What is the effect of Bitmain’s ASIC-miner E3 on mining process of ETH?

10 000 question challengeCategory: Profits (trading, ICO, mining)What is the effect of Bitmain’s ASIC-miner E3 on mining process of ETH?
HowToToken Team Staff asked 3 years ago
1 Answers
HowToToken Team Staff answered 3 years ago

Mitchell Moos, in his article for cryptoslate.com, explains how the mining of ETH is going to change soon.

In general, Mitchell supposes that the whole community’s safety is at stake.

Firstly, the ASIC-miner is 6 times as powerful as RX570s graphic card that is considered among most effective instruments for mining. At the same time, E3 is roughly 3 times more cost effective in comparison to its competitors. Its Dollar/MHs rate is 4.4 what is about 3 times less than comparative rates for RX570 and RX580. This poses network under serious danger of being centralized by Bitmain and becoming vulnerable to 51% attacks.

“With higher difficulty, lower margins, and now the E3, it’s likely that prices for graphics cards decrease as demand decreases and difficulty adjusts to the new ASIC.” Graphic cards are likely to become out of fashion for Ethereum mining.

However, the author emphasizes that the E3 might also become worthless in two cases: if a new more effective ASIC-miner is out and if community switches to POS algorithm of consensus finally.