Of the two most popular cryptocurrencies, have you wondered whether you should mine Ethereum or bitcoin? You most very likely have, and I suggest mining bitcoin overheen Ethereum, and here are three reasons before my verdict.
Now let’s look at how much money you can make te a month and year by mining either Ethereum or bitcoin. To do so, wij vereiste look at a hypothetical example. I looked on eBay and found a high-end Ethereum mining equipment worth $Trio,000, with about $1,500 ter shipping costs. Let’s even forego the shipping cost and assume this is an American miner who didn’t have to fork out that much for shipping. With a hashing power of 150MH/, a 900W power consumption and average cost of $0.12 vanaf KW/h, the cryptocompare mining rekenmachine generated this result.
Spil you can see, this miner would make $Two,192 te a year, while the mining equipment itself cost $Three,000. Now let’s run the same test, this time while mining bitcoin. I also found a $Trio,000 bitcoin mining equipment, but you can even find a used one at about $Two,500. It has a hashrate of 14TH/s and power consumption of about 1,350W.
Te this case, the miner would make $6,389 te a year, more than triple what the Ethereum miner would make that year.
Cryptocurrency mining should increase ter difficulty overheen time te order to reduce the number of coins te circulation. However, the difficulty to mine Ethereum has become so high lately that it has become unprofitable, at least to the ‘small’ miner.
Proof-of-work vs. proof-of-stake
Proof-of-work is the method by which you mine Ethereum and most other cryptocurrencies today. This method of mining requires that your pc or mining equipment perform some elaborate calculations, and the very first to solve the puzzle is rewarded. However, the Ethereum network is working on a hard fork labelled ‘Casper’, which is intended to shift from proof-of-work to proof-of-stake. With this fresh way to mine Ethereum, they intend to reduce mining costs, which simply means mining equipments will become obsolete. Instead, you will have to stake a particular amount of ether, whereby the more you have, the more likely you are to be rewarded.
Future value of Ethereum vs. bitcoin
While the value of both cryptocurrencies is expected to increase ter the coming years, that of bitcoin is expected to rise much quicker. Since you are rewarded ter the coins you are mining, it would mean that bitcoin miners would earn more than those who mine Ethereum.
While the bitcoin network is attempting to ease the difficulty ter mining even for ‘small’ miners, Ethereum is becoming more elitist. Only those with high processing power can now make money when they mine Ethereum. Furthermore, once proof-of-stake is implemented, those with more Ethereum tokens will be at an advantage.
Therefore is much better to mine bitcoin instead of Ethereum at the uur, and all factors favour this verdict.