Ever since digital currency came into being, there has been a race. Everyone says that mining this coin is better and more profitable than the rest, but nobody knows anything. That is why we are here to help you!

BTC VS BCH: An Introduction

BTC is the most popular cryptocurrency in terms of value and market cap. Bitcoin Network was developed by Satoshi Nakamoto, the author of the bitcoin white paper. It is a decentralized digital currency. No central bank, firm, or person controls its price, and network nodes verify transactions. All the data is collected and managed in a public distributed ledger, also known as the blockchain.

On the other hand, there are many hard forks of BTC, such as Bitcoin Cash and Bitcoin SV. These altcoins are developed through the same source code as BTC. Most miners have the option to mine between BTC and BCH because they both have compatible algorithms. Therefore, miners can choose which coin to mine for higher profits. But, currently, there is confusion among cryptocurrency miners.

BTC VS BCH mining profitability

At first, Bitcoin Cash encounters a decline in mining probability. There was no significant increase in value and profit. The reward halving for Bitcoin Cash brought nothing for miners. The mining reward dropped down to 6.25 BCH from 12.5 BCH. It was the first 50% block reward reduction of BCH since its emergence as a fork of Bitcoin in 2017. The further split of Bitcoin into Bitcoin Satoshi Vision (BSV) almost drained out the mining spirit due to war between fractions. The overall mining probability can be increased through mining pools in which different people combine their computational power to find a block to solve or mine a cryptocurrency.

Halving

The halving event usually occurs after every four years. After the mining of every 210,000 blacks, the block reward reduces to half. It is a default setting in Satoshi’s coding and a way to control inflation. Otherwise, it would have been difficult to control the market, and the value could have crashed drastically. Since there is a limited supply of BTC which is 21 million, it becomes compulsory to control the market price and mining rewards. The systematic inflation rate regulates the supply of new coins. It keeps everything in place. Without halving, miners could have acquired all the black rewards causing the price to crash. Halving also imposes a mining difficulty in terms of reward reduction.

Satoshi cleverly does this by seeing the very nature of fiat currencies. But due to this, over time, the reward for miners also decreases, and it is bad news for miners. We can understand the gravity of the situation by the example of gold mining. There is a finite supply of gold present in Earth’s crust, and each extraction makes it more challenging to obtain what’s left.

Mining profitability difference

Not a long ago, Bitcoin was 270% more profitable to mine than Bitcoin Cash. Seeing the lower value of BCH and the time it takes to mine, it was not surprising. However, there are clear signs that the mining probability difference between Bitcoin and Bitcoin Cash is declining. Right now, stats are changing in the cryptocurrency market. The profitability difference has decreased to only 26%. It is a huge jump, and it means that soon mining BCH will become as profitable as Bitcoin.

Bitcoin miners always wanted to get more; seeing the cost associated with mining is normal. A lot of investment in hardware is needed to start a mining farm. Cryptocurrency mining power plants are costly. In addition to that, there is massive electricity cost. But over the years, mining rewards for Bitcoin are gradually decreasing. Now, multiple miners are looking for other mining options to get more block rewards.

Bitcoin Cash Mining Profitability Keeps Rising

Ever since Bitcoin Cash emerged as the forked currency of Bitcoin, the mining profitability of BCH keeps on increasing. Mining BCH may seem unprofitable at the first. One factor was BCH price. But at the moment, the block reward for BCH is almost equal to BTC. BCH mining difficulty is less than BTC. There are multi-mining difficulty adjustments that have been done in this regard. When more people start mining it, there will be more load on the Bitcoin Cash network, and difficulty will increase. It is still difficult for miners to choose between BTC and BCH. Some prefer BTC, and others prefer to mine whatever they can to make money. Attaining profitability just like Bitcoin will be the most significant milestone of Bitcoin Cash.

There is a different picture everywhere, and it is tough to tell when the actual shift may happen. Bitcoin Cash may become more profitable, so people will start mining it. Its increased block size and mining rate will also play an important role. Service providers are supporting BCH transactions because it has become much easier to make online casino deposits with Bitcoin. It is a clear indication that BCH has survived and is back on track.

Mining rate of BTC and BCH

The mining rate of the two coins is different. Original bitcoin has a slower mining rate. The block size of BTC is still 1 MB. There is no way to mine one Bitcoin. Instead, Crytpo miners will mine blocks. One block is equal to 6.25 BTC. New blocks will increase the reward, and it takes 10 minutes to mine a block. So, theoretically, one can mine 1 BTC in 10 minutes. There is massive competition in the market for mining, which is why it is not easy to mine a block. A miner contributing 1% of the pool’s hash rate will get 1% of the block reward. With today’s difficulty rate, it may take a solo miner nearly five years to mine just one bitcoin.

Bitcoin cash has a faster transaction speed. The average transaction fee is also less. BCH’s maximum block size has reached 32 MB. BCH allows more transactions. It can process up to 200 transactions per second. 0.06980779 BitcoinCash can be mined per day with a BitcoinCash mining hash rate of 110.00 TH/s. It will take around 14.3 days to mine a single BCH while keeping in view the difficulty level, block reward, and hash rate.

Other factors, such as electricity cost, also determine profitability. If electricity costs miners more, the reward will be less. A reward is directly related to mining power; the more, the better!

Conclusion

Mining costs miners a fortune. There is no more profit in bitcoin mining as it used to be. The difficulty level also increased. Mining for bitcoin users has become more complex and less rewarding. At the same time, BCH mining is easier and more rewarding, according to current stats.

The future is going to be very interesting. Miners should pay attention to what is going on if they want to make money.