First ASIC Bitcoin mining hardware being shipped by BitSynCom LCC

ASIC, AvalonThe company BitSynCom has announced the Avalon V1, a modular system with ASIC processors which are optimized to mine Bitcoins. The developer claims a speed gain of up to a factor of 50.

The mining which is really brute forcing hashes is often done with GPUs or FCPGAs. The miners are rewarded with Bitcoins. Due to the design of Bitcoin the difficulty to do so rises as only a limited amount of bitcoins are available per block. This forces miners to use more powerful mining hardware if they want to keep making profit.

The Avalon V1 which has the dimension of an average desktop computer will be a good solution for the declining profitability of the energy-hungry GPUs. The system, which was designed by the 23-year-old Guo Yifu contains ASICs, an abbreviation for application-specific integrated circuits. These processors are designed specifically for mining Bitcoins.

An Avalon V1 motherboard with four hashing units would account for approximately 89 Gigahases per second. You would need 250 HD 5850 GPUs to do the same. While every HD5850 would need 200W of power the Avalon V1 only requires 500 to 600W under full load. The device which you can only purchase with Bitcoins costs $1,500 and would, with the current difficulty and price generate 200-300 dollars per day.

Guo said he developed the Avalon to ensure no one has a monopoly on the mining of Bitcoins. Mining Bitcoins will also become less attractive for hackers using botnets as the hashrate of normal computers will become irrelevant.

Several ASIC systems have been announced last year but this one is the first to hit the market. ASIC mining systems will be very profitable at the start but as more and more ASIC systems will start mining the difficulty of the network will rise which will result in declining profits.

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