Bitcoin Cash Soaring to Record High as It’s More Profitable to Mine Than Bitcoin(fxempire.com)
fxempire.com
Bitcoin Cash Soaring to Record High as It’s More Profitable to Mine Than Bitcoin
https://www.fxempire.com/news/article/bitcoin-cash-soaring-to-record-high-above-900-as-its-more-profitable-to-mine-than-bitcoin-430909
13 comments
More profitable to mine should mean more supply of Bitcoin Cash, lowering the price. What am I missing?
If you set your miners to Bitcoin Cash instead of Bitcoin, the current US-equivalent amount of concurrency you will get will be higher.
But, that does not take into account a lot of other variables:
One is that as more miners switch to Bitcoin Cash, the difficulty will increase, making it less profitable.
Two, although minor, is that some minors may politically disagree with Bitcoin Cash due to its radically large block size, and be dis-incentivized to mine it for that reason.
Third, most importantly, is that you cannot sell Bitcoins right after you mine them. You have to wait for a very large amount of confirmations[1]. So if you start mining Bitcoin Cash with all of your resources, then the price crashes, you may end up with large losses, compared to if you had stuck with Bitcoin.
To add information about your question, the amount of bitcoins produced in blocks is very low: 12.5, currently. With a supply over 16.5 million, it barely makes a dent in it unless you give it years.
[1]: https://bitcoin.stackexchange.com/questions/1991/what-is-the... [2]: https://coinmarketcap.com/currencies/bitcoin-cash/
But, that does not take into account a lot of other variables:
One is that as more miners switch to Bitcoin Cash, the difficulty will increase, making it less profitable.
Two, although minor, is that some minors may politically disagree with Bitcoin Cash due to its radically large block size, and be dis-incentivized to mine it for that reason.
Third, most importantly, is that you cannot sell Bitcoins right after you mine them. You have to wait for a very large amount of confirmations[1]. So if you start mining Bitcoin Cash with all of your resources, then the price crashes, you may end up with large losses, compared to if you had stuck with Bitcoin.
To add information about your question, the amount of bitcoins produced in blocks is very low: 12.5, currently. With a supply over 16.5 million, it barely makes a dent in it unless you give it years.
[1]: https://bitcoin.stackexchange.com/questions/1991/what-is-the... [2]: https://coinmarketcap.com/currencies/bitcoin-cash/
Two, although minor, is that some minors (sic) may politically disagree with Bitcoin Cash due to its radically large block size, and be dis-incentivized to mine it for that reason.
That's backwards. Bitcoin Cash has the old, smaller block size.
Third, most importantly, is that you cannot sell Bitcoins right after you mine them. You have to wait for a very large amount of confirmations.
100 blocks is about 18 hours right now. Then you can sell.
That's backwards. Bitcoin Cash has the old, smaller block size.
Third, most importantly, is that you cannot sell Bitcoins right after you mine them. You have to wait for a very large amount of confirmations.
100 blocks is about 18 hours right now. Then you can sell.
Bitcoin Cash is the new fork, and that fork has 2MB block size. Bitcoin (Original) still has the 1MB block size. The reason it is called "Bitcoin Cash" is because it can be used more like cash, because the transaction fees aren't assumed to be as high because more transactions can fit into a 2MB block, which means you and I don't have to put big fees onto each transaction to get into that 1MB block.
The reason they did the fork was so that the fees that were making small (cash like, e.g. buy a coffee, $10 Steam gift card, etc...) transactions impossible, are now cost efficient because there's less bidding wars from people on the network rushing into get their transaction confirmed ASAP.
Super interesting to see how it unfolds, but it appears that there's no network congestion and that the network was getting spammed prior to this fork in a means of "See. See! We need bigger blocks. That's it, we're forking. I'm sick of this."
It can get a little "tin-foil-y" but there's theories all over the place, and a lot of them have sound reasoning, but the tl;dr is /The network forked /Bitcoin = 1MB blocks /Bitcoin Cash = 2MB blocks /Where things go from here is a roll of the dice ;)
Thanks!
The reason they did the fork was so that the fees that were making small (cash like, e.g. buy a coffee, $10 Steam gift card, etc...) transactions impossible, are now cost efficient because there's less bidding wars from people on the network rushing into get their transaction confirmed ASAP.
Super interesting to see how it unfolds, but it appears that there's no network congestion and that the network was getting spammed prior to this fork in a means of "See. See! We need bigger blocks. That's it, we're forking. I'm sick of this."
It can get a little "tin-foil-y" but there's theories all over the place, and a lot of them have sound reasoning, but the tl;dr is /The network forked /Bitcoin = 1MB blocks /Bitcoin Cash = 2MB blocks /Where things go from here is a roll of the dice ;)
Thanks!
Bitcoin cash has an adjustable block size up to 8MB. Segwit2X is the upcoming fork with 2MB blocks on legacy bitcoin.
Could you explain about block size? The max blocksize for Bitcoin cash is 8 MB and the fork was initiated by the creation of a 1.9 MB block, so it's not clear why you say Bitcoin Cash has the smaller block size.
You're right. Bitcoin Cash is sort of "Bitcoin classic", without Segregated Witness, but a blocksize boost to 8MB was stuck in.
The payout in crypto currency (BCH) is fixed, transaction fees aside. The value if that payout in other currencies is floating. The work required to get the payout depends on how many others mine it.
Mining profitability generally has little bearing on the market price of the coin being mined. The supply doesn't increase, except very temporarily, because mining difficulty adjusts to account for fluctuations in hashrate.
Mining profitability generally has little bearing on the market price of the coin being mined. The supply doesn't increase, except very temporarily, because mining difficulty adjusts to account for fluctuations in hashrate.
Not necessarily as more profitable means more resources will be allocated to mine it which makes this blockchain more robust and scalable which can lead to higher price as well.
Easier to mine relative to the price... More juice for the squeeze
Given adequate hash rate, the rate of supply is typically steady.
I read this because the headline implies that mining is driving the price (untrue) but at least the article doesn't make that claim.
Thus regardless of the price of the coin, the profit in mining it will be equalized across coins, because of the fixed reward divided by total mining power.
#Bitcoin has wider infrastructure to turn your coins into cash, and other network effects which are strong, which will help it overcome the difficulty adjustment downward retargeting advantage Bitcoincash has.