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How are ASICs Relevant to Crypto? - ASIC | מאמר הארגון לחינוך ולימודים

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?How are ASICs Relevant to Crypto

ASIC cryptocurrency has come a long way since Nick Szabo tried to make bit gold
For seven years between 1998 and 2005, but there’s one element of cryptocurrency
That hasn’t changed since Satoshi’s Bitcoin changed the world: mining.

Mining was originally fairly straightforward – get your computer to solve certain Problems and become rewarded for it. Those days are over, and, in modern times
You need dedicated mining hardware. The most effective hardware for mining crypto
Is one that uses an application-specific integrated circuit chip or an ASIC chip.

?Why ASIC Chips

ASIC chips are incredibly efficient. They can be programmed for a single focus, which Means all their potential can be directed towards the task at hand. This differs wildly
From a graphics card or standard CPU system, which can perform mining tasks because It’s designed to perform a wide variety of other tasks – think of it like using a blender to Grind coffee beans, it’s not what it’s made for, but it can do the job, just not particularly Efficiently.

ASIC chips are different, and their name gives a hint as to why – they’re application-Specific. That means when ASIC chips are used for mining hardware, they are designed From the very start to perform the functions specifically required for mining. This makes ASIC chips incredibly efficient at mining; they show their power by offering high hash Rates at excellent energy-efficiencies.

What Makes Them Perfect for Crypto

ASIC chips’ efficiencies are perfect for crypto mining. That’s because, while originally Miners were profitable, the profit margins are now very thin. In many instances, it’s not
At all profitable to mine currencies like Bitcoin. The cost of the mining hardware and its Depreciation, as well as of electricity, erodes profitability greatly. Additionally, regular Fluctuations in the price of currencies can cause a previously profitable endeavor to Quickly become unprofitable, potentially taking away from any profit that has been Created. This has led to many miners setting their rigs to only start mining once the
Value of a currency has passed a certain level, website developer or design

Due to the thin profit margins, ASICs chips are a godsend. The high efficiencies shave off That electricity cost, allowing miners to maximize their profits and reduce their upkeep. In Fact, ASIC chips are so perfect for crypto that almost nobody mines Bitcoin and Litecoin With non-ASIC miners – it just doesn’t make sense.

Why the ASIC Story Isn’t Over Yet

There are countless cryptocurrencies being released constantly, but the ASIC miners that Are on the market are catering towards a limited few. Originally just bitcoin was the Target, but ASIC miners are now being made to mine Piratecoin, Zcash, Ethereum & EthereumClassic. That’s still only a handful of currencies that can be mined with pre-Bought ASIC miners. There is a large potential for a player to identify a coin they want to Mine and then be the first to commission the design of an ASIC miner. It will give them a Great advantage over all other miners of the currency, leading to a sizeable share of the Currency market if done at scale.

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