What are the limits of ASIC Mining?

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I'm not an expert, but as far as I understand it, Moore's Law applies to ASICs just like other chips. So, every two years you get newer ASICs which can hash more, even though the chip design is not all the different from the previous ASICs, the number of transistors that chip has on it is doubled. So, there is always going to be a cost of keeping up with the latest chips. This is part of what prevents a 51% attack, since there are literally not enough ASICs is the world for one big bank or something, or one scammer, to buy them all up to mine with. World BitCoin Network on YouTube goes into this in more detail in the 51% attack video.

Moore's Law isn't going to hit a limit in the near term, since when we get so small we are on the scale of just a couple of atoms, we will just start stacking chips on top of each other. Itel is already researching liquid cooling between chip stacks. So, for the forseeable future, Bitcoin mining is not just going to be a function of cheap...

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Wally, I think he is referring to how the other manufacturers of ASIC miners have limited their supply and the numbers any one person could buy so that the mining hash rate wouldn't skyrocket and 1. cause mining investors to never be able to recoup their investment and 2. Cause their consumer base (people who buy the mining units) to give up on mining, and thus not buy anymore units.

If the hash rate today shows that you could make 10 coins a month, so you order one thinking you'll get your money back in 5 months, but by the time you receive yours, a week has gone by, and 100 people have since gone online with their delivered units, which raises the hash rate to 15GB more, lowering profit to 8 coins a month, but your's just arrived, you start mining and a week later, profit is at 6 coins, etc.... Your first month you're lucky to get 4 coins total. Next month will be even less and on and on it goes. And you can never recoup your expense of buying the miner at 56 or whatever...

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A quick and dirty mining rig

Introduction

Mining is the process of adding transaction records to Bitcoin's public ledger of past transactions. This ledger of past transactions is called the block chain as it is a chain of blocks. The block chain serves to confirm transactions to the rest of the network as having taken place. Bitcoin nodes use the block chain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.

Mining is intentionally designed to be resource-intensive and difficult so that the number of blocks found each day by miners remains steady. Individual blocks must contain a proof of work to be considered valid. This proof of work is verified by other Bitcoin nodes each time they receive a block. Bitcoin uses the hashcash proof-of-work function.

The primary purpose of mining is to allow Bitcoin nodes to reach a secure, tamper-resistant consensus. Mining is also the mechanism used...

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By Ron Frazier

About Me

Hello, my name is Ron Frazier. I have a broad background in using and working on technology and working with the internet. I have a particular interest in cryptocurrency. You can find out more about me by clicking on my picture below.

About This Article

[caption id="attachment_1018" align="alignright" width="375"]

Image credit:

Flickr

[/caption] In this article, I will examine the state of Bitcoin and Litecoin mining for individuals using actual examples of my own GPU mining and theoretical examples of ASIC mining. I do not personally own any ASIC's at this point. In part 1, I discussed what Bitcoin and Litecoin are and how they work as a currency. In part 2, this part, I will examine mining in more detail and describe what it is and what it does. In part 3, I will review whether it’s profitable to mine or not.

Here's a link to Part 1

- the introduction to cryptocoins and their mining. First,...

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Buying hashing power at NiceHash is very simple. We offer you two types of hashing power orders:

Standard bidding type: this type of order will allow you to bid for a price as low as possible, however if some other out-bids your order then your order might be paused and you may have to increase price to sustain speed. That said you have to monitor your orders to make sure you maintain desired speed. Fixed type: this type of order will allow you to place an order with fixed price and will guarantee you the desired hashing speed through order's lifetime, even if there are other bidding orders with higher price submitted later on. You will have to pay a bit higher price in relation to current fixed orders demand.

Please keep reading and

see below

for detailed explanation of each type of order.

You are also welcome to try automatic order management by using NiceHashBot, take a look at FAQ Are there any automation tools for orders and account management? for...

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The best Bitcoin mining hardware has evolved dramatically since 2009

At first, miners used their central processing unit (CPU) to mine, but soon this wasn’t fast enough and it bogged down the system resources of the host computer. Miners quickly moved on to using the graphical processing unit (GPU) in computer graphics cards because they were able to hash data 50 to 100 times faster and consumed much less power per unit of work.

During the winter of 2011, a new industry sprang up with custom equipment that pushed the performance standards even higher. The first wave of these specialty bitcoin mining devices were easy to use Bitcoin miners were based on field-programmable gate array (FPGA) processors and attached to computers using a convenient USB connection.

FPGA miners used much less power than CPU’s or GPU’s and made concentrated mining farms possible for the first time.

Today’s modern and best bitcoin mining hardware

...
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We are quite close to the introduction of the new generation Scrypt ASIC miners that would scale from tens of megahashes to the hundreds of megahashes. Most of these new miners have been pre-ordered months ago with expectancy that they will be delivered on time to speedily return the investment and make some excellent revenue. This nonetheless already appears like anything that may not happen so effortless, or at all for that matter. The investment in the at the moment offered Scrypt ASIC miners also might not appear as the ideal notion for the minute as well, even although the makers do have some pretty sweet bargains available. This is standard as they want to consider the advantage and promote their manufacturing before it turns into some thing that nobody might be interested to acquire due to high energy usage and lower efficiency when the new generation starts hitting the marketplace by the finish of September (most likely). Since Scrypt ASIC mining is a lot newer than...

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Video courtesy of: www.BitcoinMining.com

Bitcoin Mining Hardware Comparison

Currently, based on (1) price per hash and (2) electrical efficiency the best Bitcoin miner options are:

AntRouter R1

5.5 Gh/s 50W 1.0 pounds Yes $59.95 0.00001058

Antminer S9

13.5 Th/s 0.1 J/GH 16 pounds Yes $2,264.51 0.3603

BPMC Red Fury USB

2.5 GH/s 1.00 W/GH 1.6 ounces Yes $23.87 0.00006672

Before we begin...

Before you read further, please understand that most bitcoin users don't mine! But if you do then this Bitcoin miner is probably the best deal. Bitcoin mining for profit is very competitive and volatility in the Bitcoin price makes it difficult to realize monetary gains without also speculating on the price. Mining makes sense if you plan to do it for fun, to learn or to support the security of Bitcoin and do not care if you...

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Long story short, we're going to release the USB version of ASIC X11 Miner soon. The final mass manufacturing design would be one of the following designs. The final decision would depend on the evaluations in the next few weeks. I'd love to put the design out there first to let anyone interested know that this USB version miner will be in the market soon.

The ASIC chip is the same one as the larger units, but we believe that manufacturing USB versions would be more beneficial for our community. So after the shipping out the first batch of 500 MH/S units, our main concentration would be on small USB versions instead of another batch of large units.

Let me know if you're interested.

Subscribe from http://eepurl.com/bXaAhH (Mailchimp Email List)

Design 1:

Design 2:

Video

Updates:

2016-4-21: The current release date for USB miner is in Mid-May 2016. The price would be 10 DASH per unit. We...

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ASIC mining is now the norm for Bitcoin, and 28 nm ASICs are now becoming the mainstream replacing the 65 nm, or even 110 nm, designs of a year ago. Bitcoin ASICs have leapfrogged several integrated circuit (IC) technologies in a way that's rarely been seen before and at an almost unprecedented rate of progress.

How have things been able to move so fast, how much further can this go, and what might we expect from new designs?

Why Have Things Moved So Fast?

There are two characteristics of Bitcoin's design that have enabled the current style of ASIC mining:

It was designed from the outset to be incredibly scalable. It uses a commonly-used SHA256 hash function for most of the work.

From a hardware designer's perspective the scalability of Bitcoin was a brilliant piece of engineering. Its design allows many parallel engines to work on the same problem without significant serialization (where things get bottlenecked through one part of the system) and...

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ASIC technology has moved remarkably quickly since it first appeared on the market in 2013, with hashrates increasing exponentially. ASIC developments both contribute to and are catalysed by the increasing Difficulty of the bitcoin network, since any new entrant to the market must be able to compete with existing miners and be profitable for long enough to pay for itself. This mining ‘arms race’ has led to certain dynamics that affect the wider bitcoin ecosystem, and may or may not shape the future for aspects of the cryptocurrency.

Centralisation

As the Difficulty of mining increases, only the fastest miners can turn a profit. This has led to the creation of extremely large, industrial-scale mining businesses. These typically combine many hundreds or thousands of smaller units to create mining ‘cities’ in warehouses that are capable of up to a thousand TH/s (1 Petahash/s).

It is likely that more and more of these mining businesses will spring up,...

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Last updated: 26th November 2013

There are three main categories of bitcoin mining hardware, each more expensive and more powerful than the last. This guide to setting up a bitcoin miner explains each of them, and talks about how to make them work.

By this stage, you will understand how bitcoin works, and what mining means. But we need to get from theory to practice. How can you set up a bitcoin mining hardware and start generating some digital cash? The first thing you're going to need to do is decide on your hardware, and there are two main things to think about when choosing it:

Hash rate

This is the number of calculations that your hardware can perform every second as it tries to crack the mathematical problem we described in our mining section. Hash rates are measured in megahashes, gigahashes, and terahashes per second (MH/sec, GH/sec, and TH/sec. The higher your hash rate (compared to the current average hash rate), the more likely you...

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What is Bitcoin mining? Bitcoin mining is how Bitcoin transactions are validated and confirmed by the Bitcoin network. Bitcoin miners create a new block by solving a proof of work problem that is chained through cryptographic proof to the previous block.

Each block builds upon the previous one creating a blockchain. Every transaction in the blockchain can be proven. In this way, the Bitcoin network can come to distributed consensus as to how many Bitcoins (100,000,000 satoshis) are allocated to each public key address.

What is a Bitcoin miner? A Bitcoin miner is a computer specifically designed to solve problems according to the proof of work algorithm. Currently, highly specialized chips called ASICs, Application Specific Integrated Circuits, are used as Bitcoin miners. There are many places where you can buy a Bitcoin miner.

What is Bitcoin? Bitcoin is an internet protocol that enables the transfer of value over a communications channel like the Internet or...

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All manufacturers of mining devices ( ASICs), contacts for purchase and reviews on delivery and supliers.

When you have an unprecedented desire to assemble a farm on 100500 TeraHash and to mine a billion coins you start to think and search where to purchase ASICs and how to get to the enormous hash power that you want with minimal costs...and of course to enjoy the pleasant noise of the working equipment around you ) ->>>>

Of course, you'll ask yourself: where to buy ASICs? Some websites don't have contact information, others have a lot of fake images, on others you need to preorder ASICs 6 months prior to delivery (that's a lot of time to wait), there are also the ones that seem more like PONZI activists...

As a result, after a long search and analysis of ASICs available for sale, we decided to make a selection of manufacturers and resellers with positive...

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The best Bitcoin mining hardware has evolved dramatically since 2009

At first, miners used their central processing unit (CPU) to mine, but soon this wasn't fast enough and it bogged down the system resources of the host computer. Miners quickly moved on to using the graphical processing unit (GPU) in computer graphics cards because they were able to hash data 50 to 100 times faster and consumed much less power per unit of work.

During the winter of 2011, a new industry sprang up with custom equipment that pushed the performance standards even higher. The first wave of these specialty bitcoin mining devices were easy to use Bitcoin miners were based on field-programmable gate array (FPGA) processors and attached to computers using a convenient USB connection.

FPGA miners used much less power than CPU's or GPU's and made concentrated mining farms possible for the first time.

Today's modern and best bitcoin mining hardware

Application-specific...

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One.Tel was a group of Australian based telecommunications companies, including principally the publicly listed One.Tel Limited (ACN 068 193 153) established in 1995 soon after deregulation of the Australian telecommunications industry, most of which are currently under external administration by court appointed liquidators.

The company was established by Jodee Rich and Brad Keeling and had high-profile backers such as the Murdoch and Packer families. James Packer and Lachlan Murdoch sat on the board of the company.[1]

One.Tel attempted to create a youth-oriented image to sell their mobile phones and One.Net internet services. It became Australia's fourth largest telecommunications company before collapsing in 2001. Rich and Keeling continued to receive $7m in payments shortly before the company entered administration.[2] The Packer and Murdoch families were embarrassed by the failure of the company, especially after it was reported that both James Packer and Lachlan...

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