Bitcoin Cash now more profitable to mine than Bitcoin?

in bitcoin •  7 years ago 

Is it possible that Bitcoin Cash could actually be more profitable to mine than Bitcoin?

Possibly.

It certainly hasn't been the case over the past few weeks but the tide is starting to change. 

Especially now that Bitcoin Cash has rallied over 100% in the last day or so, currently trading for $640 per coin.

Why is that?

With this latest price surge, miners are making over 2% more mining Bitcoin Cash vs. mining Bitcoin.

That spread is likely to increase even further with the mining difficulty algorithm being adjusted downwards by about 50% in the coming days.

This weekend, block 479,808 is set to trigger a difficulty adjustment downwards by roughly 50%. That would mean that all things being equal, miners would make almost double mining Bitcoin Cash vs. mining Bitcoin.

Keep in mind that all things are not equal though...

There are also mining fees on both chains, and currently Bitcoin has fees of roughly $6,000 USD (1.5 Bitcoins) per block while Bitcoin Cash has fees of around $50 USD per block.

However, the speed at which the confirmations come is a big difference currently between the two.

Currently Bitcoin gets the 100 confirmations needed in order to spend the mining reward in about 17 hours. Bitcoin Cash gets those same 100 confirmations in about 34 hours, twice as long.

The much higher liquidity is a huge advantage of mining Bitcoin vs. mining Bitcoin Cash.

However, that may change in the near future...

As the profitability for miners increases on Bitcoin Cash, it is only natural that more miners will move from Bitcoin over to Bitcoin Cash, increasing liquidity. 

We are already seeing that happen now, as the price of Bitcoin Cash rises, more computing resources are being directed towards that chain.

Which means...

It looks like Bitcoin Cash is here to stay (at least in the short term), and I would not be surprised to see Bitcoin Cash continue to trend higher while Bitcoin trends lower in the very near term.

Especially with all the new mom and pop investors starting to enter the space and deciding to buy the cheaper Bitcoin alternative...

Stay informed my friends.

Sources:

https://coinmarketcap.com/currencies/bitcoin-cash/

https://www.coindesk.com/bitcoin-cash-closes-profitability-parity-original-blockchain/

Image Sources:

https://www.coindesk.com/bitcoin-milestones-alex-waters-mining-cpu-gpu/

https://coinmarketcap.com/currencies/bitcoin-cash/

https://www.coindesk.com/bitcoin-cash-101-need-know-tomorrows-fork/

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Is there anywhere to confirm current fees per block on BTC?

The "flippening" is here.

Everyone gets a second chance?

Why is that?

With this latest price surge, miners are making over 2% more mining Bitcoin Cash vs. mining Bitcoin.

That spread is likely to increase even further with the mining difficulty algorithm being adjusted downwards by about 50% in the coming days.

This weekend, block 479,808 is set to trigger a difficulty adjustment downwards by roughly 50%. That would mean that all things being equal, miners would make almost double mining Bitcoin Cash vs. mining Bitcoin.
"YES I'AM UNDERTAND NOW"

Get your Bitcoin Cash and your popcorn ready!!! Yeeehaw!

I switched all my Bitcoin to Bitcoin Cash this afternoon... I'll see ya on the Moon! 💰

Hey, I bet you woke up with a big smile when you checked the prices this morning!

You're damn right I did! 💰

Got my Bitcoin Cash insignia painted on my moon rover this morning!!! Woot woot!

Eventually BCC difficulty will rise and there would be an equilibrium on BTC/BCC. In the mean time I think that BCC will steal many funds from BCC and a huge amount of funds from LTC as it loses its "silver" status or that of a fast low fees currency.

So I think BTC is ready for a big retracement before it continues to go up once the equilibrium with BCC is found. Here is my technical analysis
https://steemit.com/bitcoin/@freedomvigilante/btc-to-correct-to-around-3148usd-and-then-recover-to-6000usd-short

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Bitmain is likely to enable Bitcoin Cash in the coming days, and I'm fairly certain we will see a big influx of miners when that happens. The other Chinese pools are likely to follow suit. I would not be surprised to see some established European and American pools enable it as well.

This is crazy.. Could BCH actually collapse the price of BTC if it keeps growing?

Bitcoin cash 56% up in one day!
Amazing!
Even if is really fickle from is birth!
Unluckely i don't have any bitcoin in my wallet and so cash.
It will be nice to have It!

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Absolutely amazing.

Why invest in something that has a serious threat of being the victim of a 51% attack. One huge miner can do serious damage. And why would we, if we are going to take a better currency than BTC, still opt for a near clone (without segwit but 8MB block size). If invest in something other than BTC which still has first mover advantage, then choose something superior! Anyway, it is a shame money is being pumped into another altcoin when others should be getting more attention.

Never underestimate the Chinese my friend, they are very powerful... especially when it come to money manipulation. 💰

Only third to the US FED and the ECB. Nobody beats those guys in currency & market manipulation!

Ahh yes... that's very true!

haha yes fair point. If interested, i detailed my thoughts further in this post:https://steemit.com/bitcoin/@attalis/bitcoin-cash-and

I'll give it a gander.

This is all temporary, eventually difficulty will adjust on both chains and they will reach an equilibrium. Be careful, don't bet everything on any particular coin, Bitcoin has Segwit and its many second layer technologies coming on the pipeline and that could go either very wrong or extremely well for its future. I'd recommend (and I'm doing it myself) having a stake on both chains.

Bitcoin cash (BCH) is a much bigger risk at this point because the mining is not as decentralized as Bitcoin (BTC). Someone could make a play with a 51% attack which could give them control of the BCH blockchain for nefarious purposes. The new interest in BCH will help to spread decentralization but the big players are going to stay with BTC for now and any stumbles with BCH will send BTC soaring again. It's like BTC is Coca Cola and BCH is Coke Lite, everybody wants "the real thing."

Now that bch is up and running ,we have the new York agreement coming up and may have three coins total , 3 coins to hodl .. Interesting times

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I can see its possibalities, after its because of the Chinese that Bitcoin forked, and that cant be all bad if they choose BCH or BCC

Now that the bitcoin is broken... make place for IOTA !!!!!

Very nice post, i do believe there is a good future for bitcoin cash! Looking forward to see the future movements of both!

Almost reason enough to buy some mining hardware.

i wanna know as you have a great knowledge my friend should i buy bitcoin cash ? and save it ? its rising i checked in many websites what do you say :) your advice would be great :) as i trust on you :)

I can't really give you investing advice, but I can say that I own both btc and bitcoin cash. Probably wouldn't hurt to own some of both.

personally I thought Bitcoin Cash will dive in price, but now I see more and more reasons why it will not and may gain in value

Thank you, thank you, thank you for those accounts Please follow me @safamostaafa

In southern California it cost just as much in electricity to run as you make from mining...insert cry face emoji here

  ·  7 years ago (edited)

I think the bcc has a future ball in front of it it is more profitable to miner in bcc because the level of diffuculty is less than the classical bitcoin
I think we will attend a 'guere' to get the btc and bcc
21Milion btc & 21Milion bcc, how has more bcc & btc is more powerful
This is technology & blockchain :)

Thank you to share so import information. I'm new in steemit and I'm learning about the criptocurrent. Excellent post.

Thank you for the news on bitcoin mining. Seems like miners are going to start mining more and more bitcoin cash. Just a few days back everyone was skeptical of bitcoin cash and whether it would even grow or survive. What an amazing growth it has had. The future looks bright for bitcoin cash :)

You've got a bright future ahead.

I can't get enough of this.

wow, I can't believe this.

great post ive been looking into bitcoin mining

Hey! very interesting info! Thanks
Due to your opinion, for how long Bitcoin Cash will be the third in terms of capitalization among all cryptocurrencies ?

Sería genial que hicieran las monedas Bitcoin

great article , for my self i will never trade this shitecoin , because it was created to destroy the old bitcoin and to fuck the bitcoin ecosystem

I will have to add some bitcoin cash to my portfolio.

Amazing effort.

It soon will become as unprofitable to mine as BTC because big companies are gonna jump on the band wagon and dedicate massive mining gear. Mining from home in general isn't very profitable.

Yep, good points.

I learned a lot, thanks!

More people jump, the difficulty raises again, meanwhile Bitcoin difficulty is lowered, people jump back.

There are no "mom and pop" buying BCC.

I was on it the whole day , but can't seem to understand why the surge in Bitcoincash? What is causing the surge after all? That is important to understand, so we know will that surge continue, or its just regular volatility we are seeing here! Can you comment on that? Thx

BCC has a great support and I guess that is an question of time for that bring up as a top cryptocoin. Look up! nowaday It's on USD 700,00! Already one of the great cryptocoin! Great post!

Haha, with the increased price in BCH, I see fewer BTC fanboys bashing BCH. :D

This is so helpful.

You're on fire!

I hadn't even thought of the cheaper coin aspect for mom and pop investors. That is a source of demand for sure.

With the amount of headlines Bitcoin and Bitcoin Cash have gotten recently I would imagine that is a big part of it...