The article was drafted on 1st September, 2020.
Bitcoin has been keeping its dominating position in crypto world for 11 years. However, in 2020 it’s changing.
DeFi projects are so popular in 2020 that many DeFi tokens are “to the moon”.
The truth is as the same as people feeling. The reports are showing the investment ratio of the bitcoin are becoming less. Now in 2020, we are feeling it so strong as more people are talking about DeFi, IFPS mining and ETH mining instead of bitcoin mining.
More ETH Miners in Asia
I can notice more bitcoin miners are starting to purchase ETH miners from July. They are buying all of the ETH miners on the market and now it’s difficult to find available ETH miners for small buyers. It means there are big funds investing on ETH miners and I believe ETH price would be very potential. ( ETH price is $470 while writing this blog).
I can understand why people are giving up the bitcoin mining as the profit is less and investors have to wait longer days to get money back. In 2016-2017, investors could get the money back in 3-4 months while now they have to wait for 9-11 months. So bitcoin miners choose to jump into cryptocurrency trading and other cryptocurrency mining. For example, ZEC mining was popular in last April, and I believe ZEC miners are receiving good profit this year because ZEC price is doubled so far.
Let’s see what makes ETH miners in front of us?
1. Good Profit
Daily payout: 0.075ETH ($35.41)
Daily electricity fee: $2.2
Daily revenue: $35.41-$2.2=$33.21
Monthly revenue: #33.21*30=$996.3
When to get money back: $5064/$996.3=5(months)
That means I invest $5064, it spends 5 months when I get all of my investment back. Only if the machine is keeping running, all of the payouts will be my revenue after 5 months.
2. ETH Price Potential
As I already mentioned in last phase, ETH price has been rising a lot since this July. Because of the DeFi projects, its price would not be bad this year. Except the miners can pay back money soon in 5 months, strong price adds more confidence to investors. The pay back duration would be less than 5 months if ETH price is keeping rising.
3. The Stable Mining Difficulty
Well I think one more reason that people are moving to Ethereum is that the mining difficulty is not increasing as bitcoin. We can check the hashrate trend, it’s kinda stable in months. Investors will feel safer when everything is staying same until they can get money back.
Bitcoin Mining is fading away?
More people joining other mining projects doesn’t mean people giving up bitcoin mining. As I know, investors in bitcoin mining are increasing and the total hashrate can prove this. It’s at the all time high level these days to 130Ehs. But the people are changing. More traditional industry investors are stepping into crypto world and they are starting from bitcoin. Because bitcoin mining is the most sophisticated project among all pow projects. Professional sales, tech support, mining pool services, hosting service…all of the professional services make traditional investor fell much safer.
Much safer and stable profit from bitcoin mining, you may get your money back in longer period.
More maintenance uncertainty in Ethereum mining, but high profits and has the chance to get money back in a short period.