Ethereum mining has been more profitable than Bitcoin due to the cryptocurrency's record high transaction costs, and its soaring price levels of late according to a latest report.
The Block's Data Dashboard showed that Ethereum miners' daily revenue have skyrocketed, making $77 million as of Monday as against the $67 million Bitcoin miners make. The Block further said that the figure reflects its seven-day moving average (7MDA), which shows a short-term trend.
Throughout the immense surge of Ethereum, miners of the cryptocurrency have earned more than Bitcoin miners in recent months, and it has been the continuing trend.
Ethereum Miners Earn From Transaction Fees, Subsidies
A continuing rise in Ether's price from $730 to $4,300 over the weekend has been quite a factor. Add to that the Ethereum network's unprecedentedly high transaction fees, wherein miners earn 40 percent of their revenue and subsidies from making new coins.
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Miners earnings, however, are bound to change drastically when the Ethereum Improvement Proposal (EIP) 1559 is enacted in July, which will funnel part of the transaction fees straight to the network instead of ending up in the miners' hands.
These changes in the network's fee structure was meant to lower transaction fees for users. Here, the base fee would be "burned," with miners just receiving an inclusion fee--a glaring revenue downturn in the coming months, Benzinga noted in a report.
Ethereum Mining Boom, Ethereum Value Rise Continues
But it seems miners would not mind, given the continued robust stature Ethereum enjoys at present. With returns reaching 100 percent in April, there seems to be more to expect in the short term.
Experts had Ethereum price predictions to reach $10,000 a coin by yearend.
In contrast, Bitcoin's price has stagnated, staying at $54,528 in the past week, as Benziga reported.
With this, it becomes apparent that mining for Ethereum, or other cryptocurrencies for that matter, is the hottest career nowadays as the cryptocash gold rush continues.
How does one get into cryptomining?
How to Become an Ethereum Miner
These "miners" are actually situated all around the world verifying and adding all cryptocurrency exchanges in a public ledger, called the blockchain, CNBC revealed. After a transaction is appended to the blockchain, it is permanently on record.
To log these transactions, miners use a computer application that processes millions of math equations, which they do in competition with other miners all around the globe to be the first to verify a transaction block.
A miner would triumph in this race after every 13 seconds, with the winner getting two newly minted ether and a transaction fee.
Their computer program is run on a high-powered computer system called a mining rig, which is composed of a graphics processing unit, motherboard, and memory cards. This system computes around 27 million math equations per second.
With trillions of math equations processed every second around the world, miners form what they call a mining pool, combining all the computing power in a single network, sharing resources to process the equations.
They would then create a digital cryptocash wallet to connect to the network, which is set to receive amounts within minutes.
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