For many years, ASIC Mining has been the most efficient way to acquire cryptocurrencies.
Since Canaan’s first ASIC miner in 2013, offering the biggest leap in efficiency and simplicity, many manufacturers have entered the technology race to produce the most efficient ASIC rigs. Those serious about cryptocurrency mining now enjoy a wealth of options when it comes to choosing their ASIC miner.
Initially seen as an investment only available to those with a lot of money, ASIC rigs have now become affordable and viable for smaller investors.
As the knowledge and interest in cryptocurrencies continue to grow, even the non-tech savvy are wondering if ASIC mining is worth pursuing. Today’s article is going to let you know more about ASIC Mining.
What is an ASIC miner?
ASIC miner – or Application Specific Integrated Circuit Miner- is computerized hardware designed specifically for mining cryptocurrency assets. ASIC miner is different from other mining devices that reuse CPUs, graphics cards, or even disk storage, each ASIC miner is built for the sole purpose of mining cryptocurrencies, which means that an ASIC miner designed to mine Bitcoin cannot mine anything else.
Thus, the drawback of ASIC devices compared to their predecessors is that they can only mine a single cryptocurrency hash algorithm. This means that they can only mine cryptocurrencies that are locked to that algorithm, which may be just one or a few algorithms.
ASIC miners are very complex and are designed specifically for mining cryptocurrencies, and these devices can do so much faster than standard computers. Each ASIC miner has its own hash rate, which is the total number of equations that the device can solve in a given amount of time.
How does ASIC Cryptocurrency Mining work?
ASIC miner is a tool designed with a single hashing algorithm, which means that only certain cryptocurrencies can be mined. If you want to mine Ethereum, you have to do it via the Ethash algorithm. Bitcoin can only be mined via the SHA-256 algorithm. If you want to mine these two cryptocurrencies, you need to buy two separate ASIC miners to facilitate both mining operations.
ASIC miners can be expensive. You will find that the prices of these tools tend to fluctuate with the price of cryptocurrencies. When the price and value of cryptocurrency rise, ASIC miners are more expensive. The total amount of money you can make when conducting ASIC mining depends on the cost of your electricity and the energy consumption rate of the ASIC miner you choose. Before buying an ASIC miner, make sure you take the hashing power of the ASIC miner into account. Miners typically range from $100-$120 per terahash.
It is very hard to solve the PoW problem before someone else does. Even if there are many ASIC miners operating at the same time, your chances of being the first to solve the main puzzle are very low. The Bitcoin platform comes with a hash rate of 190 exahash, which is equivalent to one million terahash.
If you choose an ASIC miner with a capacity of 18 terahash per second, your chances of being the first to solve the puzzle are still just over 1 in 10 million. To increase your chances, you can enter a mining pool so that the hash rates can be combined and any rewards can be distributed among the pool participants.
Should You Use ASIC Miners?
ASIC miners can be highly useful for beginning and experienced traders alike. However, the high cost of most ASIC mining devices means that you might want to have at least some experience with mining before purchasing one of these equipment. Cryptocurrency values will also play a vital role in your potential for profitability.
The best ASIC miners can increase your chances of profitability, which is why ASIC mining may be a great choice if you can afford it. Make sure that you do extensive research before deciding which of these ASIC miners is right for you.
Advantages of Using ASIC Miners
There are several benefits that come with using ASIC miners (as opposed to GPUs), which include everything from fantastic performance to high energy efficiency.
Miners can focus on mining one type of cryptocurrency, which makes it easier for these units to maintain fantastic, consistent performance. These systems don’t need to be optimized for hundreds or thousands of separate currencies, which makes it easier to optimize the system for a single currency. As a result, most ASIC miners are much more efficient than graphics card devices.
- Space Efficient
ASIC miners are standalone equipment that simply plugs into a computer with an internet connection to begin the mining process. In contrast, graphics processing devices require other components like a motherboard and CPU cooling to function properly. Make sure your ASIC miner is paired with an excellent power supply that can meet the power needs of the devices.
- Highly Energy Efficient
These systems are highly energy efficient, which means that any significant drop in cryptocurrency prices does not automatically indicate that power costs will be higher than revenues. ASIC miners such as the JASMINER X4-1U are small enough to use only a few hundred watts of power but still outperform all graphics cards due to their efficient mining hardware.
Disadvantages of Using ASIC Miners
Although ASIC miners are much more efficient than graphics processing devices, there are several issues to be aware of.
- Can Only Be Used With One Currency
The main benefit of ASIC miners is also a significant drawback: Each ASIC miner is optimized solely for only one cryptocurrency, which means that if you want to mine both ethereum and bitcoin, you’ll need to buy two ASIC miners.
Although the cryptocurrency market is supposed to be almost completely decentralized, there is a degree of centralization with ASIC miners. These devices are much more expensive than graphics processing devices, which means that they tend to be centralized among wealthier cryptocurrency investors and miners.
Whether you’re just starting out or have been mining for years, using an ASIC miner can help you reduce your energy consumption and increase your potential profits. While these units tend to cost a considerable amount of money compared to GPUs, with preparation and the right resources, ASIC mining remains the most profitable form of cryptocurrency mining.