What is Bitcoin Mining Hardware (ASIC)?

What is an ASIC Bitcoin Mining Machine?

Since it’s now impossible to profitably mine Bitcoin with a standard computer, you’ll need specialized hardware called an ASIC – this is a Bitcoin mining machine.

Here’s what an ASIC miner looks like up close:

Originally, Bitcoin’s creator intended for Bitcoin to be mined on CPUs (like your laptop or desktop computer).

However, Bitcoin miners discovered they could get more hashing power from graphic cards.

Graphic cards were then surpassed by ASICs (Application Specific Integrated Circuits).

Think of a Bitcoin ASIC as specialized Bitcoin mining computers, Bitcoin mining machines, or “bitcoin generators”.

Nowadays all serious Bitcoin mining is performed on dedicated Bitcoin mining hardware ASICs, usually in thermally-regulated data-centers with low-cost electricity.

How to Find the Best Bitcoin Miner

There are some important factors to look at when determining which Bitcoin mining ASIC to buy:

Hash rate

How many hashes per second can the Bitcoin miner make? More hashes cost more, which is why efficiency is crucial.

Efficiency

You’ll want to buy the most efficient bitcoin mining hardware possible.

Right now, this is the Halong Mining Dragonmint T1. Since miners use a large amount of electricity, you want to buy one that converts the most amount of electricity into bitcoins.

Price

How much does the bitcoin miner cost?

Cheap mining hardware will mine less bitcoins, which is why efficiency and electricity usage are important. The fastest and more efficient mining hardware is going to cost more.

Don’t try to buy a miner based on only price or only hash rate. The best ASIC miner is the most efficient bitcoin miner. Aim for value.

Largest Mining Machine Manufacturers

Ebang: From China, they make Ebit machines in various types and costs.

Innosilicon: They make machines for many different coins. The T2 and T3 are made especially for Bitcoin.

Bitmain: Bitmain makes top-notch Bitcoin machines called Antminers. Almost all professional miners use Antminers.

MicroBT: Bitmain’s largest competitor. Their Whatsminer machines are famous for working well and efficiently.

Canaan Creative: One of the first to make Bitcoin machines, they created the AvalonMiner series.

Bitcoin Mining Equipment

In addition to a Bitcoin mining ASIC, you may also hear of these things that relate to ASICs:

Power supply – Bitcoin rigs need special power supplies to funnel and use electricity efficiently.

Cooling fans – Bitcoin hardware can easily overheat and stop working. Buy a sufficient amount of cooling fans to keep your hardware working.

Backup generators – You may want generators as a backup in case your main source of electricity goes down.

Temperature monitor – Required to track hardware heat levels, prevent overheating, maintain optimal performance, and safeguard the longevity of the equipment.

Liquid cooling system – Can be used to efficiently dissipate heat, ensuring stable hardware operation, maximizing performance, and preventing thermal-related damages.

Air conditioning – May be needed to regulate temperature, preventing hardware overheating, ensuring optimal performance, and extending the lifespan of mining equipment.

Solar panels – Solar panels could potentially be used to harness renewable energy, reducing electricity costs, enhancing profitability, and promoting environmentally conscious mining practices depending on your location.

Direct grid connection – May ensure consistent, uninterrupted power supply, maximizing uptime and optimizing potential mining rewards and efficiency. Some miners are also able to sell energy back to the grid at peaks times, which can be even more profitable than mining itself.

Air filtration – You’ll likely need to have workers in your mining hardware building. Ensuring they have clean air to breath will ensure safe working conditions.

Ethernet cables - May be needed for stable, direct internet connections, reducing latency and potential disruptions, ensuring efficient and uninterrupted mining operations.

Routers - A good router is needed to maintain stable connections, minimizing downtime, ensuring consistent mining, and avoiding potential lost rewards.

Fast internet - Needed to quickly receive and validate transaction data, ensuring timely participation in block creation and maximizing potential mining rewards.

As you can see, mining is a serious operation.

Important Mining Hardware Terminology to Understand

Hash Rate

Hashrate pertains to the computational power of Bitcoin mining hardware.

Expressed in hashes per second, it denotes how many calculations a miner can execute each second.

Power consumption

Power consumption of a Bitcoin mining ASIC refers to the amount of electrical energy the device uses to operate.

Expressed in watts, this metric is crucial for miners because electricity costs can significantly impact profitability.

Algorithm

The algorithm of a Bitcoin mining ASIC refers to the specific computational procedure it’s designed to execute.

Bitcoin and many other cryptocurrencies rely on the SHA-256 (Secure Hash Algorithm 256-bit) for transaction verification.

Frequently Asked Questions

Can you mine bitcoin without hardware?

It’s still technically possible to mine bitcoins without dedicated mining hardware.

However, you’ll earn less than one penny per month. Mining bitcoins on your computer will do more damage to your computer and won’t earn a profit.

So, it’s not worth it unless you’re just interested to see how the mining process works. You’re best bet is to buy dedicated hardware.

What determines Bitcoin mining machine prices?

The price of mining ASICs will depend on many factors.

The price of Bitcoin is one of the main factors. As Bitcoin’s price rises, miners become more profitable. This will create more demand for miners, and push the prices of machines higher.

Scarcity is another issue. There are only 4-6 main makers of mining machines. When new miners come out, they usually sell out instantly. This creates the need to buy miners indirectly, which creates higher prices.