May 2nd 2022
Mining ether is more profitable than mining bitcoin
Bitcoin is twice as big as ether by market cap. Nevertheless, ether miners have consistently earned more than bitcoin miners since the beginning of 2021. Why?
Source: CoinMetrics. *7-day average
To understand why ether miners' revenue is higher than bitcoin miners', we must understand the differences in ether and bitcoin mining economics.
Most of the bitcoin miners' revenue come from the block subsidy, at 6.25 bitcoin per block. Bitcoin transaction fees have been minuscule since the summer of 2021, only making up around 1% of miner revenues, while the rest comes from the block subsidy.