Choosing between Bitcoin and Litecoin (LTC) mining starts with the equipment you can afford and operate. The two networks use different mining algorithms, so they require different categories of application-specific integrated circuit (ASIC) miners. Installation requirements depend on the specific machine, while reward calculations depend on the coin and mining pool.
For a useful comparison, shortlist a SHA-256 ASIC and a Scrypt ASIC that fit your budget and site. Then compare their upfront costs, electricity use, and estimated mining earnings using consistent assumptions. Neither path is automatically more profitable.
Start With the Algorithm and Compatible Hardware
Bitcoin uses SHA-256, while Litecoin uses Scrypt. For practical mining today, each calls for an ASIC designed for its algorithm. A SHA-256 ASIC cannot be repointed to mine Litecoin, and a Scrypt ASIC cannot be repointed to mine Bitcoin.
The algorithm determines which coins the hardware can mine; it does not limit the machine to one coin. Within this comparison, however, choosing between Bitcoin and LTC mining means choosing between these two ASIC categories.
Start by identifying machines you would actually consider buying. Compare their purchase prices and installation requirements before deciding which mining path fits your circumstances.
ViaBTC’s BTC mining guide and LTC mining guide provide examples of compatible miners and pool connection steps. Confirm the exact model’s specifications with its manufacturer before purchase.
Compare Electrical Requirements Before Revenue
Both SHA-256 and Scrypt ASICs need suitable power, ventilation, and space. The requirements vary by model, rather than following directly from the algorithm.
Voltage and circuit capacity. Check the manufacturer’s input-voltage range, current requirements, and power connections against the intended installation. Matching voltage alone does not establish that a circuit can support the machine continuously. For example, BITMAIN’s 16 GH/s Antminer L9, a Scrypt ASIC, specifies 220–277 V input and a maximum input current of 20 A. These are equipment specifications, not a recommendation to install it on any particular circuit.
Electricity cost. Wall power, operating hours, and the electricity tariff determine the machine’s electricity cost. Using the L9’s typical 3,360 W wall-power rating at 25°C:
- Daily electricity use: 3,360 ÷ 1,000 × 24 = 80.64 kWh/day.
- At $0.10/kWh: 80.64 × $0.10 = $8.064/day, or approximately $8.06/day.
This example assumes continuous operation at the stated power. It excludes separate cooling and other operating costs. Actual wall power can vary, and downtime changes mining output and electricity use depending on whether the machine remains powered.
Heat and noise. Air-cooled ASICs release most of their electrical input as heat and can be too loud for a living space. BITMAIN lists the L9 at 75 dBA at 25°C, with the fans at maximum speed. Check ventilation and noise requirements when comparing home mining with hosting.
The figures above come from BITMAIN’s L9 specifications. They illustrate how to assess a machine, rather than recommending the L9 or predicting its profitability.
Compare Earnings Using Consistent Assumptions
A calculator helps estimate mining earnings, but each candidate machine needs its own inputs. Use a consistent comparison time and cost basis, and record:
- Each machine’s purchase price, hashrate, and rated or measured wall power.
- Electricity price in $/kWh, or the applicable hosting charges.
- Each network’s difficulty and each reward coin’s market price at the comparison time.
- The intended pool payout method and applicable fees.
- Expected uptime.
- Which merged-mining rewards are included for each setup.
The difficulty values and machine specifications will differ. Consistency means comparing the setups under clearly stated assumptions, not entering identical values for different networks or hardware.
ViaBTC’s profit calculator estimates mining earnings using inputs such as difficulty, coin price, pool fee rate, and valid hashrate. Its calculation documentation explains that the BTC PPS+ estimate uses the selected difficulty and the previous day’s average transaction fees. Actual rewards can differ.
Treat estimated mining earnings separately from operating profit. Subtract electricity and other operating costs where the calculator has not already included them. Do not deduct pool fees twice if the earnings estimate is already net of those fees, or add electricity again when it is included in a hosting charge.
A positive daily operating result does not establish that the machine will recover its purchase and setup costs. Compare those upfront costs too, and avoid treating a payback estimate based on today’s conditions as a promise.
Keep coin-denominated rewards separate from their fiat value. A higher BTC price increases the dollar value of a given BTC reward; it does not, by itself, increase the amount of BTC mined.
Finally, SHA-256 hashrate in TH/s and Scrypt hashrate in GH/s cannot be used as a direct profitability ranking. They measure different hashing operations. Compare estimated earnings and costs for each machine instead.
Payout Method Affects Variability and Net Earnings
A mining pool’s payout method determines how it calculates rewards. The associated fees also affect what the miner receives after deductions.
ViaBTC’s current calculation rules describe two methods:
- PPS+ (Pay Per Share Plus) is the default. The block-subsidy component uses PPS, paying for accepted work based on the applicable network difficulty. Transaction fees use PPLNS. The documented pool fees are 4% on the subsidy component and 2% on the transaction-fee component.
- PPLNS (Pay Per Last N Shares) distributes both the block subsidy and transaction fees according to the miner’s contribution within the pool’s defined recent work window. The documented fee is 2%, and rewards vary with the pool’s block-finding luck.
PPS+ makes the subsidy component more predictable over short periods, while PPLNS combines a lower documented subsidy fee with more variable rewards. Neither guarantees a particular return. Electricity and equipment costs remain separate from this choice.
These fee rates are ViaBTC’s documented rules; check the applicable rules when evaluating another pool. Also distinguish the payout method for the primary coin from the rules for merged-mined rewards.
Include Merged-Mining Rewards on Both Sides
Merged mining allows the same hashing work to contribute to more than one compatible blockchain. Dogecoin introduced support for this in 2014, enabling Litecoin miners to contribute to Dogecoin mining with the same Scrypt work. Dogecoin’s mining guide explains this relationship.
At ViaBTC, miners connected to the LTC pool under PPS+ or PPLNS automatically receive DOGE rewards without additional mining configuration. However, DOGE rewards are distributed using PPLNS even when the miner selects PPS+ for LTC, so those rewards remain variable. This also applies to the other LTC merged-mining assets currently listed in ViaBTC’s dedicated tutorial.
Merged mining is not exclusive to Litecoin. ViaBTC’s merged-mining guide also lists NMC and FB rewards for BTC miners. The comparison should therefore account for the supported assets and distribution rules on both sides.
Reusing the same hashing work can produce additional rewards without a second ASIC performing a separate mining workload. That does not guarantee a fixed amount or fiat value. Before including these rewards in an estimate, check the pool’s current supported assets, reward calculation, withdrawal options, and applicable fees. Confirm whether the calculator already includes them so they are not counted twice.
A Practical Decision Framework
For a first purchase, work through the comparison in this order:
- Shortlist compatible machines. Identify SHA-256 and Scrypt models within your total purchase and setup budget.
- Check the installation. Confirm each model’s voltage, current, power connections, wall power, cooling needs, and noise level against the intended site.
- Calculate operating costs. Use realistic operating hours and your electricity tariff or hosting terms, including any separate cooling or maintenance costs.
- Estimate earnings at the same comparison time. Use each machine’s hashrate, the relevant network difficulties, coin prices, payout method, and fees.
- Check merged-mining rewards for both setups. Confirm which rewards are included and how the pool calculates them.
- Compare the result with upfront costs. Consider whether the estimated operating surplus justifies the purchase and setup expense, and how the result changes if prices fall or difficulty rises.
Choose based on the specific machine and operating conditions. If neither setup fits your site or produces an acceptable estimate under realistic assumptions, postponing the purchase is also an option.
FAQ
Can the same ASIC mine both Bitcoin and Litecoin?
A standard SHA-256 ASIC cannot switch to Litecoin’s Scrypt algorithm, and a Scrypt ASIC cannot switch to Bitcoin’s SHA-256 algorithm. Each requires compatible hardware.
Does a higher hashrate mean a more profitable miner?
Not by itself. Within the same algorithm, evaluate hashrate alongside power use, electricity costs, network difficulty, pool fees, and purchase price. Across SHA-256 and Scrypt, numerical hashrates do not directly compare mining performance or profitability.
Does merged mining automatically make LTC mining more profitable than Bitcoin mining?
No. Both paths can provide merged-mining rewards where the pool supports them. Compare the full estimated reward mix and operating costs for each candidate machine.
Should I choose PPS+ or PPLNS based on which pays more?
Consider both fees and reward variability. At ViaBTC, PPS+ makes the subsidy component more predictable, while PPLNS has a lower documented subsidy fee and greater exposure to pool luck. LTC merged-mining rewards such as DOGE still use PPLNS even if you select PPS+ for LTC.
What should I check before buying an ASIC?
Check the total purchase and setup cost, the manufacturer’s electrical requirements, wall power, heat and noise, and the pool’s reward rules. Compare estimated earnings after operating costs, then consider whether those earnings could recover the upfront expense under changing mining conditions.