Zcash (ZEC) is the most profitable cryptocurrency to mine, with expected returns much higher than other PoW coins like Ethereum (ETH) and Bitcoin (BTC).
Data collected by the Anything Crypto cryptocurrency tool provider suggests that at current levels of difficulty, ZEC miners using the Antminer Z9 mini could expect a return of $ 8,000 on their investment over a two-year period.
This was a much higher rate of return than could be expected from other currencies. The second most profitable were the ether miners who used an Antminer E3, which could try to get around $ 2,800 at the same time. The most lucrative ASIC for bitcoin miners was the B2 OGM, which could yield a return of $ 1,500 in two years.
This makes Zcash mining more profitable by 400% compared to mining bitcoin and slightly less than 200% more than mining.
Anything Crypto provides forecasts that take into account the increases in mining difficulties and changes in the price of Zcash. Optimistic forecasts – a 15% increase in difficulty and a 10% price increase on a monthly basis – reduced the rate of return to just under $ 5,400. Skeptical forecasts – an increase in difficulty of 40% and an increase in the price of 8% over the same period of time – have suggested that miners could bring nearly $ 1,400 in the first year of business, even if it would become economically unprofitable 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 mining bitcoins with a B2 OGM was $ 283, the lowest being only $ 81 for a two-year period.
Profitable Zcash extraction; will last?
Created in 2016, Zcash is a peer-to-peer currency that offers users the ability to selectively disclose private information, which means that senders can decide whether to send funds privately or transparently.
By executing the Equihash hash algorithm, Bitmain's Antminer Z9 mini, which was unveiled at the beginning of May, was the first ASIC designed for the ZEC network.
Originally more a hobby for enthusiasts, cryptocurrency mining has become a big business. Bitmain, the producer behind Antminer, has a valuation of $ 12 billion and the company reportedly made $ 3-4 billion of operating profit in 2017. Last week, a Canadian mining company confirmed an agreement for purchase of 14,000 bitcoins ASIC rig for $ 46 million; the equivalent of 0.5% of the BTC hahrate.
At the time of printing, ZEC was valued at $ 153, for a total value of $ 666 million; down more than 5% according to CoinMarketCap. The historical performance of the currency does not correspond to the monthly increases of 10-8% forecast for Anything Crypto predictions: from the beginning of the year, Zcash has fallen on average by 15% on a monthly basis.
Although profit expectations could be unrealistic, Anything from Crypto however, the forecasts show ZEC as an alternative valid for mining. While bitcoin and ether are themselves more valuable than Zcash, large companies and mining basins have submerged the BTC and ETH network, which means that profitability is much lower.
The lack of major mining operations in Zcash suggests that for now, those with Antminer Z9 minis can expect significant returns. The fact that it remains profitable depends entirely on whether companies start investing in Equihash ASICs: independent miners should enjoy the honeymoon period while it lasts.
The author is invested in BTC and ETH, which are mentioned in this article.