Mining cryptocurrency with an ASIC

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What is an "ASIC"?

An ASIC is a machine entirely dedicated to calculating an algorithm, and so to mining of a particular cryptocurrency. An ASIC can be described as a small box that includes all the components needed to mine a specific cryptocurrency. A picture of an ASIC:

Mining asic cryptocurrency
There are different ASICs allowing the calculation of different algorithms and therefore different cryptocurrencies; a Litecoin ASIC will only calculate Scrypt, a Bitcoin ASIC will only calculate SHA-256, an ASIC for DASH will only calculate X11, etc.

For a cryptocurrency miner, an ASIC offers the advantage of directly having the best components to mine a specific cryptocurrency; but this advantage is also a disadvantage because miners have no flexibility in their mining activity; they are obliged to mine a single and unique cryptocurrency (different from an RIG which can mine different cryptocurrencies).

Another major problem with ASICs comes from the difficulty of mining. Indeed, when a lot of ASICs are made available on the market, it becomes more difficult to mine them. All ASICs with the same mining strength are pitted against each other to mine, and miners lose profitability. And that's without counting the obsolescence of ASIC against their versions 2, 3, 4, etc. which are stronger and so penalize all the older versions.

Calculation of an ASIC’s profitability

When cryptocurrency miners buy an ASIC, they know in advance the mining strength ('hash rate') and energy consumption of their machine. They can then estimate the profitability of their ASICs on different sites. Take for example an ASIC D3 Antminer. One site displays ASIC with this data:

d3 antminer ASIC profitability
An investment of USD 1,500 in an ASIC for profits of USD 20,940 per month? Don't be naive. There is a mistake, or the site sells you dreams. In this case (for those who recognize the source) it is a simple mistake.

This shows the theoretical performances of the ASIC, we can now calculate this one's profitability with cryptocurrency mining profitability calculators. Results :23/02/2018 :
profitability asic
You would therefore have to mine 24h/24 for 9 and a half months to make this purchase profitable. After that there should always be a profit ....In theory... because the difficulty of mining the cryptocurrency in question will certainly have increased, and the ASIC will be less profitable on a day-to-day basis...

Note: In the video presented at the bottom of the article you will see that the same calculation is carried out on 03/10/2017 and the profitability shown is USD 863 per month (or USD 10,506 per year); a long way from the current profitability.

How do you buy an ASIC? Where do you buy an ASIC?

Google "BUY ASIC MINING" and you will quickly find all the information you need. ASICs are for sale everywhere. Some shops have even specialized in selling boxes of ASIC for cryptocurrency miners. The main problem is not price, but delivery times (especially if ordered, but pending delivery for all buyers.)

To conclude on the mining of cryptocurrencies with an ASIC, I suggest that you watch this video; it repeats what has been said here with some additional (or even indispensable) information:

A short digression on turnkey mining solutions with an ASIC

A lot of companies start up and offer to sell you a pre-configured ASIC that you can use to mine at home. Clearly, you receive an ASIC box, and all you have to do is plug it into an electrical outlet and Internet so that it starts to mine the cryptocurrency. The cryptocurrency balance generated by the ASIC can be consulted directly on the website of the company that sold you the ASIC. And then you just have to ask to be paid.
What do you make of that?
It is a turnkey solution for homemakers who know nothing about it. This solution mainly makes the company, which receives the mined cryptocurrency, rich. You receive only a portion of the total balance of the mined cryptocurrency; your return on investment will just take longer.

My opinion about mining cryptocurrencies with an ASIC

I'm having a hard time figuring out if ASICs are for computer nerds, orreal cryptocurrency mining PROs.
I think there is just one thing to keep in mind: an ASIC is used for hard and fast mining of a single, unique cryptocurrency.
In any case, ASICs clearly lack flexibility compared to a RIG that can mine different cryptocurrencies, or that can be evolved over time.
It is clearly not a tool intended for beginners in cryptocurrency mining, even if an ASIC is presented to potentially make you believe precisely the opposite.

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