Inevitable. Mining profit reaches equilibrium across all coins mining hardware works for. :) It should land at parity at some point. As miners join up for the increased reward, the reward gets divided across more parties, and thus reduced per individual.
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.
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.
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.
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.
[+] [-] RichardHeart|8 years ago|reply
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.
[+] [-] cuchoi|8 years ago|reply
[+] [-] ve55|8 years ago|reply
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/
[+] [-] rebuilder|8 years ago|reply
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.
[+] [-] rihegher|8 years ago|reply
[+] [-] pmurT|8 years ago|reply
[+] [-] bdcravens|8 years ago|reply
[+] [-] dahdum|8 years ago|reply