Zcash miners are experiencing higher profitability per unit of hardware than their Bitcoin counterparts, according to research from Grayscale. The analysis compared mining returns using current-generation hardware and found that ZEC offers more attractive per-rig economics despite Bitcoin's dominance in aggregate mining revenue.
Zach Pandl, head of research at Grayscale, noted that Bitcoin miners generate approximately $35 million in daily revenue compared to $2 million for Zcash miners. However, this disparity reflects Bitcoin's much larger network and infrastructure base, which operates tens of billions of dollars worth of hardware and real estate infrastructure.
The key difference emerges in per-unit metrics. Zcash mining rewards are currently around 2x higher per mining rig and roughly four times higher per megawatt-hour (MWh) compared to Bitcoin, according to Grayscale's analysis. The study used the Bitmain S23 Hydro for Bitcoin mining and the Bitmain Z15 Pro for Zcash mining.
Both cryptocurrencies rely on Proof of Work algorithms to secure their networks, making both energy-intensive systems. Pandl stated that current valuations make Zcash mining potentially profitable and that increased mining activity supports network security.
Zcash, a privacy-focused cryptocurrency, has attracted renewed attention following price appreciation that recently pushed the token past $1,000. However, the token has experienced significant price volatility historically.
