Bitcoin Miners Say Mining Dogeoin and Litecoin Is More Profitable

Bitcoin miners are faced with the challenge of adjusting their business model after the BTC halving in April. BIT Mining now reports that it is also using equipment for Litecoin and Dogecoin, thereby increasing profits.

The Bitcoin halving in April hardly affected the price curve of BTC, but it significantly changed the business basis for miners. Since then, Bitcoin has only received 3.125 BTC for generating a block, previously it was 6.25. Even before the halving, it was therefore noticeable that Bitcoin miners were updating their hardware and thinking about takeovers. According to a press release, the listed company BIT Mining has followed a different strategy and has started mining not only Bitcoin, but also Dogecoin (DOGE) and Litecoin (LTC), as well as BEL.

And lo and behold: The expansion to Litecoin and Dogecoin has proven to be almost three times as profitable as Bitcoin mining alone, writes BIT Mining. Equipment that enables parallel mining is used for DOGE and LTC (and BEL). As of November 27, BIT Mining said it accounted for 1.32 percent of the hashrate in the Dogecoin and Litecoin networks.

The hashrate measures how much computing capacity is connected to networks such as Bitcoin. Blockchain data shows that the hashrate has not only risen to record levels for Bitcoin, but also for Dogecoin and Litecoin. This indicates strong competition.

Bitcoin miners face major challenges despite BTC rally

Bitcoin miners don’t like to reveal their detailed calculations. According to estimates, since the 2024 halving, Bitcoin prices of at least almost $40,000 are needed to run their business profitably. BIT Mining points to the takeover of Bee Computing in 2021, which enabled the company to produce its own hardware that is particularly energy efficient. The price of electricity is one of the main factors in Bitcoin mining and the reason why it is not worth becoming a BTC miner in Germany.

BIT Mining also quotes its vice president Youwei Yang, who highlights the recent rally of Litecoin and Dogecoin. The influence of “Dogefather” Elon Musk was evident there, as were upcoming changes to the regulatory environment due to Donald Trump’s election victory, according to Youwei Yang.

Dogecoin () has gained around 110 percent in the last 30 days, Litecoin almost 100 percent. Bitcoin has only gained 30 percent in the price curve in the same period, despite new all-time highs. BIT Mining is optimistic that LTC and DOGE will be able to maintain their momentum in the coming year.

Conclusion: Bitcoin Miner is multi-pronged and doing well – model of the future?

Other Bitcoin miners such as Hut 8 Mining see opportunities in making their highly sophisticated special computers available for services in the field of artificial intelligence (AI). It remains to be seen whether this will generate profits. BIT Mining is making its way by combining its own hardware and expanding the field of application of Bitcoin to include Litecoin and Dogecoin.

The BIT Mining share BTCM reacted cautiously positively with a good 10 percent increase to the news of increased profitability, but is miles away from the times when Bitcoin miners received twice or four times as many BTC per block as they do now.

This shows how keenly Bitcoin miners now have to calculate and allows the forecast: tough competition among the large professional crypto miners is encouraging the search for additional sources of income in addition to Bitcoin mining.

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(Featured image by Kanchanara via Unsplash)

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First published in BLOCK-BUILDERS.DE. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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