Dogecoin (DOGE) mining is currently more profitable than Bitcoin (BTC). Some factors in this superiority are the initial investment, energy costs, the algorithm of each crypto asset and the time each network takes to successfully process the next block.
Examining the best dogecoin mining rigs On the Whattomine site, it is observed that the most profitable ones obtained In the last 24 hours, net profits ranged from $3 to almost $14. This is shown in the following image.
In the worst case scenario, a Dogecoin miner lost around $4.
For its part, the same statistics of bitcoin minersreflect net income in the last 24 hours, which at best reached $7.
Regarding the bitcoin devices that went into the negative, losses started at -$0.12 and in some cases reached -$6.
Dogecoin mining rigs are longer-lived
On the other hand, half of the Dogecoin mining rigs analyzed were launched in 2021, while the Bitcoin devices were launched between 2023 and 2024. There are two BTC miners that are not yet on the market, one will be released in November 2024 and another in October.
In this way, Dogecoin miners perform positively for longer than Bitcoin miners.which reduces the need to replace equipment, with the savings in operating costs that this entails.
On the other hand, it would be worth adding that Dogecoin’s profitability is favored by the initial investment that must be made. For example, the best mining equipment for this cryptocurrency, the Bitmain Antminer L9 17.6Gh, has an initial value from $6,600. Instead, the most powerful bitcoin mining rig is the Bitmain Antminer S21 XP Hydro launched in September, with a value from 10,700 dollars. The BTC miner that will be released in November will be worth $20,000.
Additionally, Application-Specific Integrated Circuits (ASPICs) are used to control the application-specific integrated circuits (ASPs). ASICs) necessary for Bitcoin mining consumes more energy, while Dogecoin mining consumes less electricity. While BTC rigs show a consumption ranging from 3,000 watts to 11,000 watts, Dogecoin miners do not exceed 4,000 watts.
Bitcoin mining is going through one of its worst years. As reported extensively by CriptoNoticiasthe metrics linked to the profitability of mining activity of the currency created by Satoshi Nakamoto exhibit a challenging situation.
Despite the current profitability of Dogecoin mining and its attractions, The security of the Bitcoin network is hardly comparable to that of the doggy coin. Among other reasons, because BTC has a much larger network of miners. This means that there are more nodes verifying and securing transactions, which makes attacks more difficult.
Dogecoin mining uses the Scrypt algorithm
One of the main qualities of Dogecoin mining is that uses the algorithm Scryptwhile bitcoin uses SHA-256. Both play a fundamental role in cryptography and cybersecurity.
Scrypt is an algorithm of hash designed to be more energy efficient. To the detriment of this, This tool provides less processing power and RAM compared to SHA-256allowing miners to operate with a hardware less expensive and potentially more people involved in mining.
The algorithm used in the Bitcoin network, on the other hand, is more intensive in terms of processing. It is optimized for the fast calculation of functions. hash and therefore can be executed in a hardware specialized (ASIC).
Due to competition and difficulty in Bitcoin mining to obtain the reward, Miners require extremely powerful and expensive ASICs that consume a lot of power.
Besides, SHA-256 is used by large mining pools (AntPool, F2pool, Foundry USA, among others) that dominate the network, reducing the possibilities for individual miners to process blocks.
Another relevant quality of Dogecoin is that A block is processed in 1 minute, compared to 10 minutes in Bitcoin.This means that Dogecoin miners receive rewards more frequently, which compensates for the fact that the block reward in Dogecoin (10,000 DOGE, which is equivalent to around $1,000) is lower than in Bitcoin (3,215 BTC).
Interestingly and in summary, Dogecoin mining during the current situation offers higher profitability for miners due to its lower cost of hardware and energy, a lower initial investment and a shorter time between blocks to obtain the reward.
