Mining cryptocurrency can seem like a daunting task. One of the first choices you’ll have to make is which currency you want to go after. Zcash is one of the options that’s exploding in popularity right now, and it’s still viable to mine it. Take a look at our guide to learn how to mine Zcash.
How To Mine ZCash
Most people in the cryptocurrency world have heard of the big player in the space: Bitcoin. Sure, there are a bunch of stories of early investors making millions on the cryptocurrency, but it’s far from the only option out there.
Bitcoin also has several negative elements that other cryptos don’t. The transaction fees are high, and privacy isn’t up to par with some of the others. The blockchain the Bitcoin uses is public, which is fantastic for some applications and troublesome for others. The blockchain promises to hamper its use by criminals, but not everyone wants their legitimate purchases to be public record.
Zcash is one of the cryptocurrencies that has arisen to fill this need. It focuses on a private blockchain, rather than the universally-public Bitcoin. The algorithm Zcash uses is the same as Bitcoin, but the end result is far less visibility. People will still be able to get some information on purchases when they need it, but it won’t be publicly available like it is with Bitcoin.
In other words, you will be able to see the transaction in the blockchain but not the details. This is far preferable to many crypto users who don’t want all of their transactions to be publicly available for all to see.
Another benefit to Zcash over Bitcoin comes in the blacklisting category. Public blockchains show you everything a coin was used for, and some of them might fall into the wrong hands at one point or another. Now that you have the coin, you won’t be able to use it for many legitimate purposes because of its sketchy origins.
Pure transparency – while it sounds good on paper – can be detrimental to the market. Everyone will know how much someone paid for a product or service, stifling competition. What’s more, some consumers might be reluctant to buy certain items if they know the report will be publicly available.
Zcash uses select transparency that is much more market-friendly. You’ll be able to see a portion of the transaction history – such as when it went through – but can’t see the identity of the parties or the use of the coin.
How To Mine ZCash
Now, we’ll get into the reason you clicked on this article: learning how to mine Zcash. First, you’ll need at least one – if not two or three – incredibly strong GPUs. You’ll need to splurge on the newest items, as older models won’t give you enough power to succeed.
You will need a wallet to store you Zcash as well. There are several options out there, and we have some comparison articles you can view on our website.
There are a few different mining pools for Zcash as well, which is where you’ll need to start. Some are better than others, and we cover the differences in other guides you can find on the site. These are the materials you’ll need to get started on your journey learning how to mine Zcash.
You will also need to download the mining software that’s compatible with your computer’s operating system. Most people will be using Windows for mining Zcash, and there are several options here as well. Some are more intuitive than others.
You can open the file and get started once the download finishes. Inside, you’ll need to change the “user” setting to the username you selected during your setup.
Once you’ve finished with the setup, it’s time to start mining. Select “workers” for the job that corresponds to your card and run the file you create. Any error messages you see at this stage will mean you missed a step, and you should go back and review your inputs. You should see a message that your miner – or worker – is starting.
You can view your progress from the dashboard menu, but you won’t see anything for some time. Mining Zcoin is a lengthy process and one that will take patience if you want it to pay off.
Finally, it’s time to see what you’ve found and withdraw the Zcoin into your wallet. The program you choose might have different terms from “cash out” or “withdraw,” but they should all be intuitive and easy to understand. You will be able to review and confirm your earnings before transferring them to your wallet. This process takes a few minutes, so don’t panic if you don’t see the Zcash right away.
Most serious miners won’t use a personal computer to do their crypto mining. Sure, you can get started this way, but it’s not the ideal way to go about it.
You might want to take some time to learn on your personal computer before building a dedicated mining rig. These will cost you over $1,000 to build, if not more. You can mine in your spare time but keep in mind; you probably won’t be able to do anything else while the program is running.
You should also keep some safety considerations in mind while mining for your Zcash. This process is incredibly stressful on your machine, and there are more than a few tales of computers beginning to smoke or even catch fire while mining crypto.
Mining takes a long time and a lot of power. There are a few applications you can use to keep the computer cool, as well as installing aftermarket fans and other cooling devices.
It’s also a good idea to keep the computer in a separate room. These computers will get very hot and are not a treat in the summer. You should heavily focus on the cooling systems of the computer if you’re building a new one, and make sure you have everything backed-up if you’re using a personal computer to get started.
Profitability of Mining Zcash
Now that you know the rough outline of how to mine Zcash, you’re probably wondering whether or not it’s worth the time, energy, and investment. You might need to upgrade parts of your desktop to maximize proficiency, and that can also come with a hefty price tag.
Zcash is a mature and established cryptocurrency. It’s in the top-20 most valuable cryptos in the world and appears to be trending in the right direction. Although Zcash is rising the ranks, it’s still yet to reach the market share that popular cryptos like Bitcoin have. It’s hardly feasible to mine Bitcoin anymore, but that’s not the case with Zcash.
Only two years ago, Zcash was one of the most profitable coins to mine. There were only 12 coins in circulation at the time, meaning the bulk of the Zcash coins had yet to be mined. It would be foolish to buy-in during this time, making mining the coin far more profitable and worthwhile.
While the profit margin for mining Zcash has decreased a bit, it’s still reasonable to expect a profit when mining the coin. The market constantly fluctuates, but getting your hands on some fresh Zcash coins is a great entry into the cryptocurrency world.
Looking Toward the Future
Anyone who has been watching the cryptocurrency market knows that it’s a crowded space. There are a lot of currencies vying for attention, and some of them seem to disappear overnight. Is it possible that Zcash will be another in a long line of failed cryptos?
Well, anything’s possible, but the outlook for Zcash is a good one. The market has fluctuated significantly since Zcash first hit the scene in 2016 – valued upwards of $4,000 at one point and then as low as around $50.
Zcash, though, has a lot behind it, including partnerships with institutions like JP Morgan Inc. Investors have also pegged the coin as having massive growth potential. Some even predict that it will reach around $60,000 within the next six years.
Part of the reason the coin is so popular is that of its relation to Bitcoin. It does the same things well, and the lack of extreme transparency makes it more market-friendly. The sky is the limit when it comes to the potential of Zcash, and it’s currently in a fantastic position from a mining standpoint.
Zcash is one of the better cryptocurrency options when it comes to mining. You might not see an immediate payoff, but investors are optimistic about where the coin is headed. Sure, there will be an initial investment you need to make in upgrading your hardware, but it’s one that we think will pay off in the long run.
Learning how to mine Zcash before it explodes in popularity is important. A lot of people jumped onto the Bitcoin bandwagon when it was far too late. Now, you have the opportunity to get into Zcash before it takes over the market – which it could well do.
By taking the Bitcoin model and making it more friendly to the consumer and the market, Zcash has placed itself in the discussion for the best cryptocurrencies to invest in. All you have to do is get started mining!
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