Trying to completely grasp how Bitcoin mining works might be a tough task for many as it is really a complex topic. Bitcoin mining uses all of the computer’s resources to solve complex mathematical calculations as quickly as possible. However, that is not the purpose of this article.
Bitcoin mining has undergone a cracking transformation since its inception in 2009. It has advanced real quickly from using CPUs to Graphic Processing Units (GPUs) once miners realized CPUs were no longer efficient due to computation advancement. GPUs consumed less power and increased mining speed (hash rate).
However, everything changed in 2011 when mining became more complex and different manufacturers saw the need for Application-Specific Integrated Circuits (ASIC) – microchips made for a specific purpose. This sophisticated technology known as ASIC Miners ensure a 100x increase in hashing power, as well as reduces electricity consumption in comparison to the previously used technologies.
Overview of the best manufacturers of ASIC miners
Bitmain is a Chinese start-up founded in 2013 and has become the biggest supplier of bitcoin mining gears. They were reported to have raised $450 million in funding backed by large players such as Sequoia Capital, the majority of which came during the “pre-IPO” round. According to Reuters, Bitmain officially filed for an IPO on the Hong Kong Stock Exchange on the 26th of September 2018.
Bitmain miners are priced around $1,100 with a warranty of three months. The cost and profitability will depend on the type of miner you choose.
Another Chinese company selling mining equipment. Their Bloomberg profile says that they are working with advisers on a Hong Kong IPO. Ebang is the only company using 14 nm technology and their miners are efficient and stable. Ebang miners are priced anywhere from $700 – $1,100 with models from 6.3 to 9 TH/s.
Canaan, one of the biggest manufacturers of Bitcoin mining chips and devices was reported to have raised about $46.9 million in funding used to develop the “Avalon controller” model. On May 15, 2018, Canaan filed for an IPO with the Hong Kong Stock Exchange which is still in draft form and pending approval. Canaan sells ASIC Miners, but at a lower volume and controls about a 15% market share when compared to Bitmain’s 70%.
The new ASIC start-up is considered by some to be the best and most efficient, currently matched only by Bitmain. According to the team, millions of dollars were invested to develop the Dragonmint T16; a top mining hardware running at 220-240 V. the miner consumes 0.075 J/GH with hashing power at 16 Th/s.