Many hashes mean lots of cash.

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bitcoin mining

Intel is set to join the Bitcoin mining industry. It doesn’t necessarily mean that Intel will set up mining farms, although it could certainly if it would like to. Instead, Intel is set to develop Bitcoin mining ASIC (application-specific integrated circuit). The report is from¬†Tom’s Hardware¬†stating that Intel will unveil its “Bonanza Mine chip to mine Bitcoin at the forthcoming International Solid-State Circuits Conference (ISSCC).

This morning,¬†Fox Business¬†revealed that crypto-mining startup GRIID has entered into a contract with Intel to purchase “BMZ2” mining ASICs. According to GRIID’s¬†S-4 report, it has already reached a supply agreement, and its first orders are scheduled to be delivered by 2022. GRIID is believed to have set aside a particular portion of its production capacity to May 2025, which suggests that the company, and possibly others, are also planning to purchase lots of these.

Intel’s chips will compete against the ones from Bitmain, the current most extensive manufacturer of Bitcoin mining software. It is yet to be determined how the Intel chip will perform in the long run, but since hash rates and hashes/watt are the primary aspects that matter, Intel will have its task to complete. With its cutting-edge technology and vertical integration, it’s ideal to be successful on its own compared with the other Bitcoin ASIC designers, those that rely on foundries outside of the company to manufacture.

Bitcoin mining is different to the mining that creates chaos in GPU markets. Bitcoin mining is other than GPU-based gaming. Bitcoin mining algorithm utilizes SHA-256, and ASICs can be designed to mine Bitcoin. But, even though Bitcoin mining machines are expensive and power-intensive, they are superior in Bitcoin mining to graphics cards. Ethereum’s Ethash is made to be indestructible to ASICs and, as a result, is decentralized, resulting in the widespread GPU mining trend.

Intel isn’t the only major company to dip into the crypto mining industry. Nvidia is a provider to Ethereum miners through its Cryptocurrency Mining Processor (CMP) cards that can be direct sales to large-scale Ethereum miners. If you’re wondering why the stocks of Nvidia cards aren’t as high and why they’re not selling them, this is as good an explanation as there is you can get right now. If company X is a client of Nvidia or AMD in the same way and decides to purchase an entire card container, the company will only be eager to fulfil the request. For miners, more for gamers.

Bitcoin mining requires more electricity than many countries, and if Intel’s ASIC succeeds, then consumption will only go up, which is causing alarm among environmentalists. While it’s been delayed repeatedly, however, at the very least, Ethereum will continue to shift its mining consensus mechanism from the high energy-intensive proof of work mining and switch to the adequate Proof of Stake model. This is better for our planet, resulting in the mining demand for GPUs will eventually stop! We’re hoping for the best.

Intel will unveil their Bitcoin hardware on February 23rd, Wednesday at the ISSCC conference.