The Zcash privacy coin has become increasingly popular among miners due to its profitability compared to other cryptocurrencies. The coin’s hash rate has grown by over 400 percent since July last year, making mining Zcash more lucrative than mining Bitcoin or Ethereum. Many Zcash miners are still able to achieve near 100 percent profitability while mining the coin, making it an attractive option for those seeking higher returns.
However, the positive returns and growth of the Zcash network have led to a climbing inflation rate, currently at 0.1 percent daily. This inflation rate could pose a problem in the future as it may devalue the coins over time. There is an ongoing debate about whether implementing Harmony Mining in the upcoming Blossom upgrade could help address this issue by introducing dual proof-of-work capabilities to redistribute tokens and provide more mining options for Zcash miners. On the other hand, Bitcoin’s inflation rate is much lower at about 4 percent per annum, with mechanisms in place to regulate the supply and value of the cryptocurrency.
