bitcoin mining energy consumption

It’s a tough time to launch bitcoin mining hardware. As Block Explorer recently reported, bitcoin mining profits turned negative earlier this year. Not only that, but pressure is building over the energy consumption and environmental impact of bitcoin mining.

But that hasn’t stopped Bitmain, the world’s largest bitcoin mining company, from building the next-generation mining equipment.

Bitmain’s new ASIC miners are set to launch Thursday 8th November, but will they reduce energy consumption?

ASIC explained: ASIC miners, or Application Specific Integrated Circuits, are super-powerful processing chips that focus on just one task, in this case, cryptocurrency mining. They are different to normal graphics cards or computer chips which are multi-purpose.

Everything we know about the new Bitmain ASIC Miners

Bitmain is launching two new devices on Thursday: the S15 and T15

Specific details, however, are sparse. We don’t yet know the price, features, or specs of the two devices.

Bitmain has only eluded to the launch via a tweet and empty product pages

Will the new Bitmain Miner Reduce Energy Consumption?

Bitmain’s co-founder and CEO Jihan Wu revealed some information about the forthcoming technology in a speech in September.

He suggested the new miners would “achieve a ratio of energy consumption to mining capacity that is as low as 42J/TH.”

To put that in perspective, Bitmain’s current top-of-the-range miner (Antminer-S9) runs at 96J/TH. In other words, the new miners are significantly more energy efficient than its predecessors.

The current Bitmain Antminer S9

Environmental Impact of Bitcoin Mining

The news comes in the same week as a new research paper which claims bitcoin mining is three-times as expensive as mining the same value of gold.

A further study suggests bitcoin mining consumes the equivalent amount of energy as the entire country of Austria.

The new Bitmain miners may go a small way to lowering the very real impact of bitcoin mining on the world around us. 

7nm Chip Technology

The extra efficiency comes from Bitmain’s new 7nm chip technology. As explained by Jihan Wu, the 7nm Finfet technology is more powerful and more efficient than before. With “more than a billion transistors,” it ushers in a “new era of high-efficiency.”

Of course, nothing is confirmed until Bitmain reveals the full specifications of the new models. Expect more details when the miners are made available for purchase tomorrow.

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Despite the Venezuelan government embracing cryptocurrency with open arms – even launching their own oil-backed Petro cryptocurrency in an effort to solve the country’s economic crisis – according to a new report from local Venezuelan media, the country has taken a stand against cryptocurrency mining, outright banning related computer equipment from entering the country.

The report states that the Venezuelan government made a policy change at the end of April that restricts computer equipment such as GPUs or ASIC miners. Customs authorities have been seizing related devices received by air and sea since the change went into effect.

Shipping companies such as Liberty Express and DHL, who ship these mining devices to Venezuela on behalf of their customers, have either updated their pages on restricted products entering Venezuela to include mining equipment or have sent out notices to their customers notifying them of the changes to avoid any inconveniences they may experience as a result of the policy change.

The policy change has already gone into effect, but only on a temporary basis until officials from the National Association of Cryptocurrencies meet with the Superintendence of Cryptoactives and Related Venezuelan Activities to address the issue next week.

Weeks ago, Superintendent Carlos Vargas indicated that the country was evaluating authorizing companies to import digital mining equipment to sell in Venezuela:

“We are in an evaluation process to select and authorize companies that are qualified to import and market digital mining equipment and be responsible for the respective guarantees in our country.”

Vargas warned individuals mining cryptocurrency to be “prudent at the moment of acquiring the equipment since until now no company has been endorsed or certified,” by Venezuelan regulators.

Considering Vargas’ statement, the ban appears to be temporary until the government finalizes authorizing company’s to begin importing mining equipment for resale in Venezuela.

On April 6th, at 16:44:02 UTC (block 1546000), the privacy-oriented cryptocurrency Monero successfully performed its scheduled hard fork. Which, among other updates, hardened the cryptocurrency against ASIC miners.

As a result of the PoW change, various forks have appeared that intend to maintain the old blockchain, stating that the existence of ASICs for the cryptocurrency is good.

ASIC Resistance

The Monero community first began to suspect that an ASIC was in play in January, when the hashrate began to increase rapidly. Though at the time, the Monero community believed that developing an ASIC for CryptoNote would be prohibitively expensive.

Monero reported hash rate – bitinfocharts.com

The suspicions were proved correct when Bitmain announced its AntMiner X3 ASIC in mid-march alongside other ASIC announcements. Though these announcements occurred not long after the Monero team announced that it would be changing the PoW algorithm to set back any ASIC miners.

Other features added

One of the notable changes made over the hard fork is support for the ledger nano hardware wallet. Otherwise, sub-addresses and multi-signature wallets were added to the reference wallet.

You can read the full changelog on the Monero team’s blog post.

Results

While the full extent of the hashrate drop is still unknown, the difficulty algorithm has begun to lower the difficulty. At the time of writing, monerod reported a network hashrate of 645.63 MH/s and a difficulty of 77475745059. It is expected that the difficulty and therefore reported hashrate will have normalized around block 1546720.