As the second most popular cryptocurrency after Bitcoin, Ethereum has had a bit of a rollercoaster ride when it comes to its value. In the past year alone, Ethereum has gone from $180 per ETH to over $1300 per ETH.
That’s a huge increase in value and it doesn’t seem to be slowing down. So, what does this mean for miners?.
For those who don’t know, mining is how new ETH is created. Miners use their computer power to solve complex math problems and in return they are rewarded with ETH.
The amount of ETH rewarded for each block mined goes down over time as the Ethereum network gets bigger and bigger. This is called the “block reward.”.
Right now, the block reward is 3 ETH and it will go down to 2 ETH next year. So, if you’re a miner, you want to make sure you’re in a pool that is going to be profitable for you long-term. But, which pool is the most profitable?
Well, that really depends on a few factors. First, let’s look at the two main types of pools: Solo mining pools and PPLNS pools.
Solo mining pools are just what they sound like – you solo mine and keep all of the rewards for yourself. The downside of solo mining is that it can take a long time to find a block and get rewarded because you’re competing with everyone else on the network.
PPLNS pools are different in that they pay out based on the “last N shares” method. This means that even if you don’t find a block, you can still get rewarded for your work based on how many shares you’ve submitted.
The downside of this method is that it can be more difficult to predict your earnings because they fluctuate based on how many people are mining in the pool and how often blocks are found.
So, which type of pool is more profitable? It really depends on the current state of the Ethereum network. If blocks are being found frequently, then PPLNS pools will typically be more profitable.
However, if blocks are being found less frequently, Solo mining pools will usually be more profitable.
The other factor that comes into play is fees. Some pools charge a fee for their services while others do not.
typically, the pools that charge a fee are more likely to be profitable because they have lower overhead costs. However, this is not always the case so it’s important to do your own research before joining a pool.
To sum it up, there is no one “most profitable” mining pool for Ethereum. It really depends on a number of factors including: the current state of the network, fees charged by the pool, and overhead costs associated with running the pool.