After the May halving, BTC mining has become less profitable. But miners have other options. Experts have named coins worth paying attention to
Bitcoin mining profitability declined in 2020 due to halving. In May, the mining reward for the coin was reduced from 12.5 to 6.25 BTC. In this regard, miners began to look for alternative cryptocurrencies, hoping that they would be able to earn more money on them than on BTC.
Jahon Khabilov, CEO of the Sigmapool mining pool, recommended that miners pay attention to Bitcoin Cash and Bitcoin SV. These options are distinguished by "a good development team and miner support from China," in addition, these are two of the most successful forks of the first cryptocurrency. They are also prone to strong volatility, this can play into the hands of the most patient miners if they fix additional profits during a jump in the price of coins. Another advantage is that halving has already taken place in the altcoin network, therefore, in the coming years, this factor can be ignored.
Khabilov also suggested considering the Litecoin cryptocurrency for miners. Halving in her network happened in 2019. The price is stable, and the daily turnover of almost $ 500 million indicates the high liquidity of this asset. The ASIC miner market is not overheated, you can find quite efficient hardware at attractive prices.
Another interesting option is Zcash, added Khabilov. This asset is interesting in technology that allows you to send and receive cryptocurrency absolutely anonymously; in the modern world, this property will have a steady demand. As for mining, the cryptocurrency will experience its first halving in November this year, which may become a driver of its value growth.
The CEO and founder of EMCD, Michael Jerlis, said that miners can choose the altcoins Bitcoin Cash, Bitcoin SV, Ethereum, Ethereum Classic, DASH, Zcash, Greenpower and Monero. However, it cannot be said that mining them is more profitable than Bitcoin. The right approach to investment makes the first cryptocurrency much more profitable for mining.
BitCluster co-founder Sergey Arestov did not recommend abandoning bitcoin mining in favor of altcoins. First, for mining them, you need to purchase the appropriate equipment. These costs may not pay off, as the rise in the price of such coins can be very short-lived, albeit precipitous.
“In my practice, it happened that we bought the fashionable at that time miners iBeLink DM22g on the X11 algorithm, they were very expensive then – $ 6400, and gave a good profitability. We flew to China, met the owner, ordered by hook or by crook a minimum batch of 100 pieces. And by the time they were produced and arrived in Moscow, there was no point in taking them from the warehouse, since the profitability of production had decreased hundreds of times, ”Arestov said.
LAZM CEO Philip Modnov added that it is now difficult to predict which altcoin will be more profitable to mine. Soon, there may be a sharp disconnection of mass cards from the ETHASH network due to the update of the Ethereum blockchain to the second version. This will lead to a dramatic change in the market, in which everyone will be looking for the best option among other altcoins.
“All this will lead to an obvious imbalance, an active flow of miners between cryptocurrencies, leaps in rates and difficulties. So, it is not rewarding to predict in such a situation, ”Modnov suggested.
Ethereum mining profitability skyrocketed in August. Fees on the coin network have skyrocketed due to the boom in decentralized finance (DeFi). The average cost of one transaction with ETH reached $ 14.5, and traders paid $ 60 for using smart contracts. Against this background, on September 2, Ethereum miners earned a record $ 17 million in fees per day. However, since then, their size has dropped by 6 times.