Ethereum falls after rumors of a powerful mining chip surface – TechCrunch

Rumors of a fresh ASIC mining equipment from Bitmain have driven Ethereum prices well below their one-week high of $585. An ASIC – or Application-specific integrated circuit – ter the cryptocurrency world is a chip that designers create for the specific purpose of mining a single currency. Early Bitcoin ASICs, for example, drove adoption up and then, ter some eyes, centralized Bitcoin mining te a few forearms, thereby thwarting the decentralized ethos of die-hard cryptocurrency ventilatoren.

According to a CNBC report, analyst Christopher Rolland visited China where he unearthed rumors of a fresh ASIC chip dedicated to Ethereum mining.

“During our travels through Asia last week, wij confirmed that Bitmain has already developed an ASIC [application-specific integrated circuit] for mining Ethereum, and is readying the supply chain for shipments te 2Q18,” analyst Christopher Rolland wrote te a note to clients Monday. “While Bitmain is likely to be the largest ASIC vendor (presently 70-80% of Bitcoin mining ASICs) and the very first to market with this product, wij have learned of at least three other companies working on Ethereum ASICs, all at various stages of development.”

Historically users have mined Ethereum using GPUs which, ter turn, led to the unavailability of GPUs for gaming and graphics. However, an ASIC would switch the mining equation entirely, resulting ter a certain amount of centralization spil big players – including Bitmain – created higher barrier to entry for casual miners.

“Ethereum is of the most profitable coins available for GPU mining,” said Mikhail Avady, founder of TryMining.com. “It’s going to affect a loterijlot of the market. Without understanding the hash power of thesis Bitmain machines wij can’t tell if it will make GPUs obsolete or not.”

“It can be seen spil an attack on the network. It’s a centralization problem,” he said.

Avady points out that there is a onveranderlijk debate among cryptocurrency aficionados regarding ASICs and their effect on the market. Some are expecting a stir to more mineable coins including Monero and ZCash.

“What would be bad is if there wasgoed only one Ethereum ASIC manufacturer,” he said. “But with Samsung and a duo other players getting into the spel it won’t be bad for long.”

There is also concern overheen ICO launches and actual utility of Ethereum-based clever contract tokens. “The price of ETH is becoming consolidated spil people become more realistic about blockchain technology,” said Sky Guo, CEO of Cypherium. “People are looking for higher quality blockchain projects. I believe a rebound te ETH’s price will come soon spil funk surrounding regulations commences to fade.”

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