Grayscale: Mining Zcash is Four Times More Profitable than Bitcoin

A new study by Grayscale Research shows that mining Zcash offers higher returns for individual miners compared to Bitcoin. Daily earnings for Bitcoin miners are around $35 million, while Zcash miners earn about $2 million. A Zcash mining rig generates nearly twice the daily income of a similar Bitcoin rig, and the revenue per megawatt-hour of electricity in Zcash is approximately four times higher. Zach Pendle, Grayscale's research director, attributes Zcash's profitability advantage to the rising price of ZEC, which reached $1,177 on September 4. This price has increased by nearly 15% in a week. The price growth has led to more capacity entering the Zcash mining network, with mining activity in this network increasing more than 2.5 times since the beginning of the year. Comparing the profitability of Bitcoin and Zcash mining is challenging because the two networks use different hardware. Grayscale believes that the more attractive economics of Zcash mining could create a reinforcing cycle that enhances network security and attracts investor attention. However, current conditions may change, and increasing network difficulty and price volatility could reduce the profitability gap between the two networks.

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