- Zcash miners earn roughly twice Bitcoin’s rewards per rig and four times more per MWh, despite a smaller total reward pool.
- Zcash mining power has increased more than 2.5X this year as higher ZEC prices improve mining profitability.
- Bitcoin miners earn about $35M daily versus $2M for Zcash, highlighting the difference between total and per-operation rewards.
Zcash mining rewards have reached about $2 million daily, compared with $35 million for Bitcoin, according to Grayscale Research. Zach Pandl, Grayscale’s Head of Research, said Zcash miners earn about twice Bitcoin rewards per rig and four times more per MWh, while activity has risen 2.5 times this year.
Zcash Mining Gains Ground on Profitability
The two networks use proof-of-work mining to secure their blockchains. Specialized computers solve computational challenges, produce hashes, and compare results with network targets. However, Grayscale found that Zcash mining offers higher rewards for individual miners.
The research estimates returns at roughly twice Bitcoin levels per mining rig each day. Zcash also delivers about four times higher rewards per megawatt hour, or MWh. Meanwhile, the mining machines used by Zcash and Bitcoin cannot operate interchangeably.
Grayscale also compared Zcash mining with other computing uses. According to the research, Zcash currently offers higher returns per MWh than certain AI and high-performance computing cloud services.
Zcash Mining Activity Rises 2.5X
The higher mining profitability has coincided with a sharp rise in Zcash mining activity. Grayscale said total Zcash mining power has increased more than 2.5 times this year. The research connected that increase with Zcash’s token price performance.
Higher token prices raise the value of mining rewards, making mining more profitable for operators. Despite that growth, Bitcoin still produces a much larger aggregate mining reward. Bitcoin miners receive about $35 million daily, compared with roughly $2 million for Zcash miners.
That gap separates total network rewards from returns available to individual mining operations. Zcash has the smaller reward pool, yet produces higher rewards per rig and MWh.
Zcash Shares Bitcoin’s Proof-of-Work Model
Pandl described Zcash as a Bitcoin-like digital currency with additional privacy features. Both networks use proof-of-work, although their specific mining details differ. On both networks, miners compete to solve computational challenges and update the blockchain. Their systems also adjust targets to maintain roughly steady block times.
Grayscale said higher mining profitability has encouraged more Zcash mining activity. The research also linked greater mining activity with stronger network security through the proof-of-work system.
