ETHEREUM PRICE DROP. ASIC VS. GPU MINING
The price of Ethereum has fallen to $389 today down 72% from its all time high of $1432 after rumors that an Application Specific Integrated aka ASIC Miner has been developed by Bitmain one of the largest manufacturers of crypto currency hardware worldwide.
What are ASIC miners? How do they compare to GPU miners? How can ASIC mining affect the price of a coin? And why are some crypto communities so adamant about keeping their blockchains ASIC resistant?
Please share your thoughts in the comments section below.
Why We Use GPU vs ASIC https://www.trymining.com/pages/asic-vs-gpu
Ethereum falls after rumors of a powerful mining chip surface https://techcrunch.com/2018/03/27/ethereum-has-the-asic-blues/
Ethereum Users Support Hard Fork to ‘Brick’ Ethereum ASIC Miners: Poll https://www.ccn.com/ethereum-users-support-hard-fork-to-brick-ethereum-asic-miners-poll/
Going to War: Monero Sticks to Anti-ASIC Guns with Emergency Software Update https://www.ccn.com/monero-sticks-to-anti-asic-guns-with-emergency-software-update/
ASIC Mining Hardware
https://www.bitmain.com/
I think the real danger with ASICs is when the manufacturer gets so big and influential, that the mining code starts to be purpose-built for said hardware. In that case, (which some would argue has already happened) the public is guaranteed to lose. In this scenario, you've essentially vertically integrated your supply chain, driving up costs at the whim of the HW maker, and the devs get their hands tied and are unable to change code (read: innovate) freely without serious consideration for the firmware involved. The spirit of crypto is decentralization and ASICS work against that over time. I work at a place now that prides itself on using commodity hardware and putting all the "smarts" in the software. At anytime, we can kick out a supplier and bring in a new one without issue. We can develop new code and functionality more quickly than our competitors, and our customers generally pay less for our gear than they do for our nearest competitor. I applaud the bright mind in the cryptosphere that are already working to make their coins ASIC resistant. They are democratizing mining for the masses!
The only truly ASIC proof algorithm Im aware of is Proof of Stake, escalations in GPU and ASIC mining create centrealized hashing power and defeats the purpose of crypto. But Ethereum isnt really decentralized anyway:
https://arewedecentralizedyet.com/
...someone's been thinking! ;)
Oh stop, Im blushing...
I saw this quote out there when I was reading about monero trying to block asics from working.
At first, most users would run network nodes, but as the
network grows beyond a certain point, it would be left more and more to
specialists with server farms of specialized hardware.
-Satoshi Nakamoto
Already said it on ytube....But ill drop it here too @champagnecrypto
I think they need to make most crypto easily accessible. ASICs don't seem to do that, unless you wanna shell out a couple Gs to get it going....I'm not a crypto "investor" like that...I have invested SOME money, but thousands is too much, especially in this market....MAKE IT EASIER FOR EVERYONE, NOT MORE EXPENSIVE...SOUNDS LIKE THE DAMN GOVERNMENT, THAT DAMN BITMAIN
It's already beyond the reach of non company miners unfortunately because of power costs for mining. Power rates are only reduced after a certain amount of usage.
This is a problem that will continue to occur as technology continues to advance towards quantum conputing. However, I believe developers will continue to be aware of this and consider network changes to combat this as the security of the blockchain depends on it.
Good post
This is a great endeavor in supporting the minnows and somehow it will encourage them to post an article with good
Thanks for share experience front us