Which cryptocurrencies are profitable to mine in 2023

How promising can mining be as a way to make money now? What to mine in 2023? Let's try to figure out whether it is profitable to mine bitcoin now and what other interesting coins exist for mining.

BTC Mining

Bitcoin is the first and most popular cryptocurrency in the world. And this is just one of the reasons why it is not profitable to mine it at all. Due to the large number of people who want to do this, there is a high level of competition between miners.

Another reason is the Bitcoin halving, in which the reward for miners for mining the coin is halved. This is done in order to control the emission of the first cryptocurrency. Halving takes place every 4 years, the last time it happened in 2020, after which the reward for adding a new block to the chain was 6.25 BTC. For comparison, when Bitcoin first appeared, it was 50 BTC.

Chart: BTC/USD

As a result of the competition among miners, it is no longer possible to mine bitcoin alone in 2023. Bitcoins are mostly mined on mining farms with expensive equipment owned by private companies. Miners who mine BTC on their own can unite in pools and work as a single farm.

Prices for new mining equipment on the bitmain.com website start at $1,299 and up (there are also $110,000). The $1,299 option is the ETC Miner E9 Pro. According to asicminervalue.com's miner profitability calculator, at the time of writing, the mining profit from this device is estimated at $36.27 per day.

Ether Staking

Now let's talk about Ethereum. On September 15, 2022, ETH developers held a Merge update. As a result of the upgrade, Ethereum has completely switched from traditional Proof-of-Work (PoW) mining, which requires a lot of electricity, to Proof-of-Stake (PoS), or staking. We wrote about the pros and cons of this transition in detail here. You can find out why staking didn't help ETH rise in value here.

With the transition to PoS, new ETH can only be received by someone who already has a certain amount in the first altcoin on their account. Transactions can be verified by those who control the so-called nodes (or nodes). In order to become a node manager, or validator, you must have 32 ether in your wallet. They will be frozen as a guarantee that you are interested in the operation of the blockchain financially. Those who control the nodes will profit from the transaction fees of users of the Ethereum network.

32 ETH is a considerable amount, about $52.3 thousand at today's exchange rate. However, there are also pools for staking: people can join an association to collect the required amount and share the profits from the fees among themselves. Ethermine, the world's largest ether mining pool, has unveiled a new staking pool for the first altcoin. The Ether staking service was also launched by the Swiss cryptocurrency bank SEBA.

What Else Can You Mine in 2023

What coins can be mined besides Bitcoin? Which is more profitable to mine? The meme cryptocurrency Dogecoin, which has grown significantly in 2021, including thanks to tweets from the head of Tesla and SpaceX, Elon Musk, looks promising. Despite the bear market and the fact that the price of DOGE is volatile, it is still profitable to mine it.

The reward for adding a new block to the Dogecoin blockchain is 10,000 tokens. A block occurs every minute (for comparison, a Bitcoin block appears once every 10 minutes).

Here's an example. At the time of writing, DOGE was trading at $0.08112 per coin. This means that the reward for a new block of the meme cryptocurrency was $811.2.

You can mine DOGE using a computer processor (CPU) or video card, which will cost an order of magnitude cheaper than buying BTC mining equipment.

After Ethereum's transition to PoS, the Dogecoin coin became the world's second largest PoW cryptocurrency by market capitalization after Bitcoin.

You can find out which cryptocurrency is profitable to mine in 2023 with the exception of those already mentioned if you use the coinwarz.com website. This portal evaluates the profitability of mining various digital currencies. The top ten most profitable coins to mine in 2023 (except DOGE and BTC) include:

• Verge (XVG);

• Peercoin (PPC);

• Florincoin (FLO);

• BitcoinCash (BCH);

• Litecoin (LTC);

• Einsteinium (EMC2);

• Ethereum-Classic (ETC);

• Vertcoin (VTC).