Mining cryptocurrencies is often considered wasteful and bad for the environment. However, many people are interested in mining Dogecoin, as one can do so with any computer. That helps explain why the network hit a new all-time high network hashrate not too long ago.
Dogecoin Hashrate Soars
It is a very rough climate for crypto miners today. Directing hashpower to Bitcoin is very energy-intensive and not necessarily profitable. Ethereum switched to proof-of-stake, forcing miners to find a new home. Dogecoin, the popular meme coin, has seen tremendous network growth over the past year. Although its hashrate hasn’t doubled, there is a steep overall increase.
In early January 2022, the Dogecoin hashrate was well below 350 terahash/second. Today, it sits above 585 terahash/second. The popular meme coin continues to attract people who want to mine crypto. It is very accessible, as pools let users mine through their browser or by installing a small application. Unlike other networks, Dogecoin’s mining algorithm is hardware-friendly, although users face stiff network competition for rewards.
One may wonder why there is such an interest in Dogecoin mining these days. The meme coin is the talk of the town since Elon Musk took over Twitter. Many community members expect the social platform to integrate DOGE for payments and tips. There is no indication that will happen, but hype and speculation are part of the game for meme coins. That alone won’t be enough to push the hashrate so high throughout 2022.
DOGE Is Profitable To Mine
One crucial factor is overall mining profitability. The higher the returns, the more people will mine DOGE. So far, Dogecoin has a profitability of over $2.28 per 1 gigahash/second of mining power direct at the network. Achieving a gigahash isn’t too challenging for most people, although it may require some hardware setup. However, with such a steep profit, it is hard to pass on this opportunity. The high profitability of over $3.5 per gigahash in late October 2022 remains out of reach, though.
Unlike Bitcoin, Dogecoin has no maximum supply cap. Miners can generate an infinite amount of DOGE through these operations. As long as demand keeps up, it will remain profitable to increase the Dogecoin hashrate. However, momentum can sour at any time, making this a rather tricky and risky endeavor.