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September 20, 2021 (Investorideas.com Newswire) 2021 turned into a fantastic year for Dogecoin, as the memes-inspired cryptocurrency reached a record valuation and became one of the top ten cryptos by cap stock market. However, in addition to bringing significant returns on investment, Dogecoin’s mining profitability also increased in 2021.
According to data presented by BlockArabia.com, Dogecoin’s mining profitability has climbed 700% since the start of this year.
Dogecoin Mining Profitability Hits Six-Year High
Dogecoin has come a long way from its humble beginnings in 2013. The digital coin created as a memes-inspired joke has grown to become the ninth largest cryptocurrency in the world, with a market cap of $ 31 billion and a global fan base. . Its incredible growth over the past nine months has also attracted a record number of miners to its network.
Dogecoin’s blockchain network uses the same system to add new blocks to its decentralized ledger and come to an agreement between its network participants like Bitcoin, Litecoin, and many other cryptos. During mining, a computer tries to solve complex logic puzzles to verify transactions in the blockchain. Upon completion of this process, miners receive 10,000 DOGE Coins per block as a reward.
PCs with more computing power, or hashrate, are likely to solve more puzzles and mine more cryptocurrencies. But the profitability of the whole process also depends on electricity consumption, transaction costs and the efficiency of the equipment. While still significantly less competitive than Bitcoin mining, Dogecoin mining became increasingly profitable in 2021, peaking in six years.
According to data from BitInfoCharts, mining a single Dogecoin was worth a profit of 0.19 US cent in January. At the end of June, this figure jumped to 1.6 cents. Despite falling to 1.51 US cents last month, Dogecoin’s mining profitability has still jumped nearly 700% since the start of the year.
Dogecoin transaction fees soar 6,700% in 2021
BitInfoCharts data showed that transaction fees for Dogecoin mining also hit record highs this year. These fees refer to money paid to crypto miners to get transactions accepted. The cost increases as the number of users increases, as the blockchain has limited space available to process all transactions.
Therefore, the increase in transaction fees indicates the number of Dogecoin transactions waiting to be processed and is also an incentive to process large and more profitable transactions.
As of December 2020, the fee for a transaction involving Dogecoin was 0.19 US cent. Statistics indicate that this figure skyrocketed to 1.51 cents last month, showing a whopping 6,700% increase.
The full story can be read here: https://blockarabia.com/pr/dogecoin-mining-profitability-jumped-by-700-in-2021-transaction-fees-soared-by-6700/
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