.
It has 5,643 blocks in total.
BTC.com is a leading provider of Bitcoin data, pool and wallet. Its simulated stress test showed that it can withstand 180,000 miners connected at the same time.
It has 7,508 blocks in total.
Bitcoin.com Pool has a total block of 6,358 and offers a hash rate of 360.64 Ph/s for BCH and 357.30 Ph/s for BTC. It also offers $250 per TH/s with an initial cost of $1,250 and a daily fee of $0.70.
BTC.top has a total of 3,791 blocks, P2Pool.org has 55 and AntPool has 2,315. ConnectBTC and Multipool are growing with 6 and 7 blocks in total etc.
Cloud mining of Bitcoin Cash
Cloud mining does not necessary mean that you do not need any hardware because the rewards are still shared according to the computing power contributed. However, it takes the hassle of managing your own hardware away. Cloud mining uses shared computing power run from remote data centers. You do not need a noisy and energy-consuming mining hardware but only a computer for communication.
You just purchase or enter into a contract by paying money. Nevertheless, you do not control the physical hardware and also you might need to be concerned about Bitcoin cloud mining scams.
Different Bitcoin Cash mining hardware
ASIC miner - special computers meant for mining are more profitable for mining Bitcoin Cash and different hardware has different hashrate and pricing.
Below is a table with different hardware that can be used to mine Bitcoin Cash, their hash rates, and power consumption. The cost of the hardware can range from $39 to $2000.
Bitcoin Cash mining software
Although the most popular ones are CGminer and BFGminer (which are command line programs), you can also find other programs such as the EasyMiner that is more preferable for those who do not like command line programs. It can be used for both solo and pooled mining.
With some mining pools, you do not have to worry searching for a mining software because they will provide.
The most important thing about mining software is that it needs be compatible with your hardware.
Using Bitcoin Cash
Bitcoin Cash payment gateways include Bitpay multiple-blockchains/ which allows users to accept cryptocurrencies as payment or store and spend their crypto. Other than that, you can use Bitcoin Cash in purchasing files, software, services, and more and Rocketr. CoinPayments also enables different businesses to accept over 100 different cryptocurrencies as payment including Bitcoin Cash. Merchants can also accept BCH as payment through Coinify payment gateway. Also, with Coingate, different merchants can accept Bitcoin Cash in addition to other cryptocurrency payments.
For traders, Bitcoin Cash can be traded on SFOX. With Bitcoin Cash tippr, a Bitcoin Cash tipbot for Reddit and Twitter, you can reward content creators with quick BCH transactions. Coinmix also works as a Bitcoin Cash coin mixer .
Living Room of Satoshi allows people to pay everyday bills in Australia with Bitcoin Cash, piixPay allows users to pay bills or send money to family with Bitcoin Cash and other digital currencies, while ALFAtop allows users to top-up prepared mobile phones with Bitcoin Cash and other digital currencies.