Grayscale "Zcash (ZEC) is 4 times more efficient in mining than Bitcoin (BTC)"

▲ Zcash (ZEC), Cryptocurrency Mining/AI Generated Image

An analysis has emerged stating that Zcash (ZEC) mining surpasses Bitcoin (BTC) in terms of single-equipment and power efficiency.

According to BeInCrypto on September 12 (local time), Grayscale Research analyzed that the daily revenue of a single Zcash mining rig is approximately twice as high as that of a Bitcoin mining rig. The gap widens when based on power consumption. Zcash was found to generate approximately four times more revenue per megawatt-hour than Bitcoin. Zach Pandl, Head of Research at Grayscale Research, stated, “Compared to Bitcoin, Zcash mining rewards are about twice as high per rig and about four times higher per megawatt-hour.”

In terms of overall market size, Bitcoin is overwhelmingly dominant. Bitcoin miners receive total rewards of around $35 million per day. Zcash miners' daily revenue is approximately $2 million. As Bitcoin's network and hashrate are much larger, there is a significant gap in overall mining rewards. On the other hand, Zcash showed an advantage in individual equipment and power efficiency. Under some conditions, Zcash's revenue per power was analyzed to be higher than that of artificial intelligence (AI) and high-performance computing cloud services.

The improvement in Zcash's mining efficiency was influenced by the rise in ZEC price. On September 4, ZEC surpassed $1,000 for the first time in approximately 10 years. The price increase led to an influx of new mining facilities. Based on standardized hashrate indicators, Zcash's total mining activity has increased by more than 2.5 times since the beginning of the year.

However, Grayscale's comparative figures are based on revenue, not net profit. Actual mining profit varies depending on electricity costs, equipment prices, cooling costs, and maintenance expenses. The mining equipment used for the two networks is also different. Bitcoin uses SHA-256 ASICs, while Zcash requires equipment optimized for Equihash. It is not possible to immediately move the same equipment to a more profitable network.

Institutional capital inflow is also continuing. Grayscale converted its Zcash Trust into a Zcash spot ETF, ZCSH, and listed it on NYSE Arca on August 25. ZCSH surpassed $500 million in assets under management within two weeks of listing. However, BeInCrypto explained that the current Zcash mining advantage could rapidly diminish due to increasing network difficulty, changes in electricity prices, and cryptocurrency price fluctuations.

[Key Article Summary]

-The daily revenue of a single Zcash mining rig was analyzed to be approximately twice as high as that of a Bitcoin mining rig.

-Based on power efficiency, Zcash generated approximately four times more revenue per megawatt-hour than Bitcoin.

-Grayscale's comparison is based on revenue, not net profit, and actual profitability varies depending on electricity costs, equipment costs, etc.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*