Mining requires a lot of computing power
January 31, 2022
In the past, it has already happened that individual cryptocurrencies were switched to a different algorithm through a hard fork. ASIC devices, which could previously be used profitably for mining this cryptocurrency, became practically worthless as a result, because they could not execute the new algorithm.
Mining requires a lot of computing power
Furthermore, the partly normal volume of an ASIC miner should not be underestimated. We have already created a video about the Antminer D3, which is very well suited to get at least a rough idea of the volume of an ASIC miner.
The difficulty in mining increases
As the overall computing power of the network has increased significantly in the past, much more power is now required to mine successfully. With a current ASIC miner, the current requirements can be met. However, not all cryptocurrencies can be mined with ASIC chips yet. Since specific chips are required for each algorithm, whether ASIC miners are developed at all for specific algorithms depends on demand among miners and likely profitability.
As Tom’s Hardware reports, Intel plans to enter the business of dedicated hardware for mining cryptocurrencies such as Bitcoin and Ethereum. To do so, however, the company will not rely on highly specialized graphics accelerators, as Nvidia and AMD do with their CMP-HX series and BC-160 graphics cards, for example. Intel, on the other hand, will use application-specific integrated circuits (ASIC).