Written by Jaran Mellerud

The crypto mining industry has undergone extraordinary changes over the past 15 years, and it continues to evolve relentlessly. For miners, staying ahead of these shifts isn’t just a matter of gaining a competitive edge—it’s essential for ensuring long-term success.

One of the key questions many miners are grappling with today is whether they should focus exclusively on Bitcoin or diversify into mining other cryptocurrencies. This article is here to address that very question.

I’ll share a bold prediction about the future of mining: Bitcoin will not only sustain its dominance in the cryptocurrency market but will also emerge as the sole coin worth mining. Read on to understand why this monumental shift is inevitable and what it means for the mining industry.

Let’s start with an overview of the crypto-mining industry. While Bitcoin remains the most prominent cryptocurrency for mining, miners today have around 90 other options, commonly called “altcoins.” These coins share a fundamental trait: they operate on the Proof-of-Work (PoW) consensus mechanism, which requires computational power to validate transactions and add new blocks to the blockchain.

Notable altcoins for mining include Dogecoin, Bitcoin Cash, Litecoin, Kaspa, Ethereum Classic, Monero, and Bitcoin SV. Historically, certain altcoins—notably Ethereum—offered miners significant revenue streams. However, for various reasons we’ll explore, the profitability and overall viability of altcoin mining are rapidly declining.

Data reveals a clear trend: Bitcoin has been steadily consolidating its dominance within the crypto-mining market, and this trajectory shows no signs of slowing down.

The chart below illustrates the market capitalization trends of Bitcoin compared to all other Proof-of-Work (PoW) coins. Let’s dive into this historical progression.

In 2017 and 2018, the combined market cap of PoW altcoins nearly matched that of bitcoin. This period marked a surge in the launch of new PoW coins, fueled by a widespread belief in the potential utility of altcoins. For example, the idea that Litecoin could serve as “silver to Bitcoin’s gold” was a widely held sentiment. Additionally, PoW was the dominant consensus algorithm, as the Proof-of-Stake (PoS) model had yet to gain the popularity it enjoys today.

However, the market soon experienced a dramatic shift. The bear market of 2020 nearly wiped out many of the major PoW coins from 2017. Then came the bull market of 2021, which saw a brief resurgence in altcoin mining, particularly due to Ethereum’s impressive performance. But that was short-lived, as Ethereum transitioned from PoW to PoS in late 2022, effectively killing the PoW altcoin market.

With almost all remaining PoW coins performing poorly compared to Bitcoin, the altcoin mining landscape was left struggling.

In 2024, there has been a slight resurgence in the PoW altcoin market, with Dogecoin seeing strong performance and newer names like Kaspa (KAS) and Alephium (ALPH) gaining attention.

While Dogecoin benefits from its historical reputation and the backing of billionaires like Elon Musk, I remain sceptical about newer PoW coins like KAS and ALPH. We've seen similar patterns before—PoW altcoins being launched, pumped to unsustainable heights, and then quickly dumped, as with coins like Kadena (KDA). It wouldn’t be surprising if KAS and ALPH met the same fate.

Currently, Bitcoin’s market capitalization is a staggering 24 times larger than the combined market cap of all PoW altcoins, and this gap continues to grow. Fewer new cryptocurrencies are being launched overall, with most new projects favouring the non-mineable PoS model. Meanwhile, the PoW dinosaur coins are languishing, and most are likely to disappear in the near future.

While Bitcoin remains the undisputed leader, the rise and fall of altcoins over the years has highlighted a key truth:

Mining other cryptocurrencies is becoming less viable as Bitcoin continues to dominate. The industry shift from PoW to PoS, combined with the diminishing relevance of many PoW dinosaurs, has made it increasingly clear that Bitcoin will remain the most profitable and sustainable choice for miners in the foreseeable future.

As Bitcoin’s market cap continues to widen its gap over existing PoW altcoins, and with fewer new PoW altcoins launching, it’s becoming evident that the focus for miners should be on Bitcoin.

While altcoins may offer brief opportunities, the long-term prospects seem uncertain, and many will likely fade away.

For miners seeking stability and success in the evolving market, focusing on Bitcoin mining isn’t just an option—it’s the only clear path forward.

As our friend Michael Saylor says: “There is no second best”.
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