How To Mine Bitcoin Cash (BCH) In 2024

Bitcoin Cash was created as a fork of Bitcoin in 2017 to address its scalability limitations. In its earlier days, the Bitcoin network generated high fees and often required considerable time to process transactions. A group of Bitcoin users developed Bitcoin Cash to improve upon these challenges of the original cryptocurrency.

The primary difference between Bitcoin Cash and Bitcoin lies in the block size. Bitcoin Cash increased the block size from 1MB to 8MB and later to 32MB, allowing more transactions to be processed in each block.

Despite sharing the same proof-of-work consensus mechanism as Bitcoin, the two blockchains are now independent and incompatible. It also means that you can mine Bitcoin Cash (BCH) just like Bitcoin and earn passive income. Here’s a step-by-step beginner guide on how to mine Bitcoin Cash.

Key takeaways

• Invest in an efficient ASIC miner like the Bitmain Antminer, connect to a mining pool, and ensure access to low-cost electricity.
• Use software like CGMiner or BFGMiner, configure it for your hardware and pool, and start mining.
• Receive proportional rewards from your mining pool based on your hash power, and monitor BCH prices and network difficulty for profitability.
• You can also explore other additional tokens to mine such as Monero, Kaspa, ZCash, Litecoin, and Dogecoin.

What do you need to mine Bitcoin Cash?

Mining hardware

To mine Bitcoin Cash (BCH), you’ll need specialized mining hardware optimized for the SHA-256 algorithm, which Bitcoin Cash shares with Bitcoin. ASICs (Application-Specific Integrated Circuits) are the most efficient hardware for mining BCH, offering far higher hash rates and energy efficiency than GPUs or CPUs. Below are key hardware options:

ASIC miners

• Bitmain Antminer S21 200T: One of the most efficient miners, offering a hash rate of 200 TH/s with a power consumption of 3,500W. It’s a top choice for serious miners, but it comes with a hefty price tag around $4,000.
• Bitmain Antminer S19 XP Hydro: Offers even higher performance at 255 TH/s, with water cooling to manage heat and noise, making it quieter but also more expensive, costing upwards of $4,300.
• MicroBT WhatsMiner M56S: A solid option with a hash rate of 212 TH/s and power consumption of 5,550W, slightly less efficient than the Antminer S21, but still powerful and available for around $1,660.

GPU Mining

While less powerful than ASICs, GPUs like NVIDIA RTX 3080 or AMD Radeon RX 6900 XT can mine alternative coins or smaller-scale projects. GPU mining for Bitcoin Cash isn’t profitable due to its high difficulty and ASIC dominance.

CPU Mining

Mining Bitcoin Cash with CPUs is practically obsolete due to the much lower computational power compared to ASICs. CPUs are generally only used for mining CPU-optimized coins like Monero.

Mining software

The most optimal mining software for Bitcoin Cash (BCH) depends on the type of mining hardware you’re using, typically ASIC miners. Below are some of the top mining software options for BCH:

1. CGMiner: One of the oldest and most widely used mining software, CGMiner supports a wide range of ASIC hardware. It’s open-source, and compatible with Windows, Linux, and macOS, making it a versatile option. CGMiner is highly customizable, with features like dynamic clocking, fan speed control, and support for various mining pools.
2. BFGMiner: Similar to CGMiner, but with a focus on flexibility and support for ASIC and FPGA hardware. BFGMiner is designed for more advanced users who want control over their mining operations. It allows users to monitor devices, mine multiple cryptocurrencies simultaneously and is compatible with Windows and Linux.
3. EasyMiner: Another beginner-friendly mining software, EasyMiner offers a clean GUI and integrates with both CGMiner and BFGMiner. It supports both solo and pool mining, and users can switch between them easily. EasyMiner is compatible with Windows and Ubuntu

Cloud mining (optional)

You can use cloud mining for Bitcoin Cash (BCH), though it comes with significant considerations. Cloud mining allows you to lease mining hardware or hashing power from a third-party provider, which takes care of the physical setup, maintenance, and electricity costs. Here’s how it works and what to keep in mind:

How cloud mining works

You essentially rent the hash power from a provider, and they run the mining operations for you. In return, you receive a share of the mined BCH proportional to your investment. Popular cloud mining services offer packages where you can lease power for different durations, often on a yearly basis. Top cloud mining providers for Bitcoin Cash include:

• ECOS: Offers cloud mining contracts for Bitcoin and Bitcoin Cash. They provide options to either rent hash power or purchase mining hardware hosted in their facilities. ECOS is known for offering competitive rates and managing logistics and equipment.
• Genesis Mining: One of the largest cloud mining providers, offering contracts for a variety of cryptocurrencies, including Bitcoin Cash. They manage the hardware for you and pay out earnings regularly.
• Hashflare: Though they previously offered Bitcoin Cash cloud mining contracts, it’s important to verify availability as the landscape changes frequently in the cloud mining space.

Risks and benefits of cloud mining

Cloud mining can be less profitable compared to owning and running your own ASIC hardware. The provider charges fees, and with fluctuating BCH prices and mining difficulty, returns can be low.

Cloud mining has a reputation for hosting scams, so it’s crucial to choose reputable services. Always do thorough research before investing in any cloud mining operation.

However, with cloud mining, one doesn’t need to buy expensive hardware or deal with operational hassles like heat and noise. It’s an easier entry into mining without the complexities of managing mining rigs.

Mining pools

A mining pool is a group of cryptocurrency miners who combine their computational resources to increase the probability of successfully mining a block and receiving the associated rewards. In a pool, participants contribute their hash power, and when the pool mines a block, the reward is distributed among all members based on the amount of computing power each contributed. This approach helps reduce the variance in mining rewards, making income more predictable and frequent for smaller miners who would otherwise have difficulty mining blocks solo.

How a mining pool works

• Combining hash power: Multiple miners work together to solve the cryptographic puzzle of mining a block.
• Reward distribution: Rewards from the mined block are divided among all contributors based on their share of the total hash rate provided to the pool.
• Pool fees: Mining pools typically charge a fee, ranging from 1% to 3%, for managing the pool and distributing rewards.

Some of the best mining pools for Bitcoin Cash include:

• ViaBTC: A well-known pool offering low fees (1% for PPLNS) and strong transparency. Supports multiple cryptocurrencies including BCH.
• AntPool: Operated by Bitmain, it offers a 0% fee in PPLNS mode for BCH mining, and allows switching between PPS and PPLNS.

Is Bitcoin Cash (BCH) mining profitable?

Bitcoin Cash (BCH) mining can be profitable, but profitability depends on several factors including hardware efficiency, electricity costs, BCH price, and mining difficulty.

Also, the block reward for mining is halved every four years just like Bitcoin. The most recent Bitcoin Cash halving occurred on April 5, 2024. This event reduced the block reward from 6.25 BCH to 3.125 BCH, cutting the mining rewards by half, as part of Bitcoin Cash’s regular halving schedule that occurs roughly every four years.

Mining profitability is typically calculated using a mining profitability calculator. This tool takes several variables into account, such as:

• Hash rate: Your miner’s computational power.
• Power consumption: How much electricity your miner uses.
• Electricity costs: The rate you pay per kilowatt-hour (kWh).
• Block reward: The current BCH block reward, which as of 2024 is 3.125 BCH per block.
• Mining difficulty: The network-wide difficulty level for finding a block.

The general formula to estimate mining profitability is:

Profit = (BCH per block×Blocks mined)−(Electricity cost+Pool fees)

How to mine Bitcoin Cash – step by step

Step 1: Build your mining rig

• Hardware selection: Choose an efficient ASIC miner such as the Bitmain Antminer S21 or MicroBT WhatsMiner M56S, which are optimized for BCH’s SHA-256 algorithm. Consider power consumption and hash rate to ensure profitability.
• Additional components: Include a reliable power supply, cooling solutions, and proper ventilation to manage heat output.

Step 2: Download software

Download mining software compatible with your hardware. Popular options for BCH include CGMiner or BFGMiner, which are ideal for ASIC miners. These programs allow you to manage mining operations, track performance, and connect to a mining pool.

Step 3: Join a pool

Joining a mining pool like ViaBTC, AntPool, or F2Pool is crucial for consistent earnings. Mining solo can be unpredictable, but pools aggregate hashing power to increase the likelihood of mining a block, sharing the rewards proportionally.

Step 4: Connect wallet

Set up a Bitcoin Cash wallet where your mining rewards will be sent. Choose between custodial wallets (easier to manage) or non-custodial wallets for more control. Electron Cash is a popular wallet for BCH.

Step 5: Start mining

Once everything is set up, run your mining software, input your pool’s credentials, and start mining. The software will handle all the necessary communication between your miner, the network, and the pool.

Step 6: Monitor & troubleshoot

Continuously monitor performance through your mining software or pool dashboard. Track metrics such as hash rate, energy consumption, and block rewards. Troubleshoot any issues related to overheating, connectivity, or hardware failures as they arise.

Other coins you can mine

Here are some of the best cryptos to mine besides Bitcoin Cash to increase your profitability chances:

How does mining even work?

Mining cryptocurrencies, including Bitcoin Cash, is the process by which transactions are validated and added to the blockchain. It requires powerful hardware, such as the latest GPU models like NVIDIA’s RTX 4090 or AMD’s RX 7900 XTX, which excel at parallel processing, ideal for tasks like hashing in mining.

Step 1: Connecting to the network

Miners connect their hardware, like ASICs or GPUs, to the cryptocurrency network. They join the decentralized blockchain and synchronize their machines to the current state of the ledger.

Step 2: Receiving transactions

The network sends unconfirmed transactions to miners. These transactions form the basis of a new block that miners will work to validate by solving complex cryptographic puzzles.

Step 3: Hashing

Miners use hashing algorithms (like SHA-256 for Bitcoin or RandomX for Monero) to generate a unique cryptographic hash for the block. GPUs or ASICs perform trillions of hashes per second to find the correct solution.

Step 4: Broadcasting the block

Once a miner solves the cryptographic puzzle, they broadcast their newly mined block to the rest of the network. The block contains the verified transactions along with the hash solution.

Step 5: Verification by nodes

Other network nodes independently verify the correctness of the solution and validate the transactions in the block. This ensures the block is legitimate and not tampered with.

Step 6: Adding to the blockchain

After the block is verified, it is appended to the blockchain, forming a permanent and immutable record. The chain continues to grow as more blocks are added over time.

Step 7: Block reward

The miner who successfully mined the block receives a block reward as compensation. For Bitcoin Cash, this reward is currently 3.125 BCH, and it incentivizes miners to keep the network secure and operational.

Final thoughts

BCH mining can be profitable for beginners, but success requires careful planning and efficient management. Start by selecting the right hardware, such as high-performance ASIC miners like the Bitmain Antminer S21, to ensure maximum hash power with optimal energy consumption.

It’s recommended for beginners to join a reputable mining pool to reduce the risks of inconsistent earnings, as solo mining is highly competitive and may not be practical for new miners. Pay attention to electricity costs, as they can significantly cut into your profits—it’s essential to mine in locations with low energy rates.

Regularly monitor the network’s mining difficulty and the price of BCH, as these factors directly affect profitability. Be cautious of scams in cloud mining or overpriced hardware, and always research thoroughly before investing.

Frequently Asked Questions

1. 01.

   How long does it take to mine 1 Bitcoin Cash?

   

   It takes around 19.7 days to mine 1 BCH with a high-performance ASIC miner and optimal conditions.

2. 02.

   What is the best way to mine Bitcoin Cash?

   

   The best way is to use an ASIC miner, join a reputable mining pool like ViaBTC, and ensure low electricity costs for consistent profitability.

3. 03.

   Can I mine Bitcoin Cash on my PC?

   

   No, mining BCH on a PC is impractical due to the high difficulty level. ASIC miners are needed for efficient BCH mining.

4. 04.

   How much RAM do you need to mine Bitcoin Cash?

   

   RAM is not a major factor in BCH mining; ASIC miners typically require minimal RAM, as hashing power is the key component.

5. 05.

   What is the best algorithm for BCH mining?

   

   BCH uses the SHA-256 algorithm, the same as Bitcoin, making it suitable for ASIC-based mining.