Welcome to our encyclopedia of mining history by Minerall.io. This time, let’s talk about ASICminer.
A company started on July 18, 2012. After six years, the head of the company, its ideological inspirer and founder, remains in the shadows. Who is the person with the nickname FriedCat? Nobody knows.
Creators of ASICminer didn’t follow the standard way of finding investments, but decided to act innovatively: the company’s shares in the seed-phase were divided among investors, and the rest went to the stock exchange.
In the first quarter of 2013, a first chip from ASICminer entered the market. It was relatively inexpensive — the development cost the company $ 150,000.
First generation of miners had sturdy characteristics: a hashrate of 10 Gh/s and power consumption of about 100 watts. Blade Block Erupter plate gave twice as much efficiency as the FPGA of that time.
ASICminer was the pioneer of mining data centers: plates can be installed in standard 19” server racks. The first batch was bought out in the first hour, and the auctions were carried out only among the shareholders. The cost of one device was $ 12,500. The overall performance of all devices was 40 Th/s, which is almost two times more effective than the entire Bitcoin network. The efficiency of the data center allowed to lead in the industry for several months.
Blade Block Erupter v.2 was the next step in the development of ASICminer. Its price was $ 7,500 at the start of sales in April 2013. The miners’ hopes were justified, and in the summer company released an improved model of the ASICminer Cube (price — $ 7,000). The device could boast a performance of 36 Gh/s with power consumption of 430 watts.
A single-chip portable version of USB Block Erupter can be called a failed ASICminer experiment. Its capacity was 330 Mh/s. Due to the low cost (about 1 Bitcoin at the rate of 2013), the miner caused a hectic interest, but within a few months the hype went down to zero.
In the late summer of 2013, competitors began to put pressure on ASICminer, and the company’s shares began to fall. Only in 2014, a company managed to re-enter the market, but products are hopelessly outdated. Soon FriedCat disappeared, taking with him the remaining money.
That’s how bright and short life of ASICminer ended. But it’s giving a powerful impulse to the development of modern type miners.
We say goodbye to you until next week. Wait for the new chapter of the history of mining with Minerall.io!
Minerall.io welcomes you to the latest news of the past week. We collect for you the most interesting and burning events. Here they are.
Crypto-Korea: what to expect?
The government of South Korea is increasingly immersed in the world of cryptocurrency. Next in line is a global discussion at the highest level. Read more
Abu Dhabi+ IBM=?
Abu Dhabi National Oil Company has started cooperation with IBM in the blockchain. The pilot project will allow Arab oil and gas producers to automate transactions and receive even more millions. Read more
For hard forks — to court!
UnitedCorp wants to defend the honor of Bitcoin Cash by suing Bitmain, Bitcoin.com, Roger Ver, Kraken Bitcoin Exchange. Read more
BTC for 333 000$?
Bobby Lee believes that in 2021 the cost of bitcoin will fly to the moon, and in January 2019 it will drop to $ 2500. Read more
Israel: no more Bitmain
The head office of the company Bitmain closed the developer center and fired all employees. Read more
Bitcoin Cash (BCH) — Bitcoin version, resulting from the hard fork of the original blockchain. Cryptocurrency has SHA-256 Hash Algorithm. The maximum amount is 21 000 000 coins;
Bitcoin Cash is the product of the collaboration of mining pool viaBTC (mining pool) and Bitmain for the implementation of a user-activated hard fork (UAHF).
Standard features of BTC & BTH
Both currencies are developed using the same protocol;
Same algorithm for hash counting;
POW (Proof of Work) for receiving rewards;
The same coin mining speeds and the number of Bitcoin Cash coins.
Differences BTC & BTH
Users can create blocks of 8 megabytes in size (which is 8 times larger than the blockchain bitcoin block);
The complexity of generating new blocks changes much more often — after every 6 mined parts of the blockchain (in the case of the cue ball, this figure was 2016 blocks).
Roger Ver believes that all BTC owners need to switch to Bitcoin Cash right now. Now the cost of the coin is not so high. But many people still trust their investments in this currency. And this allows you to make a favorable forecast for the course at least for the next year.
— American company conducted a research. According to it, mining of Ethereum with the help of video cards became unprofitable. How dangerous is the situation in general?
— That is the question with a trick. I will explain why. There are industrial and home mining alone. And the difference between them is fundamental. Let’s take the situation in Ukraine as an example: with the price of electricity at 10 cents per kW/h for enterprises, the card px570 mines ether at 34 cents per day. For the electricity you’re paying 29 cents. In such a situation, mining is advantageous when the losses in the power system are less than 20%. Another question, home mining — unfortunately, the vast majority of miners mine «to zero.»
— And to what limit should ETH fall (if it has not collapsed yet) so that Ukrainian miners would start turning off their machines?
Right now, many Ukrainian miners are throwing farms away and putting up video cards for sale. However, I think that this is a reaction to a massive fall in the price of cryptocurrency and elimination out those who are not interested in collective mining. First of all, it is a natural selection, not a crisis. If you would understand this, then the phobia about cryptocurrency fluctuations will come to naught.
In any case, industrial mining is alive and will live: the minimum price of ether for mining at such a cost of electricity will be approximately $100-110 per coin.
— What is the future for video cards’ mining?
Well, the failure of the mining on video cards is still very far and one can hardly expect its funeral soon. Moreover, I believe that the cryptocurrency exchange rate will become stable since it is not profitable for traders to sink the exchange.
Good news for Ethereum fans: we added Ethereum Classic to our coin listing as one of the most exciting and potentially profitable coins.
Ethereum Classic was born after the DAO hard fork (after the great hacking of wallets on Ethereum in 2016 and theft of coins totaling more than $ 50,000,000). For the first time, it started selling Poloniex on a crypto-exchange. The main advantage of Ethereum Classic is smart contracts, this program automatically checks all contract terms and fulfills all obligations.
Ethereum Classic has some essential features:
The project fully preserved all the principles of decentralization and free choice of the market.
Guarantees. The system guarantees complete security. And despite the many attacks that were made on this system, it continues to function.
Another significant advantage of this cryptocurrency is the ability to exchange on many exchanges immediately for cash inventory, without exchanging at BTC.
Ethereum Classic has an unlimited number of coins so that mining will remain in demand.
It has been confirmed that it has been the case for the blockchain platform. It can be trusted.
Development prospects: Ethereum Classic is a cryptocurrency. Simply said.