Grayscale estimates that Zcash mining rewards run roughly twice Bitcoin's per machine and about four times higher per unit of electricity. The firm links strong ZEC prices to more mining activity and ties that expansion to stronger network security.
Zcash miners can earn roughly twice the daily rewards per machine compared with Bitcoin miners, according to Grayscale's latest estimates. Grayscale Head of Research Zach Pandl laid out the comparison in a Sept. 11 analysis, tying stronger token prices to higher mining rewards. The firm puts Zcash's advantage at roughly four times Bitcoin's rewards per megawatt-hour of electricity.
According to Pandl: "At current valuations, Zcash mining can be highly profitable." He added that this is encouraging more mining activity, which in turn supports network security. Both networks rely on proof-of-work mining, where specialized computers compete to earn rewards and add blocks of transactions.
Grayscale argues that higher Zcash prices draw more computing power to the network, and that this may help sustain higher prices in turn. Zcash mining activity has grown to more than 2.5 times its level at the start of the year, Grayscale says.
Equipment and Electricity Costs Shape the Comparison
Grayscale's math uses the Bitmain S23 Hydro for Bitcoin and the Bitmain Z15 Pro for Zcash. Its calculations assume electricity at $0.05 per kilowatt-hour, full uptime, and zero transaction fees, using data as of Sept. 9. The figures exclude pool fees, cooling, other operating expenses, and equipment depreciation, so those costs still shape an operator's final profit. Neither machine can switch between the two networks, which limits how quickly operators can respond to shifting rewards.
The improvement in Zcash mining economics was already visible as the token approached $1,000 earlier this month. On Sept. 3, ZEC reached an intraday high of $979, with mining power near its record. Equipment profitability estimates from that date used electricity at $0.10 per kilowatt-hour, twice the rate Grayscale assumes. ZEC traded at $1,123.25 at press time.
Bitcoin Still Pays Out the Larger Reward Pool
Bitcoin still distributes far more money across its network overall, despite Zcash's edge in Grayscale's machine-level comparison. The firm puts aggregate Bitcoin miner rewards at roughly $35 million daily, against roughly $2 million for Zcash. That gap separates the size of each network's total reward pool from the estimated earnings of a single machine.
Grayscale's mining assessment follows growth in its own Zcash investment product, which surpassed $500 million in assets by Sept. 8 after listing on NYSE Arca on Aug. 25. The fund has drawn more than $70 million in cumulative outside inflows, alongside a roughly $100 million in-kind investment from a Digital Currency Group affiliate.
Source: Grayscale
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