How to Mine Bitcoin Cash?

Bitcoin mining symbolRepresentative image taken from NewsBTC.com

Do you love Bitcoin Cash? Okay. Would you want to support the network? Great. Bitcoin Cash mining is made for people like you only. That’s an awesome way to support Bitcoin Cash while earning it in the meantime. If you’re interested in mining it, here I’m going to tell you how to do that. Let’s begin:

Getting Started: What you need to mine Bitcoin Cash?

First of all you’ll need to do some preparation to start mining Bitcoin Cash. You’ll need the following things:

  1. Hardware: Understand that Bitcoin Cash blocks tend to be 8x bigger than Bitcoin blocks, so your mining rig should have more power than the traditional Bitcoin mining rigs. You should get a mining specific rig only (the ones known as ASIC miners) as being mining specific computers they do mining at a rate much higher than that of other machines.
  2. Software: Once you have your Bitcoin mining hardware in place, you need to get the mining software. And the best software for your mining system will depend on the hardware configuration and operating system of your rig. Your software choice may also be determined by the mining pool (more on that in a minute) that you decide to join.
  3. Wallet: Lastly, you will need a wallet to receive your mining rewards.
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Once you’ve all these things in place, you can plug your setup into a power outlet.

Mining Bitcoin Cash: How to to it?

Once you’re done with all the stuff given above, you need to make a choice: whether you want to mine Bitcoin cash solo or in a pool of miners. Given below is a brief overview of both:

  • Pooled Mining: A mining pool consists of a group of miners who combine their computing power to increase their chances of solving the mining puzzles. When you join a pool your mining rig receives smaller and easier to solve algorithms because the complexity is distributed across the pool. However, this also distributes the mining rewards between all the members of the pool depending on their level of contribution in solving the problems.
  • Solo Mining: This approach, as its name suggests, revolves around mining Bitcoin Cash solo, without joining any sort of pools. If you decide to go solo you can keep the entire 12.5 BCH reward + transaction fee present in the blocks with yourself. However, unless you have an extremely powerful rig (which will obviously require tremendous amount of power to operate), you don’t stand a chance of solving a single mining puzzle on your own.

None of these two approaches is better or worse from each other. You should choose your approach wisely depending on the kind of resources that you’ve. If you decide to join a pool you’ll have to sign up on their website and add your mining rig as a “worker”. Every rig that you add will have a worker ID that will help in tracking your contribution to the pool. You can then get started by logging in to your mining software (pools often provide their own software) with your username, password and address of pool (in case of 3rd party mining software). As you’ll solve the problems, your rewards will be sent to the wallet address that you provided at the time of signing up with the pool.

On the other hand, if you go solo, your reward will appear in the connected wallet whenever you successfully process a block of transactions. And that’s how you mine Bitcoin Cash.

Conclusion

Bitcoin Cash mining is a great way of supporting this new Bitcoin fork while earning it in the meantime. However, it requires time and money investment upfront. You should get into it only if you’ve patience and can afford to invest some money into it. Share your thoughts about how would you like to mine Bitcoin Cash in the comments section below.

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Technology and business were my core interests, so it wasn’t surprising that I got interested in cryptocurrencies, which operate at the intersection of both these things. Now I live my passion by trading cryptocurrencies and covering Cryptocurrency news here at Crypto-News.in. You can connect with me on Facebook or Twitter to learn more about me. 🙂

Ethereum Co-Founder: Saying Cryptocurrency is a Bursted Bubble is “Shortsighted”

The co-founder of ethereum has made the argument that the cryptocurrency market hasn’t burst its bubble following a slump in market prices last week.

Speaking to Bloomberg, Joseph Lubin, the co-founder of ethereum, explained that it would be ‘shortsighted’ to say that the market had popped.

“It may be hard to tell because we’re so focused on ethereum, we’re so focused on building decentralised applications on the ethereum platform and we’re so much less focussed on cryptocurrencies like bitcoin,” he said. “But I would argue that we’ve seen a correction in our space, calling it a bubble to have been popped is a little bit shortsighted.”

He added that there was “foundational, fundamental work being built” and that it was still early days for the ecosystem.

His comments come at a time when the cryptocurrency market has experienced a downturn in price. Amid heightened pressure from authorities to regulate the market as well as a major selloff in coins, market prices have fallen. Over the weekend, bitcoin was trading at $7,400 while the price of ethereum had dropped to $465. At the time of publishing, ether’s value has improved slightly, at $534, according to CoinMarketCap.

Notably, though, it’s still a significant distance from the above $1,000 mark it has been experiencing of late. Bitcoin is currently trading at $8,270, which has seen a surge in price after G20 nations announced they would not be cracking down on cryptocurrencies.

Regardless of the drop in market values, Lubin appears happy with the direction that the industry is taking, particularly in relation to regulations.

“We are extremely happy about how things are going with regulators. There are many jurisdictions that are excited about the tokenised security of the utility tokens that wouldn’t be considered securities,” he said. “That’s actually true in this country as well, in the United States. There are many great applications being built worldwide on ethereum and with other blockchain technologies.”

He added that due to the number of fraudulent projects in the sector it’s ‘perfectly reasonable’ for a pause to occur, and that it was important for projects to do ‘their legal homework and issue tokens properly.’

Despite Lubin’s optimism it remains to be seen when and how market prices will recover. With the market still highly sensitive to changing environments, Ethereum prices could continue to fall along with other major cryptocurrencies if the market fails to secure a strong short-term rally.