Bitcoin vs Zcash: Grayscale Reveals Which Is More Profitable to Mine

Grayscale Research has released an analysis comparing the profitability of mining Bitcoin (BTC) and Zcash (ZEC) for individual operators. While Bitcoin dominates in overall network scale, Zcash offers higher returns per machine and per unit of electricity.

Scale vs. Efficiency

Bitcoin miners collectively earn about $35 million in daily rewards, far exceeding the roughly $2 million generated by Zcash miners. This reflects Bitcoin’s much larger network hashrate.

At the individual level, a typical Zcash mining rig produces roughly twice the daily revenue of a comparable Bitcoin rig. When measured by power consumption, Zcash mining yields about four times the revenue per megawatt‑hour compared to Bitcoin.

Factors Driving Zcash Profitability

• ZEC’s price recently rose above $1,000, trading near $1,177 and up nearly 15 % over the past week.
• Higher prices have attracted additional mining capacity, with Zcash’s total hashrate increasing more than 2.5 × year‑to‑date.

Limitations of Direct Comparison

Bitcoin and Zcash use different mining hardware: Bitcoin relies on SHA‑256 ASICs, while Zcash uses Equihash‑optimized machines. Operators cannot simply switch equipment between the two networks.

The analysis measures revenue, not net profit. Actual earnings depend on electricity costs, hardware expenses, cooling, and maintenance.

Market Context

Zcash represents roughly 1 % of Bitcoin’s market capitalization and exhibits about 140 % price volatility.

Grayscale has also launched a Zcash spot ETF (ZCSH) on NYSE Arca, which accumulated over $500 million in assets within two weeks of listing.

Risks and Outlook

Mining profitability remains volatile. Changes in network difficulty, electricity prices, and asset price swings can quickly alter the economic landscape for both Bitcoin and Zcash miners.