1. These Are the Most Profitable Proof-of-Work Algorithms in 2024
2022 to 2024 Sees Significant Shifts in Crypto Mining Profitability
As of January 2024, the ranking of the most profitable crypto networks for mining has evolved from what it was in 2022. Back in September 2022, Kadena stood at the forefront as the leading mineable proof-of-work (PoW) algorithm, enabling miners to extract kadena (KDA). However, today, the top spot for the most lucrative PoW network for mining is held by kaspa (KAS), which utilizes the Kheavyhash algorithm.
On Sunday, Jan. 21, mining with 9.2 terahash per second (TH/s) of Kheavyhash hashpower is reported to yield roughly $69 per day, based on current data from asicminervalue.com. This includes the daily electricity expense rate of $0.12 per kilowatt hour (kWh). Currently, Bitcoin’s SHA256 occupies the second spot in terms of profitability, yet the recent surge in grin (GRIN) values has elevated the Cuckatoo32 algorithm in terms of earnings.
Operating under the same electrical cost of $0.12 per kWh, a miner with a capacity of 36 graphs per second (GPS) can achieve a daily profit of $12.29 mining GRIN. Following closely is the SHA256 algorithm of Bitcoin, where machines with hashpower ranging from 335 to 390 terahash per second (TH/s) could yield daily earnings of $10.60 to $11.52, assuming an electricity rate of $0.12 per kWh. The leading producers of these high hashrate-producing devices are Bitmain and Microbt.
In 2024, the next two most profitable mining algorithms are Ethash and Blake2B-Sia. Ethash is linked with cryptocurrencies such as ethereum classic (ETC), while miners capable of handling Blake2B-Sia can extract siacoin (SC) and scprime (SCP). An Ethash hashrate of nearly 6 gigahash per second (GH/s) is estimated to yield around $10.40 daily, whereas 17 terahash per second (TH/s) of Blake2B-Sia mining power can generate about $9.27 each day, factoring in electricity costs of $0.12 per kilowatt hour (kWh).
Following Blake2B-Sia in the profitability ranking are the algorithms X11 and Kadena. X11 mineable currencies, including dash (DASH) and cannabiscoin (CANN), can yield a decent return with the right hashrate. Specifically, nearly 2 terahash per second (TH/s) of X11 hashrate is estimated to generate about $7.57 daily. As previously mentioned, the Kadena algorithm has dropped in the ranking, but a substantial 177 TH/s of Kadena hashrate can still produce an estimated $7.47 per day.
Interestingly, the profitability of Scrypt mining has diminished compared to its peak in September 2022. Scrypt, which mines litecoin (LTC) and dogecoin (DOGE), was the second most profitable consensus algorithm at that time. Today, Scrypt mining ranks as the 12th most profitable algorithm, trailing behind others such as Handshake, 2, Randomx, and Cryptonightr. Ethash previously held a dominant position in mining algorithms before the Ethereum upgrade, known as The Merge, which occurred on Sept. 15, 2022. Since that pivotal event, its profitability has been relatively lackluster.
2. A Shift in Cryptocurrency Mining Landscape: From SHA256 to Kheavyhash
Over the span of sixteen months, from September 2022 to January 2024, the cryptocurrency mining profitability landscape has experienced a remarkable transformation. The Bitcoin SHA256 algorithm, once ranking as the seventh most profitable for mining in September 2022, has now ascended to the third position in terms of profitability by January 2024.
Kheavyhash Takes the Lead
As of January 2024, the most profitable proof-of-work (PoW) algorithm is Kheavyhash. Operated by kaspa (KKAS), Kheavyhash offers miners an impressive yield of approximately $69 per day. This projection is based on specific hashpower and electricity cost assumptions.
Grin and Bitcoin Follow Suit
Following Kheavyhash in profitability are Grin (GRIN) and Bitcoin. Utilizing the Cuckatoo32 algorithm, GRIN secured its position in the profitable mining landscape. Bitcoin, maintaining its relevance with the SHA256 algorithm, has also held its ground.
Other Noteworthy Algorithms
Among other profitable mining algorithms are Ethash and Blake2B-Sia. Ethash is linked with ethereum classic (ETC), while Blake2B-Sia can mine siacoin (SC) and scprime (SCP). Mining algorithms such as X11 and Kadena also offer satisfactory returns.
Scrypt’s Fall in Profitability
However, the profitability of Scrypt mining has seen a decline, making it the 12th most profitable algorithm as of the report. This comes after Scrypt’s peak position in September 2022. Ethash’s profitability change is also worth noting. It held a dominant position prior to The Merge upgrade of Ethereum on September 15, 2022, which has since impacted its mining profitability.
Bitcoin Mining Becomes More Feasible
The article also sheds light on the recent 3.9% decrease in Bitcoin’s mining difficulty, making it more feasible for miners. It offers statistics on the present mining entities, their hashrates, and the total network hashrate. The piece also underlines the reduction in hashpower due to scaled-back operations in Texas.
3. Bitcoin Investment and Mining
Bitcoin, the world’s first cryptocurrency, has gained significant popularity over the years. This digital asset has revolutionized the way people perceive money and investment opportunities. In this article, we will explore the concept of Bitcoin investment and mining and its potential benefits.
Investing in Bitcoin can be a prudent financial decision for individuals seeking diverse investment portfolios. Bitcoin offers a decentralized and secure method of storing and transferring value. Unlike traditional currencies, Bitcoin is not controlled by any central authority, such as a government or financial institution. This decentralization provides several advantages for investors.
Potential for High Returns
One of the primary reasons why people invest in Bitcoin is its potential for high returns. Bitcoin’s price has experienced significant fluctuations over the years, reaching unparalleled highs. For instance, in 2017, the price soared to nearly $20,000 per Bitcoin. Although the price can be volatile, many investors have reaped substantial profits from their initial investment.
Another advantage of investing in Bitcoin is diversification. Traditional investment vehicles, such as stocks and bonds, are subject to market conditions and economic stability. Bitcoin, on the other hand, operates independently from these factors, making it an attractive addition to an investment portfolio. By diversifying their investments, individuals can potentially reduce risk and increase overall returns.
Hedge against Inflation
Inflation can erode the purchasing power of traditional currencies. Bitcoin, with its finite supply capped at 21 million coins, provides an alternative hedge against inflation. This fixed supply ensures that Bitcoin retains its value and cannot be devalued through excessive printing or manipulation. By investing in Bitcoin, individuals can protect their wealth from the effects of inflation.
Bitcoin mining is the process through which new Bitcoins are created and transactions are validated on the blockchain network. It involves solving complex mathematical problems using specialized hardware and software. Miners, in return for their computational efforts, are rewarded with newly minted Bitcoins.
Securing the Network
Mining plays a crucial role in securing the Bitcoin network. As miners validate transactions and add them to the blockchain, they ensure the integrity and immutability of the network. Without miners, the Bitcoin network would be vulnerable to attacks and fraud.
Apart from contributing to network security, mining also allows individuals to earn rewards in the form of Bitcoins. The more computing power a miner contributes, the greater their chances of earning rewards. However, due to the increasing difficulty levels and competition, mining has become more resource-intensive over time. Many miners now join mining pools to combine their computing power and increase their chances of earning rewards.
Bitcoin investment and mining offer unique opportunities for individuals looking to participate in the digital currency revolution. Investing in Bitcoin can provide high returns, diversification, and protection against inflation. Meanwhile, mining contributes to network security and offers the chance to earn newly minted Bitcoins. As with any investment, it is essential to do thorough research and consider risks before participating in Bitcoin investment and mining.