Cryptocurrency mining is considered to be one of the most profitable businesses in the modern era. Bitcoin is the most fascinating virtual currency that has been existing for the last 10 years. Bitcoin mining is the most popular mining cryptocurrency, with more than 1,000,000 individuals mining bitcoin. It is important to know for crypto lovers, that not all virtual currencies are profitable to mine. Before moving towards cryptocurrency mining. it would be wise to consider only those cryptocurrencies that hold earning potential.
The history of digital currency mining starts from the emergence of bitcoin. Bitcoin is the first cryptocurrency that was mined back in 2009. The concept of crypto-mining was initiated after the success of bitcoin. Since then, many investors started to show their interest in investing funds in crypto-mining.
Blockchain technology is the main key player behind the success of cryptocurrencies as it enables the secure blocks of information to be recorded in a blockchain by solving complex mathematical equations. This article would provide you an overview of cryptocurrencies that are profitable to mine.
Major costs related to cryptocurrency mining
The world of crypto mining is greatly affected by the electricity cost. In countries, where electricity is cheap like Ukraine, there would be less cost to mine virtual currency as compared to those countries where electricity is expensive like Australia. This is the only cost related to crypto mining that could be calculated precisely.
The second most important cost related to crypto-mining includes the expense of maintaining the mining farm, cooling facilities, and infrastructure cost. The maintenance cost depends upon various factors like design, location, and size of the facility.
The cost of buying hardware is also one of the direct costs that relate to digital currency mining. The sale price of mining hardware does not remain the same, as it varies over time due to the increased rate of evolution in the industry. New mining hardware might have improved hash rate but the renewing costs make it much expensive and hence there would be very few miners who would actually shift to the latest version of the hardware right after its release.
There are many cryptocurrencies that have the potential to make the miner earn a huge amount of return. Some of those digital currencies are mentioned below.
Zcash is a virtual currency that was launched in 2016. Zcash is one of the most famous and relevant cryptocurrencies when it comes to privacy, as the use of cryptography to provide maximum privacy is achieved. Many crypto users consider Zcash a much more enhanced and refined cryptocurrency while comparing privacy with bitcoin. Another fact is that it is based on a bitcoin codebase, and the use of mining graphic cards is possible due to its unique mining algorithm. ZCash’s supply of coins is the same as the bitcoins, 21 million.
In 2016, when the Ethereum network faced a DAO attack, the network was divided into two parts and the original one is Ethereum classic, which is a computing platform based on blockchain, it supports a refined version of Nakamoto consensus. The most mining reward in 2020, when block reduced to 3.2 ETC.
Although there are two aspects related to Ethereum classic that need to take into consideration before moving forward with it. First of all, it is opposed to Ethereum and secondly, it is a bit confusing for new users, but the best part is that its mining hardware hashrate of 400.00 MH/s
Litecoin is an open-source software project and a peer-to-peer cryptocurrency. It was launched in 2011, right after two years of bitcoin’s existence, Litecoin was among one of the early altcoins.
Litecoin is one most popular virtual currencies in the business, and it has a good reputation in the crypto trading market. It has a high demand and strong functionality. Scypt protocol and GPU are used in the mining of Litecoin.
There are more than 4000 digital currencies in the world, and most of them are lucrative. The profitability element varies from one cryptocurrency to another. One can also determine the position of the digital currency in the market by going through trading platforms like “Bitpal” to find whether it would be worth investing in mining a specific cryptocurrency or not. There are various factors that determine the profitability capacity of the crypto mining project, like block mining reward and hashing function.