How to Mine Bitcoin Cash? Step-by-step guide
The cryptocurrency market is not Bitcoin-only, and even those miners who don’t like the astronomical growing hashrate Bitcoin will find work — for example, switching to its main fork — Bitcoin Cash. We will explain how BCH mining is profitable, how to start mining and what equipment to use. But first, a small disclaimer: the article is aimed at advanced readers who understand the mechanism of mining. We’re not going to go into the theory, so if you don’t know how the miners work, come here first.
Is mining Bitcoin Cash profitable?
For example take Antminers19 Pro, which gives out 110 terahashes and consumes 3,200 W per hour at a cost of 10 cents per W (0.1 dollars). This is what whattomine.com says:
So, right now, Bitcoin Cash is a pretty lucrative occupation. But it is also worth bearing in mind that Antminers19 Pro on the official site cost nearly $3,800. This means that you have to invest a lot to get an income of 18 dollars a day, although the return of the investment at the current rate is about 7 months . This is a good result when compared to the situation in August-September, when ASIC could pay back for several years.
Warning: Here and further profitability is calculated for mid-January 2021, when the cryptomarket stays bully. So remember to go to the links to calculators and recalculate the results when you read this article — the situation may change.
Is it more profitable to mine Bitcoin Cash than Bitcoin?
The question is at first glance rhetorical and stands for a separate article, but for miners everything is easier — the more profitable the better. So the simplest way to find out what’s more profitable — calculate. Since the profitability of Bitcoin Cash we thought above, here are examples on the same calculators and with the same equipment for BTC:
- This is whattomine.com:
- However, the other results give cryptocompare.com::
- And here’s some more comparative data from bitinfocharts.com (bitcoin in the left column):
The overall situation is next:
- whattomine.com believes that Bitcoin Cash is slightly more profitable than Bitcoin (about 70 cents a day);
- cryptocompare.com says that Bitcoin Cash is more profitable than Bitcoin (about $2 per week);;
- bitinfocharts.com shows that in a scale of 1 terahash in Bitcoin Cash mining you lose $0.0176 or $1.93 at 110 terahashes Antminers19.
The difference is not big, but it will grow as the capacity increases, so if you’re building a really big farm, it’s better to choose Bitcoin Cash. Also, much will depend on the pool and the client, for example node Bitcoin ABC charges an additional 8% for the development of the cryptocurrency.
However, you may have other reasons to choose a cryptocurrency — market dynamics prognose, hedge complexity, technical specificity, etc.It is advisable to study both coins more fundamentally before starting mining.
How to start mining Bitcoin Cash
If your choice is Bitcoin Cash, let’s start with concrete actions. In general, deploying a Bitcoin Cash mine is no more difficult than a Bitcoin and easier than a less-known token. You just need a several steps:
- Wallet Registration — BCH-wallet integrates with the mining client and a fee is paid for it. You can register your wallet at oficial Bitcoin Cash website or any other service that supports this currency. Best if it stores the user’s data on the installed PC and not on the server of the development.
- Installation of hardware — about what can be bought to mine Bitcoin Cash we will tell below, but to assemble from a few video cards or several ASIC miners to a working farm you’ll need to see some video lessons.
- Choose a work format — you can mining Bitcoin Cash solo or connect to the pool. If you don’t have a few thousands of dollars for equipment, it’s better to work in a pool — on a low-powered farm there is no chance to form a block and get a reward.
- Installing the client — we’ll talk about the clients later but in general it is a simple procedure, especially when working in the ming pool.
- Start this crypto-frankenstein and get BCH on the connected wallet.
Okay, it’s not as easy as claudmaining, where there’s only one button, but the miner’s path has never been easy. All these steps will be discussed so that you have no further questions at the end of the article.
Hardware for Bitcoin Cash mining
The main advantage of Bitcoin Cash is that it uses the same algorithm as the mother cryptocurrency — SHA-256, which means that the same devices developed for bitcoin mining are suitable for mining Bitcoin Cash. The market is overcrowded with ASIC for the first cryptocurrency. As of early 2021, the most efficient models for this algorithm:
There is no reason in giving a full description of these ASICS, because when you search them in stores you will still see all the characteristics. Let’s just add that the leaders of SHA-256 still remain the Bitmain Antminers, who stay leaders in both power and performance of ASIC (see list of all miners you can there). But the problem is that this hardware is bought back at the pre-order stage and is quite difficult to find in shops, also it’s too expensive. It is therefore worth looking at Bitmain’s close rivals — Innosilicon and Canaan.
For GPU miners, SHA-256 farms can still be profitable when using the latest GPU models. For example, according to nicehash.com, the following video cards are relatively profitable ( the data is only relevant for their pool):
But in general, SHA-256’s minig on the GPU is considered low-yield. The whattomine.com contains a separate partition for calculating GPU profitability, but it does not include data for SHA-256 (and Bitcoin Cash). Moreover, in 2021, no review site and calculator published a hashreit on the SHA-256 algorithm, which only confirms the poor performance of the GPU in the Bitcoin Cash network.
Software for Bitcoin Cash mining
The next step is to install BCH mining software, but first you have to decide in what format you want to work in, this will help avoid extra problems when you configure the client. Bitcoin Cash miners have three software options:
- official client — developers of Bitcoin Cash have created and support the official «mining-friendly» client Bitcoin Cash Node, which can be downloaded here. It is a fairly convenient and functional client with the graphics interface, so it is also good for newcomers. In Bitcoin Cash Node works 25% of network nodes. In addition to Bitcoin Cash Node, Bitcoin ABC and Bitcoin Unlimited clients are also available, which differ in the mine setting. These 3 clients together account for 97% of the network.
- Custom clients — CG Miner and BFG Miner are the most well-known. These are console apps that are difficult for newcomers to work with, so they are very rarely used. The main plus — a huge number of settings, from the temperature of ASIC to the speed of rotation of the cooler.
- pool-client — if you have decided to work in a pool, the setting is simplified. For example, when connecting miners from Bitmain, you can use the Antminer pool tools to find detailed instructions for installing and configuring ASIC. The BTC.com pool has an even larger toolkit, but only for Bitmain devices too.
Usually, the choice of software is not a difficult problem — most Bitcoin Cash miners work through pools, so they simply install the software developed by these pools. Solo miners usually work through official clients, and console applications are exotic for the most advanced users.
Bitcoin Cash Mining pools
Working in the mining pool is the popular format of mining in the Bitcoin Cash network, since the difficulty of mining the block is quite high and the mining solo is low effective. When you select the pool, the main focus is on the pay format. There are 4 models in total:
- PPS (Pay per Share) — is a fixed fee depending on the provided capacity. The size of the share depends on the difficulty of the network and the amount of revenue per block.
- PPLNS (Pay Per Last N Shares) — here the reward depends not only on the share of capacity, but also the found blocks, so can change in all time. Miners says that the average fluctuation is 30% of the PPS fee in either direction.
- FPPS (The Full Pay-per-Share) is a payment format that not only divides the reward per block, but also the transaction fee, which adds an additional 10-20% profit.
- Solo-mining — through the pool you can mine almost independently, using the provided software. However, even for solo miners the pool charges commission for services, so it is better to use the official client.
As for the pools, their share in the Bitcoin Cash network is illustrated by CoinDance:
As can be seen, the leaders of the network are 3 pools:
- Antpool is one of the largest pools in the BCH and BTC network, owned by ASIC manufacturer Bitmain. It supports pay in PPLNS format, and from 2020 FPPS (commission 4%), the fee is listed from the official website. There are daily payments.
- BTC.com is also a Bitmain pool and has long held a dominant position in Bitcoin Cash. It pays the fee in FPPS format, the commission rate is also 4%. Full information is available here. Pays the income every day.
- Hator MM — Hator Merged Mining. It’s not a pool. The Hator network allows simultaneous mining on the SHA-256 algorithm to mine Bitcoin Cash and also native network tokens. For this purpose they provide a public server, but it is not a pool, all miners work in «solo» mode. Commission is not charged. For more information about Hathor Merged Mining click here.
On the top is also BTC.top, but we just can’t tell you anything about it. This is a private Chinese mining pool that doesn’t have a localized site, so wt don know how it’s going to connect to it and whether it’s taking anyone out of China. If you speak the chinese go there. The developers tried hard to translate the site, but were limited to a few sentences on the main page.
Here we have talk at length about how to use Bitcoin Cash cloud mining, but we will not do this for three reasons:
- Almost no one offers contracts for BCH mining, the equipment for SHA-256 is leased for bitcoin mining, not forks.
- From the start of Cloud Mining, he has a reputation as a major scam. Even honest and officially registered companies are closed down over time (especially on SHA-256, where smaller miners cannot compete with giants). Also cloud mining is a very convenient cover for Ponzi Schemes. The risk of buying a contract for a year is and in a few months (or even weeks) lose everything is very high
- Cloud mining is unprofitable and in almost all cases give income only to equipment owners. Give an example:
We find Bitcoin Cash contracts on iqmining.com. Renting 5,000 gigahash per year will cost 258 dollars (with discount) + commission (182 dollars per year). If you put the specified power in whattomine, at the current price, the monthly income is $37 or $444 per year. So we have an annual income of $444 and an annual expenditure of $440 — a result profit $4. And that’s assuming you keep the market price of the BCH quite high in the rally, but if the price goes down, you are guaranteed a loss.
The winner is the owner, who has sold its capacity at a cost that is relevant to the high bull price of Bitcoin Cash and for a year has reserved for himself a profit of 37 dollars per month. But you may not get it. Cloud mining is a long-term investment without its advantages because the service will pay in dollars at the current rate, not in BCH, which could be maintained in anticipation of future growth.