Bitcoin cash is a cryptocurrency fork of Bitcoin classic. It was created in august 2017. It is worth noting that Bitcoin cash increases the size of blocks, which allows more transactions to be processed. Bitcoin mining is the process by which transactions are verified and added to the public ledger (known as the block chain). It is also the means through which new bitcoins are released.
The process of mining bitcoin cash.
You must be wondering how bitcoin cash is mined. There are two main activities involved:
1. Mining for blocks.
2. Addition of transactions to blocks.
1. Mining for blocks
When mining for blocks, miners use their computing power to find new blocks.
The new blocks are to be added to the block chain. The entire process is under ‘proof of work’ protocol. When a new block is discovered, the miners who made the discovery are rewarded handsomely. Currently the reward goes at 12.5 bitcoins. There are other incentives available too.
2. Addition of transactions to blocks
The second stage involves adding transactions to blocks. When a new block is discovered, the group of miners responsible for the discovery become temporary dictators of that block. When a miner needs to send some bitcoin cash to another, he will not do it physically. It is a transaction that has to be added to the blocks in the chain. Miners usually charge a fee if you want your transaction added to the blocks. It is after the addition that the transaction is deemed complete.
It is worth noting that both cash and bitcoin use the same SHA256 hashing algorithm. This means that they fight for hashing power from the same group of miners. Bitcoin cash is however more profitable to mine.
The top miners of cash are ViaBTC, AntPool, BTC.top, BTC.com among others. The mining profitability of the coin depends on the value of the coin, its fees and the difficulty involved in the mining. Difficulty in mining increases as more miners contribute their hash rate to the coin. This leads to reduced mining profitability. Currently, the coin has the second – highest 24-hour trading volume. It stands at $1.2 billion.It is also very encouraging to mine the cash (BCH) because exchanges such as Bithumb, Bitfinex and HitBTC allow the bitcoin cash to be deposited, withdrawn and also to be traded.
Bitcoin cash is focused on reversing a trend where very few online merchants accept the bitcoin. This will be made possible by adopting bigger block sizes. It will also refuse to adopt SegWit. With these mechanisms in place, the coin will definitely scale up so that its block chain supports more total transactions. This is referred to as on-chain scaling.
The process of mining cash is not as complicated as many would think. A few formalities and processes need to be observed and the overall process will give out the bitcoin cash. It is imperative to note that bitcoin was the first ever decentralized cryptocurrency.