If you intend to mine cryptocurrencies, you need to have the right tools in place. Although many miners use GPU to do mining, it is also possible to use ASIC mining which can lead to better results. It is easier for an ASIC miner to make a profit by mining various cryptocurrencies. This guide tells you everything you need to know about ASIC cryptocurrency mining – details on the 19 best ASIC miners you can buy.
What is ASIC Cryptocurrency Mining?
ASIC mining is the process of using specialized computers to mine cryptocurrencies using a Proof of Work (PoW) mechanism. Computers have to solve a puzzle to effectively extract the code.
Using this system, a block of data must be verified before being added to the blockchain. The block comes with a complex puzzle for the ASIC computing device to solve. The first person to solve the problem will have the opportunity to upgrade the blockchain, where this person can be rewarded with cryptocurrency.
How does ASIC cryptocurrency mining work?
ASIC miners are tools designed with a single hash algorithm, which means that only certain cryptocurrencies can be mined. If you want to mine Ethereum, you have to do it with the Ethash algorithm. Bitcoin can only be mined using the SHA-256 algorithm. If you want to mine both cryptocurrencies, you will need to purchase two separate ASIC mining rigs to facilitate both mining operations.
ASIC miners can be expensive. You will notice that the prices of these instruments vary according to the prices of the cryptocurrencies. As cryptocurrency prices and values rise, ASIC miners are also paying more. The total money you can earn by mining ASIC depends on the price of your resources and how fast the chosen ASIC miner consumes energy. Make sure you consider the hashing power of ASIC miners before buying one. Miners typically range from $100 to $120 for each terahash.
It is very difficult for others to solve PoW puzzles. Even if there are several ASIC miners running at the same time, the chances of you solving the main puzzle first are slim. The Bitcoin platform has 190 exahashes, which equals one million terahashes.
In case your favorite ASIC miner has a capacity of 18 Terahash per second, your odds of being the first to solve the puzzle are still just over 1 in 10 million. You can increase your chances by joining a mining pool, which allows hash shares to be pooled and potential rewards shared among pool participants.
ASIC Crypto Mining vs GPU Crypto Mining
If you want to mine cryptocurrencies, you can choose ASIC cryptomining or GPU cryptomining. Most cryptocurrencies are built with a PoW mechanism. Before the advent of ASIC miners, most miners used the graphics processing units of each computer to quickly solve complex equations.
GPUs efficiently decrypt encryption codes to verify electronic transactions. While GPUs serve many purposes, ASIC miners are designed solely for cryptocurrency mining. Because ASIC miners focus on mining, they are typically faster and use much less power than GPUs. In terms of cost, a GPU can be purchased cheaper than an ASIC miner.
What are ASIC miners?
ASIC miners – or application specific integrated circuits – are automated hardware wired specifically to mine cryptographic assets. Each ASIC miner is created to mine a specific type of cryptocurrency, meaning that an ASIC miner designed to mine Bitcoin cannot mine anything else.
ASIC miners have an extremely complex structure and are specifically designed to mine cryptocurrencies, something these units can do faster than a regular computer. Each ASIC miner has its own hash rate, which refers to the total number of equations the device can solve in a given amount of time.
Benefits of using ASIC miners
There are several benefits to using ASIC miners (as opposed to GPUs), including everything from fantastic performance to high power efficiency.
Miners can focus on mining just one cryptocurrency, making it easier to maintain consistent, excellent performance on these rigs. These systems don’t have to be optimized for hundreds or thousands of different currencies, making it easier to optimize the system for one currency. Therefore, most ASIC miners are much more efficient than GPUs.
ASIC miners are self-contained devices that only need to be plugged into a computer with an internet connection to start the mining process. By comparison, graphics cards need other components, like the motherboard and CPU cooler, to function properly. Make sure you connect the Miner ASIC to a good power supply that can handle the power demands of the device.
Very energy efficient
These systems are highly energy efficient, which means that any significant drop in the price of cryptocurrency does not automatically mean that the cost of electricity exceeds the revenue. ASIC miners like the JASMINER X4-1U are small enough to use only a few hundred watts of power, yet are still more powerful than any GPU due to their powerful mining hardware.
Disadvantages of using ASIC miners
While ASIC miners are much more powerful than GPUs, there are a few things to keep in mind.
Can only be used in one currency
The big advantage of an ASIC miner is also a big disadvantage: each ASIC miner is optimized for only one cryptocurrency, which means you have to buy two ASIC miners if you want to mine both Ethereum and Bitcoin, for example.
Centralize the market
While the cryptocurrency market is expected to be almost completely decentralized, ASIC miners have some degree of centralized activity. These devices are much more expensive than graphics processing units, meaning they tend to be concentrated among the wealthiest cryptocurrency investors and miners.