A Shift in Cryptocurrency Mining Landscape: From SHA256 to Kheavyhash

Over the span of sixteen months, from September 2022 to January 2024, the cryptocurrency mining profitability landscape has experienced a remarkable transformation. The Bitcoin SHA256 algorithm, once ranking as the seventh most profitable for mining in September 2022, has now ascended to the third position in terms of profitability by January 2024.

Kheavyhash Takes the Lead

As of January 2024, the most profitable proof-of-work (PoW) algorithm is Kheavyhash. Operated by kaspa (KKAS), Kheavyhash offers miners an impressive yield of approximately $69 per day. This projection is based on specific hashpower and electricity cost assumptions.

Grin and Bitcoin Follow Suit

Following Kheavyhash in profitability are Grin (GRIN) and Bitcoin. Utilizing the Cuckatoo32 algorithm, GRIN secured its position in the profitable mining landscape. Bitcoin, maintaining its relevance with the SHA256 algorithm, has also held its ground.

Other Noteworthy Algorithms

Among other profitable mining algorithms are Ethash and Blake2B-Sia. Ethash is linked with ethereum classic (ETC), while Blake2B-Sia can mine siacoin (SC) and scprime (SCP). Mining algorithms such as X11 and Kadena also offer satisfactory returns.

Scrypt’s Fall in Profitability

However, the profitability of Scrypt mining has seen a decline, making it the 12th most profitable algorithm as of the report. This comes after Scrypt’s peak position in September 2022. Ethash’s profitability change is also worth noting. It held a dominant position prior to The Merge upgrade of Ethereum on September 15, 2022, which has since impacted its mining profitability.

Bitcoin Mining Becomes More Feasible

The article also sheds light on the recent 3.9% decrease in Bitcoin’s mining difficulty, making it more feasible for miners. It offers statistics on the present mining entities, their hashrates, and the total network hashrate. The piece also underlines the reduction in hashpower due to scaled-back operations in Texas.