Introduction
In September 2022, Bitcoin's SHA256 algorithm ranked as the seventh most lucrative proof-of-work (PoW) network for mining. Fast forward a year and four months, and this algorithm has ascended to become the third most profitable crypto network for mining operations.
2022 to 2024 Sees Significant Shifts in Crypto Mining Profitability
As of January 2024, the ranking of the most profitable crypto networks for mining has evolved from what it was in 2022. Back in September 2022, Kadena stood at the forefront as the leading mineable proof-of-work (PoW) algorithm, enabling miners to extract kadena (KDA). However, today, the top spot for the most lucrative PoW network for mining is held by kaspa (KAS), which utilizes the Kheavyhash algorithm.
Kaspa (KAS) Takes the Lead
On Sunday, Jan. 21, mining with 9.2 terahash per second (TH/s) of Kheavyhash hashpower is reported to yield roughly $69 per day, based on current data from asicminervalue.com. This includes the daily electricity expense rate of $0.12 per kilowatt hour (kWh). Currently, Bitcoin's SHA256 occupies the second spot in terms of profitability, yet the recent surge in grin (GRIN) values has elevated the Cuckatoo32 algorithm in terms of earnings.
Grin (GRIN) and Bitcoin's SHA256 Algorithm
Operating under the same electrical cost of $0.12 per kWh, a miner with a capacity of 36 graphs per second (GPS) can achieve a daily profit of $12.29 mining GRIN. Following closely is the SHA256 algorithm of Bitcoin, where machines with hashpower ranging from 335 to 390 terahash per second (TH/s) could yield daily earnings of $10.60 to $11.52, assuming an electricity rate of $0.12 per kWh. The leading producers of these high hashrate-producing devices are Bitmain and Microbt.
Ethash and Blake2B-Sia Algorithms
In 2024, the next two most profitable mining algorithms are Ethash and Blake2B-Sia. Ethash is linked with cryptocurrencies such as ethereum classic (ETC), while miners capable of handling Blake2B-Sia can extract siacoin (SC) and scprime (SCP). An Ethash hashrate of nearly 6 gigahash per second (GH/s) is estimated to yield around $10.40 daily, whereas 17 terahash per second (TH/s) of Blake2B-Sia mining power can generate about $9.27 each day, factoring in electricity costs of $0.12 per kilowatt hour (kWh).
X11 and Kadena Algorithms
Following Blake2B-Sia in the profitability ranking are the algorithms X11 and Kadena. X11 mineable currencies, including dash (DASH) and cannabiscoin (CANN), can yield a decent return with the right hashrate. Specifically, nearly 2 terahash per second (TH/s) of X11 hashrate is estimated to generate about $7.57 daily. As previously mentioned, the Kadena algorithm has dropped in the ranking, but a substantial 177 TH/s of Kadena hashrate can still produce an estimated $7.47 per day.
Diminishing Profitability of Scrypt Mining
Interestingly, the profitability of Scrypt mining has diminished compared to its peak in September 2022. Scrypt, which mines litecoin (LTC) and dogecoin (DOGE), was the second most profitable consensus algorithm at that time. Today, Scrypt mining ranks as the 12th most profitable algorithm, trailing behind others such as Handshake, 2, Randomx, and Cryptonightr. Ethash previously held a dominant position in mining algorithms before the Ethereum upgrade, known as The Merge, which occurred on Sept. 15, 2022. Since that pivotal event, its profitability has been relatively lackluster.
Conclusion
As the crypto mining landscape continues to evolve, different algorithms rise and fall in terms of profitability. The top mineable consensus algorithms in 2024 include Kaspa (KAS) with the Kheavyhash algorithm, Bitcoin's SHA256 algorithm, Ethash, Blake2B-Sia, X11, and Kadena. It will be interesting to see how these rankings change in the future as the crypto market continues to mature. What do you think about the top mineable consensus algorithms? Let us know what you think about this subject in the comments section below.
Frequently Asked Questions
Should you open a Precious Metal IRA
This depends on what your investment goal is and how risk-tolerant you are.
Register now if you want to save money for retirement.
This is because precious metals are more likely to appreciate in the future. They can also be used to diversify.
Furthermore, the prices of gold and silver tend to move together. They are therefore a better option for investing in both assets.
If you're not planning on using your money for retirement or don't want to take any risks, you probably shouldn't invest in precious metal IRAs.
Is a gold IRA worth interest?
It depends on how many dollars you put into it. If your income is $100,000, then yes. If you have less than $100,000, then no.
The amount you invest in an IRA affects its ability to earn interest.
If you invest more than $100,000 each year in retirement savings, you may want to open a regular brokerage instead.
While you may earn more interest there than elsewhere, you are also exposed to more risky investments. You don't want your entire portfolio to go bankrupt if the stock markets crash.
An IRA may be better for you if your annual income is less than $100,000. At least until the market starts growing again.
Can you make money in a gold IRA
To make money from an investment you must first understand how it works and secondly what products are available.
Trading should not be started if you don’t have sufficient information.
Also, you should find the broker that provides the best service possible for your account type.
Many different accounts are available, including standard IRAs and Roth IRAs.
If you have any other investments such stocks or bonds, you may want to consider a rollover.
What precious metals are permitted in an IRA
Gold is the most popular precious metal for IRA accounts. Investments in gold bullion coins or bars can be made as well.
Precious metals can be considered safe investments as they don't lose their value over time. Precious metals are also great for diversifying an investment portfolio.
Precious metals are silver, palladium, and platinum. These metals all share similar properties. Each one has its own uses.
Platinum is used to make jewelry, for example. The catalysts are made from palladium. To produce coins, silver can be used.
When deciding which precious metal to choose, consider how much you expect to spend on your gold. A lower-cost ounce of gold might be a better option.
You need to decide if you want your investment to remain private. If you have the desire to keep your investment private, palladium might be the best choice.
Palladium can be more valuable than gold. It's also more rare than gold. It's likely that you will have to pay more.
When choosing between gold or silver, another important aspect is the storage fees. You store gold by weight. For larger quantities of gold, you will be charged a higher storage fee.
Silver is measured in volume. Silver is priced by volume. You will pay less to store smaller amounts.
Keep in mind all IRS rules when you store precious metals inside an IRA. This includes keeping track, and reporting to the IRS, all transactions.
Statistics
- The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (forbes.com)
- Depending on your financial situation, most experts recommend you invest no more than 5% to 10% of your retirement funds in precious metals. (forbes.com)
- SEP-IRA”Simplified employee pension” For self-employed people like independent contractors, freelancers, and small-business ownersSame tax rules as traditional IRASEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less4. (sltrib.com)
- The maximum yearly contribution to an individual's IRAs is currently $6,000 ($7,000 for those 50 years or older), or 100% of earned income, whichever is less. (monex.com)
External Links
investopedia.com
forbes.com
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
kitco.com
en.wikipedia.org
How To
How to Buy Gold For Your Gold IRA
The term precious metal refers to gold, silver, palladium and rhodium. It's any element naturally occurring with atomic numbers 79 to 110 (excluding helium), that is valued for its rarity or beauty. Precious metals include gold and silver. Precious metals are often used as money, jewelry, industrial goods, and art objects.
Gold prices fluctuate daily because of supply and demande. There has been a significant demand for precious metals over the past decade as investors look for safe havens in unstable economies. Prices have increased significantly because of this demand. Some are concerned about the increased cost of production and have resisted investing in precious materials.
Because gold is rare and durable, it makes a good investment. Gold never loses its value, unlike other investments. You can also sell or buy gold without paying any taxes. There are two methods to invest gold. You have two options: you can buy gold bars and coins, or you can invest in futures contracts.
You can instantly have liquidity with physical gold bars and coins. They're easy to trade and store. But they don't offer much protection against inflation. If you want to protect yourself from rising prices, consider purchasing gold bullion. Bullion is physical gold that comes in different sizes and shapes. Some billions come in one-ounce pieces, while others come in larger sizes like kilo bars. Bullion is stored in vaults that are protected against theft and fire.
If you prefer owning shares of gold rather than holding actual gold, you should consider buying gold futures. Futures let investors speculate on the future price of gold. You can purchase gold futures to get exposure to the gold price, but not the actual commodity.
For example, if I wanted to speculate on whether the price of gold would go up or down, I could purchase a gold contract. My position at the expiration of the contract will be either “long-term” or “short-term.” A long contract means that I believe the price of gold will go higher, so I'm willing to give someone else money now in exchange for a promise that I'll get more money later when the contract ends. A shorter contract would mean that I believe the gold price will fall. I'm willing now to accept the money in exchange for the promise of making less later.
I'll get the contract's specified amount of gold plus interest when it expires. This way I have exposure to the gold's price without having to actually hold it.
Precious metals are great investments because they're extremely hard to counterfeit. Paper currencies can be easily faked by printing new bills. Precious metals are not easy to counterfeit. This is why precious metals have always held their value well over time.
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