- Mining DOGE is more profitable than Bitcoin Cash
- Mining BTC and ETH is good for miners not for end-users
- BTC and ETH fees account for 99% of miner revenue
Cryptocurrency News Today – according to data issued by on-chain analytics firm, Messari, Ethereum, and Bitcoin miners are going home with over 99% of the fees generated from the broader crypto-mining space. It is important to note that high fees don’t necessarily mean that the network is in a positive position.
Even though mining BTC and ETH could be very profitable for miners, it can be very costly for end-users. Which is why they are likely going to opt for a cheaper alternative to conduct their transactions. The key point of today’s report is that Dogecoin mining now more profitable than that of Bitcoin Cash and a host of other mining options.
Altcoin Mining isn’t What’s Giving Miners Gains
Altcoins aren’t giving huge gains to miners according to Messari. According to research released by an analyst with the data analytics firm, Dogecoin mining is more profitable than Bitcoin SV and Bitcoin Cash. The Messari analyst Ryan Watkins, released a study that concluded that Bitcoin and Ethereum fees make up for 99% of miner revenues in the ecosystem. Meaning 99% of Blockchain fees are paid to miners on Bitcoin and Ethereum.
Aside from Bitcoin and Ethereum, mining on every other Blockchain is free. However, the self-styled meme digital currency Dogecoin emerges as one of the top rewarding projects when it comes to cryptocurrency mining. DOGE has exceeded digital assets like Bitcoin SV and Bitcoin Cash when it comes to mining profits. Dogecoin was started in 2013. The following year it reached a total market cap of $60 million. Dogecoins’ usage is still prominent if we use mining data as a yardstick.
Mining BTC and ETH is Good for Miners, Not Users
Bitcoin and Ethereum generate $100,000 for miners. The entire cryptos out there give miners less than $500 daily. The latter isn’t necessarily a negative point. Digital assets like Zcash and Bitcoin Cash are almost free-to-use. The fees there are less than a penny hence, making them the more attractive option for users in both emerging and developed economies (who aren’t likely to pay up to 1 USD on each transaction).
Mining is expensive and often requires hundreds of thousands of USD in investment if the miner intends to set up a profitable farm. The rise in crypto-fees has been a hot topic for many since mining caught on. Critics argue that huge fee rewards aren’t a measure of success for a Blockchain network. They propose that fees must remain low. Meanwhile, Bitcoin’s transaction fees fell below $1 in the last seven days.
Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.
