Mining at ASIC in Details

Judy Rubio

ASIC is an integrated circuit created specifically for decoding puzzles based on which the blockchain of all cryptocurrencies works. It is important to remember that all cryptocurrencies operate on the basis of one or another algorithm. Therefore, ASIC, as a system designed specifically for mining, is created for a specific algorithm.

Using ASIC is much more efficient than graphics cards and processors. A mining-tuned system produces coins much faster and more efficiently than devices that are capable of this but initially have a different purpose.

Advantages of ASIC over processors and video cards

It is pointless to argue that ASIC is the best choice for mining. But let's understand in detail what this method is good for and why you should definitely pay attention to it.

Pros:

  • Ease to use. All you need to do is purchase a device and connect it. This is an obvious advantage over mining farms that you need to be able to collect - this requires certain knowledge and experience.
  • The payback of ASIC does not compare with mining farms. This is an obvious plus that attractesall newbie miners because few people want to wait for profit for many months.
  • Power consumption. ASIC require much less electricity to mine coins. It is almost impossible to catch them in terms of performance and energy consumption using other mining devices. 

Despite all these advantages, ASIC has several disadvantages:

  • Since ASIC is not as easy to buy as a video card or processor, this device is less common on the market.
  • Replacing an ASIC in the event of a malfunction or breakdown is a rather complicated process that can take more than one month. And this is a lost profit.
  • Installing ASIC in an apartment is a bad option. The device is quite noisy and needs competent care. It is necessary to take care of the presence of non-residential premises in which it will be possible to place it.
  • As a rule, ASIC devices can operate on one or two algorithms. Before you start mining, you need to think carefully and decide on a coin. Count so that the algorithm is relevant throughout the process.

Which ASIC to choose?

How not to make a mistake when buying? When choosing such important equipment, it is important to take the best, at least because the mistake in this case will be pretty costly. Here are the most important factors:

  • Hashrate efficiency. Hashrate is a unit of measure for the computing power of a device. The higher the hashrate, the higher the income.
  • Energy consumption. ASIC, like any mining device, consume electricity, but in different volumes, depending on the model.
  • Balance in price and quality

We can recommend you learn more about devices from BitFury, BitMain or Canaan companies - these are well-established manufacturers.

Payback ASIC

The main question that worries anyone involved in mining is how quickly the investment pays off and the passive income starts? What factors determine the profit?

The parameters that must be taken into account when making calculations: the hashrate and the cost of the miner, the value of the coin that you have chosen, and the correct configuration of the equipment.

An extremely useful program will come to your aid - a mining evaluation calculator. You just need to drive the source data into it:

  • The cryptocurrency you plan to mine through ASIC
  • Cost of ASIC
  • The cost of electricity that you will use

This data will be enough to understand what incomes and when you can count on. Most likely you will receive your first net profit over costs no earlier than six months later. On average, ASICs pay off in one and a half to two years from the start of mining. 

So, now you get an idea of ​​what ASIC is. Mining business with its use can bring good income if you take this seriously. Despite the ever-growing competition and increasing complexity of coin mining, mining on these devices is very popular.