ASIC Mining Statistics

Gearing Up To Mine Cryptocurrencies: What You Need To Know About ASICs

In the past year, bitcoins become more popular than anyone would have ever imagined. With the rates of bitcoins going up by a significant amount, they became one of the best investment options for people who wanted to make a good profit. But the very nature of bitcoins is something that puzzles people. Bitcoins aren’t a form of tangible currency that you can hold in your hand and feel. Instead, they are a virtual currency that exists in the form of encrypted strings that point to a particular block or bitcoin. The concept can be a bit overwhelming if you aren’t proficient in programming and networking, which is why the number of people mining bitcoins is far less than the people who want to own it.

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The Rundown Of Bitcoins

Bitcoins were the first cryptocurrency to hit the markets and came out in 2009. Numerous other types of bitcoins soon followed, but none were as sought after as compared to this one. Back then, coders would break down complex algorithms of data known as ‘blocks’ to be able to yield a certain amount of bitcoins. Bitcoins were the monetary representation of the block, and could then be used on the internet, or converted to a national currency. In simpler words, you break a block, you get a code out of it, which then can be used as an investment. It isn’t very different from real gold mining when you think about it!

 

Getting Geared Up

For people to be able to carry out the process of mining, they needed specialized equipment. Bitcoin mining can’t be done through a simple computer and needs a special tool called an ASIC. ASIC stands for application specific integrated circuit. This tool functions as a custom circuit to be able to mine bitcoins safely. Usually, when a person engages in the process of mining bitcoins, they are using up a lot of power. This power can short circuit the computer, and cause abnormal power cycling, which is why you need a proper device to be able to mine. Moreover, experts say that it is almost impossible to mine without a proper ASIC. Even though bitcoin miners tend to think there are very few of them around, there are more out there than one would expect. The number of bitcoin miners easily goes into the 150,000 range, and the number of computers, or ‘nodes’ as they are referred is far more.

 

Choose You Tools

Currently, there are a number of ASICs on the market, varying in price range and efficiency. One of the defining characteristics of an ASIC is the kind of cryptocurrency they can mine. Because different cryptocurrencies follow different algorithms, an ASIC can only be designed to mine that kind of currency. For example, if you want to mine bitcoins, you have to get an ASIC that is specialized in mining bitcoins. You can’t use the same device to also mine things like Litecoin for example.

However, it isn’t unheard of to have an ASIC that can mine two different kinds of cryptocurrencies. Sometimes, ASICs can mine two types of cryptocurrencies and tend to be of higher complexity than standard ASICs. These, however, tend to be a lot more expensive than conventional ASICs and use up a lot more power, which can increase the cost of your electricity bill by a significant amount. So if you want to mine bitcoins and litecoins using one device, this is the way to go about doing it.

 

Choosing The Right ASIC

The kind of ASIC that you go in for will be the determinant about how much you can mine, and how long it will take to mine. A good ASIC chip that has received good reviews will work more efficiently than one which might be a little cheaper, and not as effective. To explain this concept better, let’s take the real world process of mining. You find a location where you know you will get your mineral, and start to mine it. You may be able to find one or two minerals if you use a pickax, but if you want to mine on a larger scale, your pickaxe isn’t going to cut it. You will need a tool that is better, maybe, a mechanized driller. Sure this driller might be a little more expensive than your standard pickaxe, but it will most definitely yield more minerals out of it. The same concept applies to cryptocurrency mining. Your ASIC is the tool that you use to mine, and if you don’t have a properly functioning one, you might not be able to get much out of your task of mining.

 

Running The ASIC

When you buy an ASIC, you would need custom software to be able to run it and to mine with it. Most of the times, ASICs come with their software installed, and with a few modifications, are good to go! However, it isn’t uncommon for programmers to write up their softwares and run it according to their specifics and requirements. There are of course additional specifics that one needs when they are trying to mine. One of those is a good GPU and CPU. It isn’t necessary to have high-end models of both; it just depends on which currency you are planning to mine. Currencies like bitcoin are better to run using a good CPU rather than a GPU as it increases the mining rate and efficiency of the program that you are running.

There is a lot to learn in the world of cryptocurrency mining. With the sudden increase in interest that they are seeing, there is no doubt that more efficient ASICs are on their way to make the process of bitcoin mining a whole lot easier with the top ASIC hosting service.

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