We will devote this text to the concept of ASIC and ASIC miner. These two concepts are among the main ones in the field of bitcoin mining, so they should be taken time.
What is ASIC?
The word ASIC, which is often found among persons engaged in the production of cryptocurrency and a blockchain network, is an English abbreviation.
Decoding sounds like Application-Specific Integrated Circuit. In fact, ASIC is a specialized microchip that performs a certain range of tasks in specialized Bitcoin mining computers. The main feature of such schemes is the use of them in certain devices and the performance of their exclusively specified functions, which must necessarily be present in the selected device.
A vivid example of ASIC is the microcircuit, the main task of managing the mobile device. Also, chips of this type are often used to decode and encode video and audio signals. Such chips are also known as signal processors.
For the process of extracting virtual currency, ASIC is used exclusively because of the unique structure that allows reducing the cost of production of microcircuits. In addition, due to the specific orientation of the chips, the level of productivity and energy efficiency of the digital currency extraction process is increasing.
What Is an ASIC Miner?
ASIC miner is a special device designed for mining cryptocurrency and uses specialized microprocessors in its work. With the help of ASIC mining hardware, complex mathematical problems for cryptocurrency mining are solved faster than on less powerful computers.
Usually, a certain ASIC miner is designed to mine only one type of cryptocurrency. So Bitcoin ASIC is only for mining bitcoins.
ASIC mining devices are expensive to manufacture because they are much more powerful and performant than your ordinary laptop or desktop computer. ASIC chips are constantly being improved. New miners operate at around just 29.5 Joules per Terahash.
ASIC Mining
ASIC mining is a process performing for mining Bitcoin or other cryptocurrencies using ASIC rigs. Miner is a device that is used only for mining. Mining is an activity that is required by a proof-of-work blockchain to carry out its operations. It involves making complex calculations for solving a mathematical puzzle, which miners compete to earn a block reward.
The more mining devices are connected to the Bitcoin network, the more difficult the process of mining Bitcoin is. Therefore, increasingly powerful Application-Specific Integrated Circuit miners are required to get a new block reward.
Bitcoin ASIC Mining
Application-Specific Integrated Circuit used to mine cryptocurrencies use special integrated circuits that support the Bitcoin blockchain. Initially, Bitcoin’s creator intended that ordinary computers would be used for Bitcoin mining. Still, Bitcoin ASIC miners have greatly surpassed them both in terms of power and terms of electricity consumption.
Hashes are complex calculations that are made by Bitcoin miners. The number of bitcoins received depends on the number of hashes executed at the specified time.
While the demand and price of cryptocurrency are increasing, so is the demand for Bitcoin miners. Many people consider this to be a good investment for their money.
Finding a Best Bitcoin ASIC Miner
If you decide to try your hand at Bitcoin mining, you need to choose the right Bitcoin mining hardware. The first thing to do is find the appropriate miner.
When buying Bitcoin generators, you should pay attention to these parameters:
- Efficiency
The more the consumed power the device converts into bitcoins, the more efficient it will be. Electricity costs are one of the main expense items. The most efficient bitcoin mining hardware on the market today is Halong Mining Dragonmint T1.
- Hash Power and Rate
These figures show how many hashes per second a miner is capable of producing. The higher hash rate speaks for the benefits of the product, but more hashes cost more.
- Price
The question of price is always decisive. The latest equipment with better efficiency and hash power will cost more. Also, buying bitcoin mining hardware from resellers will not help you save money.
Ideally, bitcoin miners should combine all three indicators. This depends on how quickly you can recoup them. To estimate their payback, we recommend you use the Bitcoin mining calculator, in which you need to enter all the indicators relevant to your situation. Remember that profitability depends not only on Bitcoin mining machines but also on electricity costs.
Advantages of Mining with ASIC Miners
Although the miners themselves are quite expensive, there are several advantages to using this type of work:
- Low power consumption — these latest-generation mining devices consume less power than other models.
- High profits — using miners with ASIC chips, you get a better chance of getting what you want.
- Easy setup system that anyone can handle.
- Higher efficiency and hash rate compared to other CPUs.
Bitcoin Mining Hardware Companies
A good solution would be to opt for ASIC devices from popular mining companies. These include:
- MicroBT
It is a well-known manufacturer from China. Their most popular series of Bitcoin miners is WhatsMiner.
- Bitmain
Another company from China has taken over the global market. It also operates a Bitcoin mining pool—direct competitors to MicroBT with AntMiner devices.
- Canaan
This company launched the very first commercial Bitcoin ASIC miner on the market.
Top-5 Miners
These models attracted us in many ways, and we decided to recommend them to you. You can compare them with other miners and make sure they are the best in their field.
1. AvalonMiner 1246
Hash rate: 90.0 TH/s
2. Antminer S19
Hash rate: 95.0 TH/s
3. WhatsMiner M30S+
Hash rate: 100.0 TH/s
4. Antminer S19 Pro
Hash rate: 110.0 TH/s
5. WhatsMiner M30S++
Hash rate: 112.0 TH/s
The latest models are not always the best since it is essential to pay attention to the ratio of price and performance of the miner.
Additional Bitcoin Mining Equipment
For mining cryptocurrencies, Bitcoin miner alone is not enough. Even if it is the best of its kind, one needs additional devices and equipment. You will also need:
- Cooling Fans
First, the Bitcoin miner can overheat and shut down. And secondly, the more the device is heated, the more power it consumes. And this leads to an increase in electricity cost and a decrease in income.
- Power Supply
For more efficient use of power consumption, special power supply devices are needed.
- Backup Generators
If the main power source runs out, then your backup plan may be to use an additional generator.
Is Bitcoin Mining Profitable?
Many say now that buying bitcoins is the most profitable way to get bitcoins and that cryptocurrency mining brought in more profits in the early days. In part, this is true, but as in everything, there are nuances. Although block rewards were higher in the early days, Bitcoin prices are now significantly higher. This makes Bitcoin mining a profitable investment.
To make the right decision, one needs to consider a large number of conditions in each situation separately. In addition, all calculations can be correct only for a short period of time since the market situation is constantly changing. The price of miners, digital currency rate, transaction fees, the cost of electricity — all this directly affects the profitability of the mining process.
How to Mine Bitcoin with an ASIC
The process itself is more complicated than just buying a miner and connecting it.
Please check below the steps one should take to mine Bitcoin with an ASIC successfully.
- Do your research and choose the right mining rig.
- Make an analysis to find the best mining software.
- Use a calculator to calculate your profit.
- Get a Bitcoin wallet.
For any business to be successful, you first need to calculate its profitability. We encourage our readers to use a Bitcoin mining calculator to get the closest possible return on their investment. The calculation is based on such indicators as hash rate, current currency price, electricity costs, miner cost. Having made the calculations, you will understand how long it will take you to recoup your costs and earn something.
It is important to note that the longer the obtained time interval, the more likely inaccuracies in the calculation are. After all, the calculation was made only for today, with relevant indicators only at the moment. Electricity prices and other expenses may increase. Also, the value of Bitcoin can change. If you get satisfactory results, then you can get to work.
Please remember that this article can be used only for informational purposes, and it is highly recommended to do your own research before any investment in blockchain or key decision.
FAQs
What is ASIC in mining?
In essence, an ASIC is a microchip that is used in a miner to perform certain operations for crypto mining. It includes making multiple calculations for solving mathematical issues, which miners compete to receive a block reward. Each ASIC is designed for only one type of cryptocurrency. Important indicators of ASIC are hash power, efficiency, and, of course, price. Before choosing this method of obtaining cryptocurrency, it is worthwhile to make profitability calculations.
Are ASIC miners worth it in 2021?
It depends on your individual situation and your ability to find access to cheap electricity and relatively inexpensive miners (some even change a country in pursuit of suitable conditions). It is also worth remembering that there is now an oversaturation of the blockchain network. In any case, we recommend, before making a decision, to make estimates on a calculator that will take into account all your current expenses, the cost of currency, and the possibilities of your mining equipment.
Is ASIC Mining Market legit?
This is a provider selling CPUs, mining hardware, hash, and so on. You can find many reviews of this company online, and many of them will not be positive. We believe that there are already too many risks, so you should not trust and spend your money on a firm that does not have a good enough reputation. Many miners recommend bypassing this place.
How long do ASIC miners last?
It depends on the operating conditions, but in general, we can say that the service life of such products is 2-2.5 years. It is better to check the manufacturer’s data before buying. Also, do not forget to include this metric in the calculation of your profit plan. If the profit is predicted after the device dies, there is no point in purchasing it.
What is a mining pool?
The mining pool is a group of miners who have united to have a better chance of receiving block rewards. Miners join a mining pool to combine computing power and achieve positive results faster. Then they share the rewards for any mined block. There is usually some kind of pool fee to join. There are special types of unions depending on the cryptocurrency blockchain network, to name one, the Bitcoin mining pool.
