Bitland has developed the first Ethereum ASIC miner

Image Source: elevenews.com

Mining hardware maker Bitland ( Bitmain) has begun production of the Ethernet Square -specific integrated circuit (ASIC) mining machine.

Although Bitland is the largest ASIC supplier (occupying 70-80% of the current ASIC market) and is the first company to put the product on the market, we have learned that at least three other companies are developing Ethereum 's ASICs are all at different stages of development.

Because an ASIC chip is used for a specific application, they can maximize the encrypted money mining efficiency, but the role of the otherwise very small.

So far, Ethash been not support the use of ASIC, which allows mining Ethereum and other similar computer by using common in the general-purpose GPU chip encryption currency .

As two leading GPU manufacturing companies, NVIDIA and AMD are from last year's encryption currency benefited from price inflation, which is also not a small impact on the mining industry, in fact, even many investors these two companies The stock is seen as an "agent stock" in the cryptocurrency industry.

An Ethernet Square ASIC release may not cause a significant reduction in demand related to mining GPU, but encryption currency change on mining algorithms, such as Monroe (Monero) has pledged its mining algorithms will change on a regular basis to maintain ASIC The "resistance" may have a considerable impact on AMD's revenue.

In fact, AMD warned in its recently released annual report that the miners’ reduced purchases of mining machines may have a “material negative impact” on GPU demand.

Therefore, Susquehanna lowered the target price of AMD and Nvidia from US$13 per share and US$215 per share to US$7.5 per share and US$200 per share, respectively.