Hello crypto miners, so in this article, we going to talk about CryptoNight ASIC. And why AMD Vega cards will become no more profitable in terms of mining cryptocurrencies.
GPU mining at tense:
CPU and GPU mining community is worried about ASIC miners. That these machines might steal their thunder.
This is because a small scale CPU and GPU mining are in a weird situation right now. We have already squeezed about as much as hashing power from a current hardware as we can, while difficulty goes up and profitability is going down along with the price of the coins.
It’s a weird situation and its actually about to get more weird if you primarily mining coins like Monero Electronium and other coins that use the CryptoNight algorithm.
And this is because of the latest announcement from the Baikal and Bitmain. That they are introducing ASIC miners for the CryptoNight algorithm.
Well As these ASIC’s come online Vega GPUs with the 2 KH/s beast might be naive. Why?
Because the powerful ASIC miners have come out to play with CryptoNight and it looks like they will hit the goal.
That’s right, Both Baikal and Bitmain have revealed new machines Baikal’s Giant-N and Antminer X3. For CryptoNight algorithm and they will be shipping out real soon.
In this article, we will take a look at what these machines are capable of and what they mean to the GPU and CPU miners, and gamers alike.
What is ASIC?
ASIC is an application specific integrated circuit and it’s a cryptocurrency mining machine that’s task with mining only one or two algorithms at most. Unlike GPU cards which aren’t generally designed for mining. ASIC miners are designed for it. And they do it very well.
Just a handful of them coming online pushes the mining difficulty of the algorithms they use to the roof. Leaving the hardware in your gaming rig in the dust.
You see it happen before with bitcoin SHA-256 algorithm.
More recently with Dash’s X11 algorithm and now it looks like it’s CryptoNight’s team to receive the ASIC miner.
Baikal’s Giant-N ASIC Miner
So the first miner we will be taking a look at is Baikal’s recently announced Giant-N miner.
According to its product page, the Giant-N is CryptoNight and CryptoNight-light miner designed to produce hash rates of 20 and 40 KH/s on the two algorithms respectively.
For reference, the best GPU for mining on the CryptoNight algorithm, Vega 56 and 64 only manage around 2KH/s with heavy optimization.
So, this thing is going to be 10 times more powerful.
Other than its crazy hash rates the miner will consume low power. The product page listed the miner will consume around 60 Watts of power.
It is a curious number because the Vega GPU’s consumes triple to that or more while mining.
So if that’s 60 Watt number is real. It would make the Giant-N one of the most efficient ASIC miner we have ever seen.
It also a relatively compact miner compare to the other ASIC on the market. The weight is only 1.8 Kg or about 4 pounds.
And the warranty is just 45 days.
So Baikal doesn’t list the price for the miner. Asking customers for requesting information via email.
But according to cryptocurrency news, you’re looking at paying $3600/miner.
But before you get your wallet ready. Multiply that number by 6 which is $21600.
Because Baikal is currently selling the miner only in batches in 6.
But if you did manage to somehow get your hands on just one miner for $3600. What kind of return would you be looking at?
Well, According to whattomine.com in calculating with an electricity cost of $0.12 / kW / hour you’re looking at the return of
- $16/day mining Monero
- $17.42 /day mining Electronium and
- $15.37/day on Sumocoin
Considering for a daily profit of $17.40 which is the most profitable. You’re looking at a return on investment time of around 208 days.
Keeping in mind the three coins I mentioned likely are the most profitable to mine. And just some of the most established names.
So, the ROI time can be significantly lower depending on the coin you mine.
The miner is currently available to order via email and well, apparently ship within 7 working days after payment is received.
Now Its. Clear that the Baikal Giant-N is a very powerful machine and could turn out a pretty decent profit.
Bitmain’s Antminer X3
But if power is what you are looking for. May I have your attention to Bitmain’s brand new Antminer X3?
Bitmain is known for producing some of the best ASIC miners around. And that doesn’t look at the change when the Antminer X3 starts shipping soon. (15-31 May)
The X3 also mines the CryptoNight algorithm.
But it’s an entirely different class all of its own.
The X3 somehow manages to produce massively hash-rates of 220KH/s which is over 10 times to Baikal’s Giant-N miner.
Of course, it does significantly consume the high power of about 550W but that’s not even 11 times power consumption as Giant-N.
It also a much heavier machine coming in at 7Kg or about 16pounds.
What isn’t all that impressive is the machine has an almost high price tag of $11999. And the device comes with a 180-days of warranty starting from the shipping date.
So using the same calculations that’s before, the X3 could bring in a profit of
- $174.99 per day mining a Monero
- $188.45/day on Electronium
- $173.37/day mining Sumocoin.
That means wit profitability of $188. The X3’s ROI times comes out to just over 64 days.
Which is kind of amazing for anyone who can actually afford the thing.
So, as always when calculating anything in the crypto-world keep in mind that profitability is extremely volatile. And your results may vary. So, don’t think that you’re going to pay that $12000 off in the time frame that I allocated.
And by mean vary. I actually mean that they will not be the same by the time you get your hands on one of these X3’s or the Giant-N.
ASICs effect on mining:
As I mentioned above Mining difficulties goes up whenever a tone of power gets thrown on to the mining network.
That difficulty increase means it’s harder to get the coins you’re mining and then you get less of them.
less coins mean lower profit.
The price of the coins could go up to offset the lower coin output as it did for a while with Bitcoin. But unless there is giant price pike in the CryptoNight coins takes out profitability numbers.
So, for everyone else including me, who is trying to keep up with their GPU’s and CPU’s we’re kind of out of luck.
When these things start coming online the difficulty of mining CryptoNight based coins will skyrocket so high that everyone mining with the hardware in there GPU mining rig it won’t be able to keep up in the race.
So, this is especially frustrating. Because CryptoNight was one of the algorithms preached for its ASIC resistance.
What is ASIC Resistance?
In case you’re unfamiliar with the term ASIC resistance. It means exactly what it sounds like. It’s an algorithm that is hard to design ASIC’s for.
This algorithm usually required memory or other components that are either too expensive or too difficult to implement into ASIC miners. But is available in many consumer machines.
Now there are many reasons asked, Why ASIC miners are bad news for the coins that run on the algorithm they mine?
The cryptocurrency is decentralized peer to peer network. It means no one can control it.
But when this powerful miner comes online to the cryptocurrency network. It allows too few people having too much control over the network. And movies it towards a centralized location with everybody who can afford to actually have these miners.
Thus moving away from decentralization. Which is kind of the whole point of cryptocurrency.
What Monero says?
MONERO have stated that.
They also stated that
So, basically, if ASIC present a threat to their decentralization. MONERO quote will perform an emergency hard fork to curb any potential threat from ASICs if needed.
It’s unclear whether many of the other coins using the CryptoNight algorithm will also consider similarly.
End of Vega Dominance:
But instead, let’s look on the bright side. Which is that gamers could get very well benefit from the whole affair.
It’s good for gamers because many GPU’s that mine the CryptoNight algorithm really well won’t be as attractive to miners.
One of the primary reason AMD Vega GPUs where snatched up by miners in the first place. Was because they were CryptoNight mining monsters. If these ASCs drives off the mining difficulty high enough, Witch they will.
Cards like RX Vega will have to switch to mining on other algorithms that might prove much less profitable.
And since miners are usually all about the bottom line holding on to the cards or buying new ones might not seem like such a smart move anymore.
I think this particularly spells a quick doom for Vega mining unlessMmonero can make a turn around on profitability. Because Monero is only one who is implementing a hard fork to get away from these ASICs
Which means that they can be the only a saving grace of CryptoNight algorithm for VEGA right now.
So, CryptoNight algorithms are really the only algorithms where Vega cards have shined. They have high Ethereum performance and otherwise.
But they make no seance to buy in a market where you can get 75% of the Ethereum cash rate from an RX570 which cost substantially less.
You get 30MH/s on a 570. You getting about 40 to 45 on a Vega.
It’s just doesn’t make a whole lot of séance to buy the Vega at its price point.
This could be the end of Vega’s dominance in the mining market.
But on other hands, Vega is not good for gaming either. Especially when you compare them against Nvidia. And if they lose their mining capabilities through these ASICs. They don’t have a great from gaming background to fall back-on unlike an RX580 or most of Nvidia’s line up.
So, All and all. These two ASIC’s are genuinely impressive. Little loud, hot and profitable machines. But they either good or bad news depending on where you stand. For people who like Monero, they are bad news. For gamers who want Vega cards, they could be good news.
And For people who bought a ton of Vega cards for mining Electronium, probably bad news.
If you can afford these ASICs they could earn you a fair bit of cash and their effect on the difficulty of the CryptoNight algorithm could leave to lower mark interest in GPUs. Making gamers a very happy indeed.
I want to know your thoughts. What do you think of the Baikal’s Giant N? What do you think of the Bitmain’s antminer X3? Are you excited for the fall of Vega? Or Are you excited about the rise of more profits from these ASIC’s on CryptoNight?
Let me know your thoughts down in the comment box.
And I don’t have an affiliate code with either Baikal or Bitmain but if you happened to find any of these ASICs or other ones that are on Amazon for individual sell. You can use our Amazon affiliate code down below.