In 2022, Bitcoin's SHA256 algorithm ranked as the seventh most profitable proof-of-work (PoW) network for mining. However, within a year and four months, it has risen to become the third most lucrative crypto network for mining operations.
Significant Shifts in Crypto Mining Profitability from 2022 to 2024
As of January 2024, the ranking of the most profitable crypto networks for mining has undergone significant changes compared to 2022. In September 2022, Kadena was the leading mineable proof-of-work (PoW) algorithm, allowing miners to extract kadena (KDA). However, currently, the top spot for the most profitable PoW network for mining is held by kaspa (KAS), which utilizes the Kheavyhash algorithm.
According to current data from asicminervalue.com, mining with 9.2 terahash per second (TH/s) of Kheavyhash hashpower can yield approximately $69 per day, considering a daily electricity expense rate of $0.12 per kilowatt hour (kWh). While Bitcoin's SHA256 algorithm still occupies the second spot in terms of profitability, the recent increase in grin (GRIN) values has boosted the earnings of the Cuckatoo32 algorithm.
Under the same electricity cost of $0.12 per kWh, miners with a capacity of 36 graphs per second (GPS) can achieve a daily profit of $12.29 by mining GRIN. Following closely is Bitcoin's SHA256 algorithm, where machines with hashpower ranging from 335 to 390 terahash per second (TH/s) can generate daily earnings of $10.60 to $11.52, assuming an electricity rate of $0.12 per kWh. The leading producers of these high hashrate-producing devices are Bitmain and Microbt.
In 2024, the next two most profitable mining algorithms are Ethash and Blake2B-Sia. Ethash is associated with cryptocurrencies such as ethereum classic (ETC), while miners capable of handling Blake2B-Sia can extract siacoin (SC) and scprime (SCP). An Ethash hashrate of nearly 6 gigahash per second (GH/s) is estimated to yield around $10.40 daily, whereas 17 terahash per second (TH/s) of Blake2B-Sia mining power can generate about $9.27 each day, factoring in electricity costs of $0.12 per kilowatt hour (kWh).
Following Blake2B-Sia in the profitability ranking are the algorithms X11 and Kadena. X11 mineable currencies, including dash (DASH) and cannabiscoin (CANN), can provide a decent return with the right hashrate. Specifically, a hashrate of nearly 2 terahash per second (TH/s) of X11 is estimated to generate about $7.57 daily. Although the Kadena algorithm has dropped in the ranking, a substantial 177 TH/s of Kadena hashrate can still produce an estimated $7.47 per day.
Interestingly, the profitability of Scrypt mining has declined compared to its peak in September 2022. Scrypt, which mines litecoin (LTC) and dogecoin (DOGE), was the second most profitable consensus algorithm at that time. However, Scrypt mining currently ranks as the 12th most profitable algorithm, trailing behind others such as Handshake, 2, Randomx, and Cryptonightr. Ethash previously held a dominant position in mining algorithms before the Ethereum upgrade, known as The Merge, which occurred on September 15, 2022. Since then, its profitability has been relatively lackluster.
What are your thoughts on the top mineable consensus algorithms? Share your opinions in the comments section below.
Frequently Asked Questions
How much money should I put into my Roth IRA?
Roth IRAs let you save tax on retirement by allowing you to deposit your own money. The account cannot be withdrawn from until you are 59 1/2. You must adhere to certain rules if you are going to withdraw any of your contributions prior. First, your principal (the original deposit amount) cannot be touched. This means that regardless of how much you contribute to an account, you cannot take out any more than you initially contributed. If you decide to withdraw more money than what you contributed initially, you will need to pay taxes.
The second rule states that income taxes must be paid before you can withdraw earnings. Withdrawing your earnings will result in you paying taxes. Let's take, for example, $5,000 in annual Roth IRA contributions. Let's say you earn $10,000 each year after contributing. Federal income taxes would apply to the earnings. You would be responsible for $3500 You would have $6,500 less. This is the maximum amount you can withdraw because you are limited to what you initially contributed.
So, if you were to take out $4,000 of your earnings, you'd still owe taxes on the remaining $1,500. Additionally, half of your earnings would be lost because they will be taxed at 50% (half the 40%). Even though you had $7,000 in your Roth IRA account, you only received $4,000.
There are two types if Roth IRAs: Roth and Traditional. Traditional IRAs allow pre-tax contributions to be deducted from your taxable tax income. Your traditional IRA can be used to withdraw your balance and interest when you are retired. A traditional IRA can be withdrawn up to the maximum amount allowed.
Roth IRAs don't allow you deduct contributions. But once you've retired, you can withdraw the entire contribution amount plus any accrued interest. There is no minimum withdrawal amount, unlike traditional IRAs. You don't have to wait until you turn 70 1/2 years old before withdrawing your contribution.
What is the best precious-metal to invest?
The answer to this question depends on how much risk you are willing to take and what type of return you want. Although gold has been considered a safe investment, it is not always the most lucrative. Gold may not be right for you if you want quick profits. If you have time and patience, you should consider investing in silver instead.
If you don’t want to be rich fast, gold might be the right choice. Silver might be a better investment option if steady returns are desired over a long period of time.
What Precious Metals Can You Invest in for Retirement?
The best precious metal investments are gold and silver. They're both easy to buy and sell and have been around forever. These are great options to diversify your portfolio.
Gold: Gold is one of man's oldest forms of currency. It is also extremely safe and stable. It's a great way to protect wealth in times of uncertainty.
Silver: Investors have always loved silver. This is a great choice for people who want to avoid volatility. Silver tends instead to go up than down, which is unlike gold.
Platinium is another precious metal that is becoming increasingly popular. It's like silver or gold in that it is durable and resistant to corrosion. It is however more expensive than its counterparts.
Rhodium – Rhodium is used to make catalytic conversions. It is also used for jewelry making. And, it's relatively cheap compared to other types of precious metals.
Palladium (or Palladium): Palladium can be compared to platinum, but is much more common. It's also less expensive. Investors looking to add precious and rare metals to their portfolios love it for these reasons.
How much gold can you keep in your portfolio
The amount that you want to invest will dictate how much money it takes. Start small with $5k-10k. As you grow, it is possible to rent desks or office space. So you don't have all the hassle of paying rent. It's only one monthly payment.
Also, you need to think about the type of business that you are going to run. My company is a website creator. We charge our clients about $1000-2000 per monthly depending on what they order. Consider how much you expect to make from each client, if you decide to do this kinda thing.
Because freelance work pays freelancers, you won't likely get a monthly income if you do freelance work. This means that you may only be paid once every six months.
Decide what kind of income do you want before you calculate how much gold is needed.
I recommend starting with $1k-$2k in gold and working my way up.
Can the government take your gold
Your gold is yours, so the government cannot confiscate it. You worked hard to earn it. It is yours. But, this rule is not universal. Your gold could be taken away if your crime was fraud against federal government. You can also lose precious metals if you owe taxes. However, even if taxes are not paid, gold is still your property.
How much of your IRA should include precious metals?
It is important to remember that precious metals can be a good investment for anyone. They don't require you to be wealthy to invest in them. You can actually make money without spending a lot on gold or silver investments.
You might also be interested in buying physical coins, such bullion rounds or bars. Shares in precious metals-producing companies could be an option. You might also want to use an IRA rollover program offered through your retirement plan provider.
No matter what your preference, precious metals will still be of benefit to you. They are not stocks but offer long-term growth.
Their prices are more volatile than traditional investments. If you decide to sell your investment, you will likely make more than with traditional investments.
What are the benefits of having a gold IRA?
You can save money on retirement by putting your money into an Individual Retirement Account. It will be tax-deferred up until the time you withdraw it. You control how much you take each year. There are many types available. Some are more suitable for students who wish to save money for college. Some are for investors who seek higher returns. Roth IRAs permit individuals to contribute after the age 59 1/2. Any earnings earned at retirement are subject to tax. Once they start withdrawing money, however, the earnings aren’t subject to tax again. This account may be worth considering if you are looking to retire earlier.
Because you can invest money in many asset classes, a gold IRA works similarly to other IRAs. Unlike a regular IRA where you pay taxes on gains, a gold IRA doesn't require you to worry about taxation while you wait to get them. This makes gold IRA accounts a great choice for those who want their money to be invested, not spent.
An additional benefit to owning gold through an IRA, is the ease of automatic withdrawals. That means you won't have to think about making deposits every month. To avoid missing a payment, direct debits can be set up.
Finally, gold is one the most secure investment options available. Because it's not tied to any particular country, its value tends to remain steady. Even during economic turmoil, gold prices tend to stay relatively stable. This makes it a great investment option to protect your savings from inflation.
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Do You Need a Gold IRA to Get Retirement?
- What are the Options Types, Spreads and Example. Risk Metrics
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement accounts
The best place to buy silver or gold online
To buy gold, you must first understand how it works. The precious metal gold is similar to platinum. It's very rare and is used as money because of its durability and resistance to corrosion. It is hard to use, so most people prefer jewelry made of it to real bars of gold.
Two types of gold coins are available today: the legal tender type and the bullion type. Legal tender coins are designed for circulation in a country. They often have denominations like $1 or $5 or $10.
Bullion coins are minted for investment purposes only, and their values increase over time due to inflation.
They are not exchangeable in any currency exchange system. A person can buy 100 grams of gold for $100. Each dollar spent earns the buyer 1 gram gold.
When you are looking to purchase gold, the next thing to know is where to get it. There are many options for buying gold directly from dealers. First off, you can go through your local coin shop. You might also consider going through a reputable online seller like eBay. You can also purchase gold through private online sellers.
Individuals who sell gold at wholesale and retail prices are called private sellers. Private sellers charge a 10% to 15% commission per transaction. A private seller will usually return less money than a coin shop and eBay. This option is often a great choice for investing gold as it allows you more control over its price.
You can also invest in gold physical. Physical gold is much easier to store than paper certificates, but you still have to worry about storing it safely. It is important to keep your physical gold safe in an impenetrable box such as a vault, safety deposit box or other secure container.
You can either visit a bank, pawnshop or bank to buy gold. A bank will be able to provide you with a loan for the amount of money you want to invest in gold. Pawnshops are small establishments allowing customers to borrow money against items they bring. Banks typically charge higher interest rates than pawn shops.
A third way to buy gold? Simply ask someone else! Selling gold is easy too. A company such as GoldMoney.com can help you set up a simple bank account and get paid immediately.
By: Jamie Redman
Title: The Most Profitable Proof-of-Work Algorithms for Mining in 2024
Sourced From: news.bitcoin.com/mining-digital-gold-these-are-the-most-profitable-proof-of-work-algorithms-in-2024/
Published Date: Sun, 21 Jan 2024 22:00:12 +0000