The price of Ethereum dropped by more than 100 dollars, following speculation on an ASIC which would be designed for Ethereum mining.
The Bitmain ASIC for Ethereum Mining
An ASIC is designed specifically to extract a particular cryptocurrency faster. The ASIC dedicated to the Ethereum mining, was designed by Bitmain, and the final supply chain is being prepared, including the second quarter of 2018, according to Christopher Roland – an analyst in cryptocurrency at Bitmain, the largest producer of mining farms, using ASICs.
“During our stay in Asia last week, we confirmed that Bitmain has already developed an ASIC for Ethereum mining, and is also preparing the supply chain for 2T18 shipments,” noted Rolland.
While Bitmain is probably the largest ASIC provider (currently 70-80% of Bitcoin mining ASICs) and the first to market this product, we learned that at least three other companies were working on ASICs for Ethereum.
Conventionally, Ethereum mining was exploited through graphics cards (GPUs) . They were bought on a large scale by the miners . This has resulted in the unavailability of GPUs in the consumer computing market. Their prices also went up, which angered the community.
Centralization VS Decentralization
An ASIC would completely alter the equation of Ethereum mining. This would create a degree of centralization and create a higher entry barrier for casual and novice miners. A similar situation has occurred on Bitcoin: Bitcoin dedicated ASICs have contributed to the adoption of cryptocurrency, but also to a more centralized mining pool , counteracting the decentralized philosophy in the crypto sphere.
Mikhail Avady, the founder of the TryMining website.com has commented on these ASICs by saying:
“It can be seen as an attack on the network. It is a problem of centralization. What would be bad is the existence of a single ASIC manufacturer for Ethereum, “ he revealed. “But with Samsung, and a few other players in the game, it will not be bad for a long time. “
Profitability and accessibility to the general public
The Ethereum would be one of the most profitable crypto-currencies for mining using Bitmain GPUs and ASICs, according to Avady. Other companies would have affected the market while making GPUs obsolete.
On the other hand, the manufacture of other ASIC Ethereum would reasonably maintain its price so that they are accessible to the vast majority.
Meanwhile, there are many in the cryptocurrency community who welcome the introduction of ASICs.
What do you think of ASICs for Ethereum mining? What about the Ethereum price fall following the news of ASIC Bitmain? Let us know your opinion in the comments section.