Thread 🧵 on Proof of Work mining returns:
How is Mining profits for top 20 POW crypto? Are coins market cap reflected by the amount of mining profits? How much does BTC generates compared to other coins?
i did all the math and we have some shocking findings !
First of all, i looked into the top 20 Proof of work crypto coins and i divided them into 3 groups :
1️⃣ Coins mined purely by Asics 2️⃣ Coins mined by GPUs and Asics 3️⃣ Coins mined CPU and HDD only
as these are the top machines used to mine crypto today.
1️⃣ Coins mined by Asics :
from the top 20 coins there are 10 mined by Asics and they generate more than19,180,000 per day thats 95% of the daily returns of all POW coins. coins like BTC Doge LTC dominates the category.
2️⃣ Coins mined by GPUs and Asics:
8 coins generates more than 865,000 per day equivalent to 4.3% of the daily POW returns. on the other hand these coins count for only 1.43% of the top 20 market cap leading to a conclusion that they may be undervalued.
3️⃣ Coins mined CPU and HDD only: only XMR and XCH in this category both generates 89,640 daily with a joint market cap of 2.76 bil. Monero can be mined with CPU and chia use the proof of space via hard drives.
Why market Cap is important in crypto? market cap is often the first measure investors look at when evaluating digital assets. The reason is simple: It's the best way to gauge how investors size up the fortunes of a project.
As a key statistic, it can also indicate the growth potential of a cryptocurrency and whether it is safe to buy, compared to others. Market cap allows you to compare the total value of one cryptocurrency with another.
Now lets see the Full Table of the top 20 POW by market cap.
Top 20 POW:
BTC generates more than 17.3 mil daily that's 86.7% of the total returns of POW coins and its the biggest crypto by market cap in the world.
Doge comes as 2nd biggest crypto POW coin with
858k per day and a market cap above 8bil. both are mined with Asics
GPU miners have ETC as the biggest coin, generating 387k per day with market cap of
the surprise here is ZEC generating more than 149k per day as the 5th most returning coin in the list but it sits ranked 9 in POW list and ranked 69 overall in crypto market cap.
only monero made the top 20 POW list as a CPU mining coin generating 61k per day with a market cap of 2.5B
XMR is an old blockchain and it offers a high level of anonymity for users and their transactions.
one other surprising fact we found in this table is Chia , it ranked 16 out 20 top POW coins but it generates more than 143K daily, making it the 6th best POW coin in daily mining returns. XCH
Conclusion: • Market cap is definitely not directly related to mining rewards even for the matured networks, it has so many other factors that have to be in line. • Trading volumes attracted by listing coins in leading crypto exchange are key to push coins market cap.
• networks with leading tech with respected founders and top rated developers may not have the ultimate success if they don't invest heavily in social media and marketing, in my opinion so many amazing networks don't get recognize because of this matter alone.
• one factor that i couldn't add to this table is number of developers working on the network, there is no official source of this information. i think this would be a good indicator of how networks can attract more investment if they have more devs working on network.
this is my small research, if you like it please feel free to share it however you like. please feel free to DM me or reply to this thread if you think i miss some information, the table can be edited and republished.
You can read the unrolled version of this thread here:
this twitter thread.