Anything Crypto suggests that Zcash (ZEC) is the most profitable cryptocurrency to mine, with expected returns far higher than other PoW coins like Ethereum (ETH) and Bitcoin (BTC).
The data shows that at current difficulty levels, ZEC miners using the Antminer Z9 mini could expect an $8,000 return on their investment over a two year period.
This is an unexpected higher rate of return than the normal that could be expected from other coins.
The second most profitable were ether miners using an Antminer E3, which can bring in about $2,800 over the same span of time. The most lucrative ASIC for bitcoin miners was the GMO B2, which could bring in a $1,500 return over two years.
This makes mining Zcash over 400% more profitable than mining bitcoin and just under 200% more than mining ether.
Anything Crypto is a good tool as it provides predictions assess increases in mining difficulty along with changes in the price of Zcash.
Optimistic predictions: A 15% increase in difficulty and a 10% price increase on a monthly basis- brought the rate of return down to just under $5,400.
Skeptical predictions: A 40% difficulty increase and 8% price increase in the same timeframe, still strongly indicates that miners could bring in nearly $1,400 in the first year of operation, even though it would become economically non-viable in the second year.
Using the same parameters, Antminer E3 users could expect profits somewhere between $1,270 and $271; the most optimistic profit for those mining bitcoin with a GMO B2 was $283, the lowest was just $81 over a two year period.
How Long Will The Profitable Zcash Mining Last?
Zcash is a peer-to-peer currency which came up in 2016. It gives its users the privilege to selectively disclose private information, meaning senders can decide whether to send funds privately or transparently.
The crypto runs off the Equihash hashing algorithm, called Bitmain’s Antminer Z9 mini, which was only unveiled at the beginning of May, was the first ASIC designed for the ZEC network.
At press time ZEC was valued at $153, giving it a total value of $666m; down by over 5% according to CoinMarketCap.
The coin’s historical performance doesn’t match the 10-8% monthly price increases assumed for Anything Crypto’s predictions: since the beginning of the year, Zcash has on average fallen by 15% on a month-by-month basis.
However, Anything Crypto’s predictions highlight ZEC as a viable mining alternative. Whilst bitcoin and ether in themselves are more valuable than Zcash, big corporations and mining pools have swamped the BTC and ETH network, meaning profitability is far lower.