As Bitcoin’s hashprice dips, miners are increasingly turning their attention to alternative cryptocurrencies like Alephium (ALPH) and Kaspa (KAS) for better profitability. This shift comes as Bitcoin mining, which has traditionally dominated the proof-of-work (PoW) landscape, is now considered less lucrative due to lower returns.
Here’s a detailed look at what’s happening in the mining world and why these emerging coins are catching the interest of crypto miners:
- Bitcoin Mining’s Diminished Returns: Bitcoin’s SHA256 algorithm, while still prevalent, ranks fourth in terms of profitability as of August 21, 2024. The leading mining rig, Microbt’s Whatsminer M63S, generates $9.08 per day with a hashing power of 390 terahashes per second (TH/s). However, newer algorithms such as Blake3, Kheavyhash, and Scrypt are proving to be more profitable.
- Rising Stars – Alephium and Kaspa:
- Alephium: This Layer 1 blockchain offers a unique proof-of-less-work (PoLW) consensus mechanism, an adaptation of the traditional PoW model. Alephium’s mining profitability is on the rise, driven by its increasing hashrate, which has surged from 500.8 TH/s to 2,850 TH/s. This growth has made Alephium a strong contender for miners seeking better returns. Over the past year, ALPH has skyrocketed by 586%, although it currently trades at $1.53, down from its all-time high of $3.86.
- Kaspa: Known for its Ghostdag protocol that supports parallel block creation, Kaspa has seen impressive growth. The Kaspa network’s hashrate has reached an all-time high of 824 petahashes per second (PH/s). Bitmain’s KS5 Pro miner, which utilizes Kheavyhash, currently yields about $26.48 per day, with Kaspa’s token KAS rising 283% over the past year.
- Mining Equipment and Future Prospects:
- Alephium’s AL1 Pro Miner: Set to be released in September, the AL1 Pro boasts a hashpower of 16.6 TH/s and a potential daily earning of $327. This is a notable upgrade from the original AL1 model.
- Kaspa’s KS5 Pro: This miner generates around 21 TH/s and can produce approximately $26.48 per day. The original KS5 model continues to offer substantial returns as well.
- Profitability and Market Trends: Despite the focus on newer coins, traditional miners like Bitmain’s Antminer L9 are still relevant, particularly in mining coins like Dogecoin (DOGE) or Litecoin (LTC). As the mining landscape evolves, the search for more profitable ventures intensifies, with many miners experimenting with new technologies and cryptocurrencies.
The mining landscape is shifting as miners adapt to changing profitability dynamics. Alephium and Kaspa are emerging as top choices for those seeking better returns in the current market. With Bitcoin’s profitability waning, these alternatives are becoming increasingly attractive, reflecting a broader trend of diversification in mining strategies.
