Bitcoin Cash Soaring to Record High as It’s More Profitable to Mine Than Bitcoin
fxempire.com
fxempire.com
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.
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/
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.
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!
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.