Mining Ethereum was more profitable than mining Bitcoin in the last quarter
Miners are happier than miners. After all, for the third month in a row, mining has been more profitable than mining.
According to The Block’s Data Dashboard, Ethereum miners reported total revenues of $1,079.91 million for the month of July.
Of this total, US$878.51 million corresponded to rewards from miners. The remaining $201.04 million was for transaction validation commissions.
As a result, commissions in July represented 18.18% of miners’ revenue.
In the case of Bitcoin, the miners’ total revenue was US$971 million. Of this amount, only US$27.59 million, or 3.1%, corresponded to commissions.
Likewise, in May and June, Ethereum miners surpassed Bitcoin miners in revenue. This is the first time in the history of the two main cryptocurrencies that this situation has occurred for three consecutive months.
In addition, the data reveal that, in August, the same should be repeated.
This is because, so far, commissions received by BTC miners represent only 1.28% of the total received.
Meanwhile, for Ether miners, August commissions represent 30.58% of the month’s revenue so far.
Currently, both Ethereum and Bitcoin use a consensus system called Proof of Work, or PoW. However, the first intends to end this type of mining and migrate to Proof of Participation, or PoS, with Etherm 2.0.
In this case, users will need to leave 32 ETH “locked” in the protocol to become a validator.
Thus, Ethereum in user staking is also used as a way to encourage good behavior of the validator.
For example, a user might lose a portion of their ETH by going offline and failing validation. Or, you can lose all your Ethereum locked for trying to cheat the network.
Recently, as a path to this change, Ethereum implemented the hard fork London. Among other things, the update reduced rates and implemented an ETH burning scheme.
While it is too early to predict how the update might impact ETH mining, so far there has been no change.
By Easy Crypt