The decentralization potential of a cryptocurrency can be measured by the “universality” of the equipment used by its mining participants. By universality I mean the acquisition costs and ease of use offered by a piece of equipment to encourage its adoption among users, especially among those without technical expertise. Generally speaking, the more specialized and less common the equipment used to mine a network, the more centralized its technology will become over time.
This is where mini ASICs come in, mining devices that are characterized by combining low acquisition prices and low operating costs (in terms of electricity consumption and maintenance or replacement). These gadgets, which can be purchased ready to use or built by one However, according to open source guidelines, they resemble in several ways the old GPU mining, which still exists but has seen its usefulness and scope reduced.
Why do I say that mini ASIC mining is an old thing with new ways?
One of the similarities that the new mini ASICs have with the old GPUs is that they are suitable for, although not exclusive to, mining from the comfort of home. They do not require, like large-scale mining with ultra-competitive ASICs, the purchase or rental of large spaces to create data centers, which must be perfectly equipped to optimize mining and reduce production costs. Needless to say, data centers of this type can only be built by large public companies, medium-scale mining farms or powerful private capital. The individual, retail user hardly has space among so many monumental entities.
Another similarity between these two types of devices is in its price. While high-performance ASICs for mining bitcoin and cryptocurrencies have a market price that ranges between USD 20,000 and USD 2,000, Canaan’s new mini miner, Avalon 3 (4 TH/s), has a cost close to 250 dollars, as reported by CriptoNoticias.
Another one like the Bitaxe Touch (1.6TH/s), also recently launched, is priced at $300. Meanwhile, a cost-effective graphics card like the AMD RX 7900 similar low price rangebetween USD 200 and 300. Of course, the price of graphics cards depends on the opportunity, and is strongly influenced by periods of market demand. In any case, These are usually much cheaper than the most sought-after ASICs for mining Bitcoin and Dogecoin.
An additional similarity between the two is that both mini ASICs and GPUs can be expressly multipurpose and not be determined by the exercise of a single activity: cryptocurrency mining. Although the multipurpose quality of mini ASICs is in the discovery phase (they have previously been used to heat homes), there have already been more advances from certain manufacturers in this regard, allowing the heating temperature to be regulated, among other adjustments.
An example of this is Canaan’s line of new mini miners, which includes the Avalon Mini 3 (37.5 TH/s) and the Avalon Nano S3 (6TH/s). They have the express function of functioning as home heaters and allow the temperature and electricity consumption to be regulated. Other miners, such as the Bitaxe Touch, function as an informational interface capable of offering data about the Bitcoin chain and news about the crypto asset in real time.
GPUs are also multipurpose: although they were originally designed to render video game graphics and graphics applications, their ability to perform parallel calculations has given them other use cases. For example: in cryptocurrency mining and in the training of machine learning models with artificial intelligence, among others.
Mining with mini ASICs: a welcome surprise
For the reasons I mentioned, especially those regarding the convenience, accessibility and universality of these mini ASICs, I consider that individual mining, aimed at the decentralization of Bitcoin and cryptocurrencies, is reviving after a season where she was considered diminished.
I think this is positive for the industry, even more so when the reception of these mini gadgets by the public and the community was unexpected. Mini ASICs represent a breath of fresh air, and perhaps a new source of motivation to make Bitcoin mining attractive, which has been stagnant in the workplaces of the most successful and wealthy corporations.
That said, Nor is it about any revolution or a redistribution of wealth within Bitcoin. The hashrate power and BTC reserves concentrated by large mining corporations will continue to rule the industry, even in the face of a massive introduction of mini ASICs and small miners into the Bitcoin network.
Disclaimer: The views and opinions expressed in this article belong to its author and do not necessarily reflect those of CriptoNoticias. The author’s opinion is for informational purposes and under no circumstances constitutes an investment recommendation or financial advice.
