Sunday, 24 July 2022

Why does nobody want to mine BCH? Mining difficulty at long time low.

Mining difficulty for BCH is at a 3,5 year low. https://bitinfocharts.com/comparison/difficulty-bch.html#alltime

This means not many miners are competing for the right to write the next block despite profitability being the same as for BTC. https://bitinfocharts.com/comparison/difficulty-bch.html#alltime

I know SHA256 miners can switch between the chain they mine on without much difficulty. So why do they mine so much more on BTC? I can imagine 3 reasons as to why miners do this:

1) It is because blocks are not full and miners don't get enough transaction fees.

2) It is because MEV is greater on BTC. The question still would be why.

3) It is because miners have a reason to prefer one over the other.

Unfortunately I could not find out if transaction fees are considered in the source linked above. If they are not included then this would be an easy explanation since there actually is competition for block space on BTC while BCH blocks are hardly ever full.

MEV might also make sense since it is based on the miners ability to give a transaction higher priority. This is obviously more valuable if block space is very limited.

Or option 3 plays and I just haven't figured it out yet. Maybe it's really about what miners prefer to hold on their balance sheet / what they want their worth to be denominated in.

I hope the community can shine some light on this topic for me. Thank you in advance.

submitted by /u/MichaelAischmann
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source https://www.reddit.com/r/btc/comments/w6958x/why_does_nobody_want_to_mine_bch_mining/

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