New research unveils that mining Dogecoin (DOGE) is more profitable compared to mining Bitcoin Cash (BCH) as well as other coins. According to data from the crypto analytics firm Messari shared in the cryptonews, BTC and ETH miners are pocketing over 99% of all fees generated by the broader crypto mining ecosystem.
We can also see that high fees do not mean a positive for the blockchain network. While BTC and ETH are profitable for miners, they could also be expensive for end-users who are very likely to choose cheaper alternatives for their transactions.
In this manner, mining Dogecoin (DOGE) may be a smart investment, especially when compared to running into millions of dollars each month, collecting transactional fees etc. Ryan Watkins from Messari also released the research done by him, highlighting that Bitcoin and Ethereum fees account for around 99% of all miner revenues.
More than 99% of all blockchain fees are paid to Bitcoin and Ethereum miners.
Outside Bitcoin and Ethereum virtually every blockchain is free to use. pic.twitter.com/7uFXiKs9bb
— Ryan Watkins (@RyanWatkins_) June 19, 2020
What is surprising here is that mining Dogecoin (DOGE) as the self-styled meme currency, emerges among the top rewarding projects for miners. In this manner, DOGE even exceeds powerhouses like Bitcoin SV (BSV) and even Bitcoin Cash (BCH).
The Dogecoin news also show that the coin was started as a joke in 2013 but quickly caught over Reddit and 4chan, reaching a market cap of $60 million in 2014. But its use is still prominent if mining fee data is anything to go by.
On the other hand, coins like Bitcoin Cash and Zcash are almost free to use, with fees of less than a penny since early 2019. This could make them more attractive for “nocoiner” users in developed and emerging economies.
After all, mining Dogecoin and mining crypto in general is an expensive business and the Dogecoin news now show that it is still something that requires thousands in upfront investments.
“Ask one person and they’ll tell you high fees are desirable because they signal strong demand for block space. Ask another person and they’ll tell you low fees are desirable because they provide users with greater access to block space,” Watkins stated.
All in all, this research gives us a lot of insights about Dogecoin and its mining capabilities. We hope that it helps people who are planning to mine DOGE or are already mining the coin.
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