ASICs for cryptocurrency mining: the best ASIC miners, comparison of ASICs, calculation of profitability and payback

ASIC miner is a device designed for mining cryptocurrencies, that is, performing complex calculations in order to find a certain value. When cryptocurrencies first appeared, anyone could mine using only their own computer. But today the complexity of calculations has increased so much (if we talk about Bitcoin) that it is impossible to do without specialized equipment.

The editors of Profinvestment.com offer an overview of the functionality of ASIC miners and current models.

ASIC miner

Video review of connecting and setting up the popular ASIC Antminer S17 from Bitmain:

Comparison of ASIC miners from different manufacturers

Here is a comparison of various ASIC models for mining cryptocurrencies using the SHA-256, ETHASH, X11, Equihash, Scrypt, Lyra2REv2 algorithms.

The best ASIC miners for mining Bitcoin using the SHA-256 algorithm

Comparison of popular ASICs for Bitcoin mining on SHA-256, based on their main characteristics:

ASIC miners for mining using the ETHASH algorithm (Ethereum)

ASIC miners for mining on the X11 algorithm (Dash)

ASIC miners for mining on the Equihash (Zcash) algorithm

ASIC miners for mining using the Scrypt algorithm (Litecoin)

ASIC miners for mining using the Lyra2REv2 algorithm (Verge)

Selecting an ASIC miner

The choice of a specific ASIC miner model to purchase depends on the individual circumstances of the future owner. Someone wants to buy one ASIC and put it in a spare room at home or on the balcony; and some have a whole room, like a warehouse or garage, where you can set up a full-fledged mining farm. When choosing equipment, all key characteristics are taken into account - hashrate, electricity consumption, as well as noise level and required cooling. For calculations, it is better to use special calculators to calculate mining profitability.

MicroBT Whatsminer M30S++ - “Thor’s hammer” for Bitcoin mining

Chinese technology giant Micro BT develops and sells integrated circuits and chips for AI and mining equipment. The company employs employees with more than 15 years of experience in creating chips. It is not surprising that it was within the walls of this vendor that the most productive ASIC as of early August 2022 was born - Whatsminer M30S++ (hereinafter - according to the resource asicminervalue.com).

Whatsminer M30S++ is a high-performance machine that will be released in October 2022. It has the following characteristics:

With a five-cent socket, the profitability from one miner per month reaches 1,020 USD. Let's consider the monthly profitability and payback of 24 ASIC Whatsminer M30S++:

24 x 1,020 = 24,480 USD per month will bring 24 ASICs

The cost of ASIC in the best case, when interacting with an adequate supplier and under loyal delivery conditions, is about 8,000 USD :

8,000 x 24 = 192,000 USD cost 24 ASICs .

192,000/24,480 = 7.8 months is the payback period for 24 ASICs, taking into account energy costs. This is possible if the current Bitcoin rate remains within 40,000 USD.

Advantages of ASIC MicroBT Whatsminer M30S++

• the most productive model;
• durable aluminum alloy body;
• powerful fans;
• adequate return on investment.

Disadvantages of ASIC MicroBT Whatsminer M30S++

• solid dimensions;
• high noise level;
• high heat.

Principle of operation

ASIC stands for Special Purpose Integrated Circuit. This is a chip designed strictly to fulfill specific purposes. Such chips are created for various tasks, from controlling mobile phones to audio processing, but the cryptocurrency industry is especially interested in ASICs designed specifically for mining existing cryptographic algorithms.

Mining is performing complex calculations in search of a given number (hash). To find this number, the mining hardware, be it an ASIC or a video card, must perform a lot of operations in a limited time - whoever finds it first will receive a cryptographic system reward. To increase the chance of making a profit, miners join together in pools. But it still makes sense to buy more powerful equipment, since the reward is distributed among the pool participants according to their contribution to the process.

ASIC consists of several main elements:

• board with a set of chips;
• memory stick;
• power unit;
• coolers;
• connector

Video review of the analysis of the Bitmain S9 ASIC:

Each cryptocurrency operates on the basis of its own hash algorithm, and based on this, the ASIC miner is selected. For example, Bitcoin miners work with the SHA-256 algorithm; Litecoin – with the Scrypt algorithm. A miner developed for a particular algorithm can also be used to mine other coins that use the same algorithm. In addition, miners differ in size and power.

Canaan AvalonMiner 1246 - an attempt to overtake the champions

Canaan is another company coming from the Middle Kingdom. In the historical reference you can find a mention that they are the creators of the world’s first ASIC in 2013. “Canaan” is less known than other manufacturers from our selection, but its latest model deserves attention.

Avalon 1246 is released under the motto “Be happy, keep mining.” Well, the underlying philosophy is clear, but what about the “hardware” component?

With an electricity tariff of 0.05 USD per 1 kWh, the profitability from one miner per month reaches 786 USD. Let's consider the monthly profitability and payback of 24 ASIC AvalonMiner 1246:

24 x 786 = 18,864 USD per month will bring 24 ASICs .

The estimated price of a new ASIC, taking into account the seller’s commission and delivery in a more or less acceptable way, will be about 7,000 USD :

7,000 x 24 = 168,000 USD cost 24 ASICs

213,600/23,880 = 8.9 months is the payback period for 24 ASICs, taking into account energy costs.

Benefits of Canaan AvalonMiner 1246

• the chips were originally designed for AI;
• compact design;
• easier to find for purchase.

Disadvantages of Canaan AvalonMiner 1246

• low energy efficiency;
• loses to competitors in terms of hashrate.

What types of ASICs are there?

what kind of ASIC miners are there?
There are three main types of ASIC miners :

1. Professional. High-power devices that consume more than a kilowatt of energy per hour are equipped with integrated power supplies and the best cooling systems. Show better energy efficiency and performance. An example is Antminer S9, one of the most popular ASICs in the world.
2. For home mining. They have average characteristics in terms of power and energy consumption. Examples - Innosilicon A4+ LTCMaster, Antminer L3++, Baikal-X. Consumption is in the range of 600-800 W. The quality of the case materials and internal components is slightly lower than that of professional models.
3. Compact. Connects to USB and consumes little power. Of course, their power leaves much to be desired, but they are often chosen for their convenience - all you need to do is connect the device to a PC. Examples of such models: Bitmain Antrouter R1-LTC, Gekko Science 2PAC BM1384, etc.

   
   ASIC miner Bitmain Antrouter R1-LTC

Manufacturers of ASIC miners

The ASIC miner market is dominated by a few corporations, most of them located in China.

Bitmain

ASICs from Bitmain
Bitmain Technology - the company has been operating since 2013 and is the most famous manufacturer of integrated circuits. The headquarters is located in Beijing (China). Bitmain produces and sells chips, server hardware, as well as a range of cloud solutions using blockchain and artificial intelligence. But the main direction is computing integrated circuits. ASICs from Bitmain make up almost 75% of the global market.

Innosilicon

Asic miners from Innosilicon
Innosilicon produces more than 30 million Asic miners per year, and the company has development teams in China and North America. Devices of this brand are cheaper than Bitmain, but have good performance and flexible settings. Models are available for all popular mining algorithms, as well as power supplies for them. Large production volumes and competent technical support make the products of this company quite in demand.

Baikal

ASIC miners from Baikal
Baikal is a company also registered in China and has a staff of engineers from all over the world. He has been engaged in research and development in the field of chips and software since 2008, and since 2013 he has been releasing ASICs for the SHA-256 algorithm. In 2016, the Baikal mini X11 miner model, which is quite popular today, was released, showing good stability and economic efficiency.

Bitfury

ASIC miners from Bitfury
The Bitfury company is registered in the UK, founded in 2011. Carries out developments in the field of blockchain, Bitcoin, artificial intelligence and complex computing. In addition to the production of ASICs, it supports various types of platforms in the cryptocurrency industry - payment systems, analytical platforms, educational services.

Other, lesser-known manufacturers are Canaan, Obelisk, Halong Mining, GMO miner, FusionSilicon, etc. New players regularly appear on the market.

How to calculate payback and profitability

The main cost of ASIC mining is, of course, the hardware, which can cost thousands of dollars. The second indicator is the cost of electricity, especially if you live in a region with high electricity tariffs. When choosing a device, you need to calculate how much it will consume per month, and how much will go from your budget to pay bills.

You can derive the formula:

M - W = P,

where M is the income received as a result of mining, W is the cost of electricity and maintenance, P is net profit.

However, before you start making a profit, you need to recoup your investment in the mining rig. After this moment, every ruble earned will go into earnings.

Calculator for calculating the profitability of ASICs

In order not to count manually, you can use one of the mining calculators available on the Internet:

1. CryptoCompare. One of the easiest calculators to use. However, it has a minus - it does not take into account changes in the complexity of the network, but they also have a significant impact on profitability.

   
   calculator for calculating the profitability of ASICs from CryptoCompare

2. WhatToMine. One of the most useful mining tools. Based on the completed data, the site calculates power consumption, hashrate, and the most profitable coins in your case. And he will even select the best exchanges for trading these coins.

   
   ASIC miner calculator from WhatToMine

3. CoinWarz. Compared to the others, this calculator is more complex and functional; it even allows you to enter the cost of equipment in order to calculate how much it will pay off at the current exchange rate. The calculation is based on an analysis of more than 100 coins, which allows you to make the optimal choice.

4. 
   CoinWarz calculator

Calculation of profitability and payback of ASICs

For example, the calculation for the popular ASIC miner Antminer S17PRO in the CoinWarz calculator:

With the cost of electricity $0.1 per kWh and a pool commission of 1%, the profitability will be $1.12. The approximate payback period (ROI) of ASIC Antminer S17PRO will be: Cost/$1.12 = 1787 days. This is an approximate calculation and does not take into account changes in difficulty and miner rewards, operating costs, other purchase costs, etc.

The biggest impact on profitability right now is the cost of electricity. The cheaper it is, the faster the investment will return and ASICs will begin to generate net profit.

Bitmain Antminer S19 Pro (110Th) - a gift from the market leader

Bitmain is rightfully considered the market leader in ASIC manufacturers. He, perhaps more often than anyone else, releases new models and experiments with their hashrate and energy efficiency. Antminer S9j devices were very popular at one time, for which we also made a comparison.

The pinnacle of ASIC development for this company is the Antminer S19 Pro model. It also has quite high performance, along with other unique characteristics, such as 7 nm chips.

With an electricity cost of 0.05 USD per 1 kWh, the profitability from one miner per month reaches 995 USD. Let's consider the monthly profitability and payback of 24 ASIC Antminer S19 Pro:

24 x 995 = 23,880 USD per month will bring 24 ASICs.

The cost of ASIC, provided that you find a not too greedy retailer who will deliver in the most compromise way, will be about 8,900 USD :

8,900 x 24 = 213,600 USD cost 24 ASICs

213,600/23,880 = 8.9 months is the payback period for 24 ASICs, taking into account energy costs.

Advantages of ASIC Bitmain Antminer S19 Pro

• one of the most advanced models;
• a device from a recognizable and trusted brand;
• better energy efficiency;
• “cold” and fairly quiet ASIC.

Disadvantages of ASIC Bitmain Antminer S19 Pro

• very massive body;
• high price;
• problems with ordering and delivery.

Prospects for using ASICs in the future

ASIC mining today is a rather controversial issue that causes a lot of disagreement. Part of the community opposes them, pointing to too much control of the Bitcoin network and harm to the principles of decentralization. Manufacturing corporations like Bitmain have a huge impact on the industry.

Others, on the contrary, support the introduction of ASICs, believing that such interest in Bitcoin and cryptocurrency in general indicates faith in the future of cryptographic networks (this is the opinion of Bitmain press secretary Nishant Sharma).

From the point of view of users, mining has long grown from a couple of dozen enthusiasts mining cryptocurrency on processors, and has become a full-scale industrial enterprise. Now this can no longer be called easy money. Cryptocurrencies are attracting more and more miners as different companies introduce them into circulation.

Theoretically, anyone can still start mining - but for this they will have to work hard - invest in equipment, arrange a room and cooling, etc. It is impossible to make a profit without a large initial investment.

However, there is an opinion that the situation with ASIC mining will improve. Software development does not stand still, and the devices themselves are becoming more and more economical as new technologies are introduced. This is a positive development scenario for those who just want to mine at home for themselves.

Advantages and disadvantages

pros

• Given the high complexity of the network, only ASICs can provide decent income.
• Compared to video card farms, ASIC consumes less power.
• An ASIC miner takes up less space than a GPU farm.
• The device is easier to install and configure by simply following the instructions.

Minuses

• High price.
• Reselling an outdated or unnecessary device is almost impossible.
• One device allows you to mine coins of only one algorithm.
• The large number of ASICs used and mining on them on an industrial scale are detrimental to the decentralization of the network.
• "Obsolescence".

Mining in 2021-2022 with BiXBiT

So, we have determined that it may take 8-9 months to pay for new ASICs. This is not the worst payback option in recent years, thanks to the high Bitcoin rate. However, the real lucky ones are those who already have, say, an Antminer S17, have paid for it and want to get additional advantages in mining without purchasing new mining equipment. This can be done using immersion cooling for mining devices.

You may ask, “Why do I need to buy your immersion cooling unit? I can continue to mine fine on air, who needs these extra expenses? Firstly, you need it to remain competitive in cryptocurrency mining in 2021 and compete on an equal footing for rewards with new and modern ASICs.

For clarity, we present a summary table for the ASICs we reviewed and mining on available equipment using immersion cooling. BiXBiT installations allow you to increase the computing power of ASICs by 40-50% compared to standard performance when using proprietary firmware .

Therefore, for example, mining “in the air” with a five-cent “socket”, you would earn a net profit per year on S17 of only 36,480 USD at the current level of production. By placing and overclocking the equipment in immersion cooling, you will receive 130,000 USD more net profit per year !

That is why our rack is not an extra high-tech “toy”, but a necessity in the conditions of cryptocurrency mining in 2022.

*Yield per year is indicated taking into account energy costs.

**The price indicated is for a BiXBiT rack with immersion cooling, fully equipped with a cooling tower to remove excess heat.

Let’s compare mining with free electricity. Here the benefits after purchasing our installation are even more eloquent. Instead of the standard 60 thousand dollars of net profit, you will receive almost 150 thousand dollars more profit!

*The price indicated is for a BiXBiT rack with immersion cooling, fully equipped with a cooling tower to remove excess heat.

Thus, with the current high Bitcoin rate, neither buyers of new Whatsminers nor owners of used models like Antminer S17 Pro will be left without profit in the first year. However, the most profitable mining option remains the purchase of a BiXBiT immersion cooling rack. In conditions of free electricity, it guarantees a net profit of at least 1.5 times higher than when purchasing new ASICs . At a five-cent “socket”, it is at least 1.65 times higher than even the most powerful and energy-efficient set of ASICs, Whatsminer .

Questions and answers

• What is an ASIC miner?
• It is an integrated circuit designed to solve specific problems. In this particular case, to carry out complex calculations leading to confirmation of transactions and receipt of rewards.

• What types of ASICs are there?
• Industrial, home and compact. They differ in the speed of calculations (hash rate), electricity consumption, dimensions, and cost.

• How to choose an ASIC?
• First, you need to assess your financial capabilities, then consider all models from a suitable price category and calculate their payback and profitability. Make a choice based on this.

• How to calculate profitability?
• You can do it manually, but there are special mining calculators. They allow you to enter the initial data, and fill in the rest yourself (network complexity, current exchange rates). Based on this, preliminary profitability values ​​are generated.

• How much does an ASIC cost?
• Depending on the characteristics, the device can cost from several tens to several thousand dollars.

• Does it make sense to start mining in 2020?
• In general, it makes sense, but you need to think through and calculate the entire strategy so as not to remain in the red.

• Where to sell mined coins?
• On exchanges, cryptocurrency exchangers, p2p platforms. You can hedge on futures exchanges.