When mining first came into action, the purpose was to build a technology that could verify each and every transaction taking place on the blockchain like a digital Ledger. In the beginning, there was only a small number of miners, so the rewards were generous, and they could easily mint new crypto tokens in short mining cycles. But as the no. of transactions grew and the need for more miners emerged, the mining difficulty peaked significantly. If we talk about Bitcoin today, the mining difficulty is impossible, and thus Bitcoin mining can only be done in a profitable sense if you have a dedicated data center consisting of thousands of processing units mining Bitcoin consecutively.
It has snatched the opportunity to mine Bitcoin in small, individualized home-based mining farms from small-scale miners. So, what they’re going to do? Well, given their initial investment and the fact that they are only small, these miners mine Ethereum and in off the chart numbers. That is why the revenue generated from Ethereum mining is significantly more than that of Bitcoin, and this has been the case for the past three months.
Ethereum Miners are Now Generating more Revenue than Bitcoin
If we study the charts and data collected from different organizations and markets, then it is evident that Ethereum miners concluded $1.03 billion of revenue in the month of July, as for Bitcoin mining, it was only $971.8 million, comparatively lower than Ethereum despite the fact that Bitcoin has a fairly overstretched market capitalization.
The only edge that Ethereum miners have over Bitcoin miners is a significantly lower transaction fee as compared to Bitcoin, where the transaction fee is 3.1%. Calculating mining revenue takes into account the current value of the dollar, the proceeds made by the miners, and other such factors. The calculation takes place by adding stable mining rewards into the transaction fee of the network per block and then multiplying the whole thing with the price of cryptocurrency during a dedicated month. Evidently, the Ethereum network is way ahead of the Bitcoin network in terms of controlling their transaction fee, thus providing an edge to the miners.