The income skyrocketed at the beginning of the year! Miner: Which is better to mine, Bitcoin or Ethereum?
Since Bitcoin, the world’s largest cryptocurrency by market value, broke through $40,000 at the beginning of this year and broke the record, the price has fallen and stabilized. Although it is temporarily hopeless to break new highs, the income of Bitcoin miners is still eye-catching!
According to on-chain data from the blockchain analysis company Coin Metrics, in January this year, the income of Bitcoin miners was estimated at 1.1 billion U.S. dollars, an increase of 62% over December!
According to data from Luxor Technologies, measured in TH/S units, the unit income of flatbread miners fluctuated between US$0.20 and US$0.27 for most of the month after reaching a peak of US$0.32 at the beginning of this month.
Fees calculated in U.S. dollars fluctuate greatly in January, and the average transaction cost for the entire month fluctuates between $5 and $16. In January, BTC miners’ network fee income was US$116 million, accounting for more than 10% of their total income, a slight increase from 9.8% in December last year. Also, according to Coin Metrics data, the fee income of miners has reached the highest level since January 2018.
Before Bitcoin’s entire network rewards were halved in May last year, the proportion of fee rewards in the total income of miners has been on the rise. Bitcoin’s block reward is halved every four years, and the increase in fee income allows miners to better maintain network security.
Also laughing from ear to ear are the miners of the world’s second-largest cryptocurrency Ethereum. Due to the soaring network activity, fees and currency prices, Ethereum miners’ income in January reached an astonishing $830 million! Data on the chain shows that the network fees of Ethereum in January 2018 only accounted for 9% of miners’ monthly income. In January of this year, nearly 40% of revenue came from network expenses, with total revenue exceeding US$504 million.
Given the high transaction costs of the Ethereum network, it is not surprising that fee income has increased as a percentage of miners’ total income. According to data from Blockchain, the average transaction fee in U.S. dollars hit a record high on January 11, exceeding $19. When DeFi was hottest, the average transaction fee was $10.33 on September 1st last year.
It is worth noting that there is a prerequisite for the above earnings estimates, that is, it is assumed that the miners sell their bitcoins and exchange them for fiat currency (USD). Generally speaking, miners will not sell their chips so easily, so the valuation is just a model based on the legal currency standard. However, the income of the miners of the two major currencies has indeed risen. Compared with the roller-coaster market in the currency circle, the miners still conform to their low-key image of “making a fortune in silence”.
Seeing the soaring income of the miners of these two major currencies, I believe many people will have a question: Is it better to mine Bitcoin or Ethereum?
There are many factors to consider when comparing the mining of these two currencies. In addition to factors such as the mining machine model, power and operating costs, and payback period, the future development prospects and appreciation space of the two public chains also need to be considered.
Since mining has a certain threshold, and also requires the amount of capital and industry experience, different investors may have different answers. However, almost all of the top ten listed mining companies in the world choose Bitcoin mining machines. Also, as the 2.0 upgrade approaches, many people are worried about whether Ethereum mining is already in the sunset industry.
As the most well-known cryptocurrency, Bitcoin mining has indeed achieved the ultimate in connecting traditional finance and the encryption industry, and Ethereum still has a lot of room for imagination. From 87 US dollars in March last year to 1,500 US dollars at this stage, Ethereum has completed a nearly 20-fold increase. in
In terms of rate of return, Ethereum mining has easily surpassed Bitcoin mining. Also, the blowout of the number of applications on Ethereum is in sharp contrast to the relatively lonely situation of Bitcoin, which is bound to affect the future appreciation of these two public chains.
Therefore, although Ethereum mining, like everything else, will eventually face exhaustion, the return of ETH mining should exceed BTC before the visible Ethereum 2.0 arrives.