Best Cryptocurrencies for Mining: Bitcoin, Ethereum and Dogecoin

This year’s bullish momentum in digital currencies has also revived discussions about which cryptocurrencies are more profitable to mine in 2021. At the same time, Bitcoin is unexpectedly not the best option, it is far from the most profitable cryptocurrency for mining.

Bitcoin Mining Challenges

There are several reasons for this. The first is high competition. This is largely due to the halving, which significantly reduced the premiums to miners for each new block. Indeed, earlier at the dawn of the emergence of Bitcoin in one block, it was possible to get 50 BTC, now this amount is 6.25 every 10 minutes or 900 coins per day.

This struggle forces professional miners to use large farms filled with expensive hardware to be able to receive block rewards. As a result the answer to the question of which cryptocurrencies can be mined on home PCs almost always excludes Bitcoin.

One of the alternatives to participating in Bitcoin mining is joining mining pools, which combine the resources of several participants, and the received reward is divided in proportion to the participant’s share. These platforms also have drawbacks, for example, high commissions, lack of any guarantees and a dubious reputation.

Goodbye Bitcoin Mining!

Ethereum is another popular object of mining, and this is not the least due to the outstripping growth in the popularity of ETH in comparison with BTC lately. There are also pitfalls here, one of which is the slow transition from the energy-consuming principle of Proof-of-work (PoW) to Proof-of-stake (PoS), which makes mining an obsolete way to get coins.

In PoS, the task of verifying transactions is instead left to the validators who manage the nodes. To become a validator, you need to have 32 ETH, which will be frozen for an extended period. This will ensure that you have a financial interest in the proper operation of the network. Failure to act in the best interests of the network incurs fines, as this can be a loophole for attackers.

On the other hand, it is possible to receive a reward in the form of transaction fees paid by users of the Ethereum blockchain. That is how your efforts will be rewarded.

For many miners, the barrier to entry for validation can be critical. On the highs reached in May, 32 ETHs were worth $140,000. Fortunately, there are a number of platforms that allow you to join forces with other members and share the reward by staking in a pool.

What Cryptocurrencies are Profitable to Mine in 2021?

Besides Bitcoin and Ethereum, there are other alternatives. Oddly enough, one of them is Dogecoin – a playful cryptocurrency that is still received with derision and awe at the same time. Despite the jokes around, this year the asset showed a four-digit growth. Thus, when answering the question which cryptocurrencies are profitable to mine, experts often say Dogecoin.

Doge is easier to mine as 10,000 coins are created for each block and one new block appears every 60 seconds. Thus, 14 million new coins enter circulation every day. When Dogecoin hit an all-time high of $0.7376 in early May, 10,000 coins were worth $7,376, which is a considerable amount.

The list of contenders for mining could include digital assets created for privacy, such as Zcash and Monero, as well as coins formed from hard forks, such as Ravencoin and Bitcoin Gold. One of the most successful hardforks of Bitcoin that also supports mining is Litecoin. The main feature that distinguishes LTC from the ‘digital gold’ is that the total supply is 84million coins, which is four times more than 21million Bitcoins.

FAQ

How to evaluate the profitability of mining?

It is important to first make sure that mining costs do not exceed potential income. For this, there are specialized crypto calculators that calculate how much electricity is needed to mine one lot based on your regional tariffs. This option is available not only for Bitcoin, but also for several other currencies.

What is the easiest cryptocurrency to mine?

The difficulty of mining varies significantly for each cryptocurrency, including Bitcoin. If you are looking for the optimal cryptocurrency for mining, Ethereum is most likely worth considering, for which you can use the most advanced video cards from Nvidia and AMD, designed for powerful games. However, due to the lack of chips in 2021, there was a shortage of such video cards.

Which cryptocurrency is the most profitable for mining?

Here everything is also ambiguous. Factors affecting mining profitability include the current price of a digital asset, block rewards, the amount of time it takes to create a new block, the cost of electricity, and the efficiency of your hardware. Professional miners are drawn to regions with the lowest electricity tariffs, in the past, in particular, China was such a place.

How long does it take to mine one Bitcoin?

It is worth considering here that mining does not imply the creation of one whole Bitcoin, at least not yet. Currently, the minimum amount of Bitcoins obtained as a result of mining is 6.25 BTC, as a result of the halving in 2024, this amount will be 3.125 BTC, and then – 1.5625 BTC in 2028. By 2030, it will take about 20 minutes to create one BTC.

This situation is because most of the planned to issue Bitcoins are already in circulation – 18.7million out of 21million coins. Thus, there are only 2.3million coins left to be mined, according to preliminary calculations, this ceiling will be reached in 2140.

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