In this post I briefly explain the mining industry, and argue that btc and xmr are sustainably dominant in their respective niches.

The sha256 hash algorithm (used to mine bitcoin) is the best algorithm for running on specialized hardware (asics) because its efficient and provides a huge advantage over generic compute. Conversely, the randomX algorithm (monero) is the best algorithm for running on generic hardware because it is asic resistant and therefore you don't have to compete against asic miners.

It would be very difficult for any other blockchain to use either of these algorithms because it would have to compete with its much larger rivel to incentivize miners, and it would be vulnerable to 51% attacks from the same hashrate it is trying to usurp. Bitcoin cash (bch) is a hard fork of bitcoin that attempts to use sha256 but both its hashrate and markets are inconsistent.

So bitcoin and monero control their respective algorithms. Much more power is devoted to sha256 mining by industrial mining operations, allowing it to secure a much greater market cap. Conversely, randomX is much harder to regulate because it does not have an industrial footprint, which affords monero the freedom to implement private transactions.

So why is bitcoin mining so unprofitable that miners can barely afford electricity and their fancy asics? Why is monero mining so unprofitable that hobbyists view it as charity? This is because miners compete with each other for discounted electricity at industrial scales.

Sha256 miners require discounted energy to run viable businesses, but they can operate anywhere and can power on or off at any time. This makes their demand for energy much more flexible than conventional demand from other applications, which changes the game in electricity markets because it provides demand for otherwise unusable energy. In practice, bitcoin miners sign contracts with electricity generators that entitles them to discounted energy under the condition of flexible allowances. This has even allowed some otherwise non-viable electricity ventures to survive and electrify remote regions of Africa.

Similarly, randomX makes botnets profitable by providing demand for stolen electricity running on generic compute. This is why its not profitable to mine at home because you are competing against these operators with huge swarms of zombies and no electricity bills. Compared to other malware attacks like ransomware or a data breach, randomX mining can be subtle, low impact, and go unnoticed for a long time.

(Read this post before??? Sorry it was reused from an old comment)

Further reading:

All about the bitcoin mining industry: The Bitcoin Miner's Almanac by Robert Warren
https://annas-archive.gl/md5/55aca5672781722755d166b49f68d3cf?&check=1

Some news about a randomx mining botnet:
https://www.scworld.com/news/prometei-botnet-monero

Compare Historical Hashrates:
https://bitinfocharts.com/comparison/hashrate-bch.html#alltime

Gridless: A bitcoin project electrifying remote regions in Africa:
https://gridlesscompute.com/