Bitcoin Mining Difficulty is Driving Miners Towards Ethereum for Profits

Miners are migrating from Bitcoin to Ethereum mining for its greater ROI yields

As Bitcoin became won millions of hearts in the economic and financial, policymakers and major financial institutions kept warning investors about the ripple effects that its volatility might cause. Now, as the market is losing all hopes for Bitcoin's steady recovery, investors are gunning for centralized currencies and traditional forms of investments to avoid losing any more money. Apart from direct investment, investors were also rooting to gain at least the Bitcoin mining profits, but currently, the BTC network is also suffering drastically as Bitcoin mining difficulty is on the rise. According to reports, most Bitcoin miners are migrating to Ethereum due to its greater return on investment. Mining Ethereum became even more profitable when the crypto toppled the US$4,000 resistance back in 2021. And currently, with ETH 2.0 nearing its launch, it has become increasingly difficult for Bitcoin to remain the crypto king. With these developments coming up, more and more miners are migrating to the Ether network and avoiding sudden crashes in the middle of their business.

Bitcoin's consensus rules have not been historically changed and some of the biggest crypto exchanges and miners have already tried their hands at doing so. Whereas, Ethereum is constantly evolving and its biggest change is about to come as soon as Q2 2022. Ether is set to transform from a proof-of-work-based consensus protocol to a proof-of-stake which will make the network greener and the graphics card miner will no longer be useful for adding blocks to the Ethereum blockchain. But at the same time, this mining advantage might also be devastating for the existing miners in the network, since they will be required to change their graphic cards to mine other coins that are already profitable with their current equipment. Nevertheless, even after these obligations, analysts and miners believe that Ethereum mining will be far safer and more profitable than Bitcoin.

Bitcoin Mining vs Ethereum Mining: The most profitable option for you

There are several critical differences that both Bitcoin and Ethereum miners should know. The two are distinct since the developers possesses quite different purposes while they launched the coins. Initially, it might be a little difficult for new miners to understand the differences, but their very purposes serve as the biggest contrast.

Over the past couple of years, Bitcoin's mining difficulty rose significantly due to added hash power on the network. The difficulty in Bitcoin mining is adjusted to compensate for increased hash power to make sure that the block times remain consistent for about ten minutes. Back in 2015, Bitcoin miners realized a considerable amount of increase in Bitcoin hash power. And now in April 2022, Bitcoin experienced its fourth time in the all-time increase in Bitcoin mining difficulty.

Now Ethereum mining differs from Bitcoin in many aspects. Firstly, it is a centralized software platform and supports a dual account structure in which both private key, controlled and contract-code accounts exist, which are also popular as smart contracts. Ethereum has a strong technical team that focuses on the crypto's overall growth and dominance. Vitalik Buterin also planned a strong marketing campaign to invite more investors. The primary difference between Bitcoin and Ethereum mining is that ERC-20 tokens are fungible.

Bottom Line

There are several other reasons apart from these which govern the greater ROI phenomenon of Ethereum. According to experts, Bitcoin's transaction fees have been in a poor state since the summer of 2021, with miners earning up to 1% of the BTC. Meanwhile, for Ethereum, the transaction fees make up a large of the miners' revenue. Their daily income varies exponentially, but it is inherently far more profitable than Bitcoin. Ether's transaction fees primarily depend on the demand of the network and with ETH 2.0's anticipated launch, crypto investors are excited about the future of Ethereum. Hence, it is safe to say that if you are someone who wishes to mine Ethereum, or are shifting from Bitcoin to Ether mining, make sure to explore all the pros and cons and then dive in for the rally.