The Bitcoin Mining Game Has Changed

ASCI or application-specific integrated circuit machines have arrived in the Bitcoin mining marketplace. The initial machine arrived at a miner's home in late January and ever because reports have been trickling in of shipped ASCI machines finding their way into miner's Bitcoin mining rigs.

Because ASCI machines are designed specifically for the task of mining Bitcoin, they are highly efficient machines at what they are designed to do. High finish ASCI machines have a per second hash rate of more than 1 million. A common CPU operating Bitcoin mining software program has a per second hash rate of 1.5.

Needless to say the shipment of ASCI machines have been a game changer in the Bitcoin globe. CPUs are no longer even supported by Bitcoin mining software program simply because a CPU running 24 hours a day would most likely not see a Bitcoin for several years, even if it was mining in a pool.

This trend favors these interested in mining who also happen to have thousands of dollars lying about to be utilized on expensive hardware, as nicely as the early adopters of Bitcoin mining who likely have made a hefty profit from their early mining efforts. Those early profits could be rolled into the latest and greatest hardware and rig setup to continue generating Bitcoins well into the future.

Those miner who are operating relatively potent GPUs are being hit the worst by the ASCI development. The difficulty in successfully mining a block of Bitcoin has increased to a level that might make the cost of electrical energy outweigh the payout a GPU miner will see in Bitcoin from year to year.

All of this speculation is tied heavily to the stability of the cost of Bitcoin going forward. If Bitcoin stays around the current 30 usd level then innovation will continue to progress. ASCI in component has contributed to the rally that Bitcoin has seen over the final two months. The USD exchange rate for Bitcoin has soared from 10 usd to 30 usd. It is hard to discover an investment with that kind of return anyplace on the planet, so it is natural for Bitcoin to be drawing attention in recent days. But will this attention last? And if so will it bring more scrutiny and volatility than stability on the young digital currency? In the lengthy term relative stability is the one trait that Bitcoin must establish if it is to accomplish the original objective of becoming a viable and competitive currency on a world scale.

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