Analysts at leading research firm on wall street downgraded its stock by AMD and nVidia. As explained in the company, it became known that the largest producer of ASIC miners Bitmain started production of specialized hardware (ASIC miners) for the extraction of ether.
On Monday, the Susquehanna clients received the letter in which analyst Christopher Rolland (Rolland Christopher) wrote that they have information about what the company is Bitmain planning for several months to launch the first batch of ASIC miners that can mine cryptocurrency on algorithm Ethash algorithm Proof-of-Work, which is also used bitcoin as well as Ethereum.
«Last week, during our trip to Asia, we received confirmation that has created Bitmain ASIC miner for broadcast in the second quarter of 2018, these devices will be available,» wrote Rolland.
In addition, according to Rolland, at least 3 companies involved in the creation of ASIC miners for Ethereum, being at different stages of development.
However, to confirm this information have not yet succeeded. The only source of information remain employees of Susquehanna. At the same time, they can not give information about the technical parameters of the new product. Recall that in February, the Chinese media has already appeared rumors about the fact that Bitmain is working on ASIC for ethash and plans to start production in the summer of 2018. But according to the articles of the technical characteristics came out that the new equipment will exceed the energy efficiency of the farm on the cards not more than three times that doesn’t look final sentence for GPU-mining ether.
Ethash algorithm was designed precisely to prevent the emergence of ASIC and the centralization of mining due to very high memory requirements. Effective extraction of ETH is now only possible on GPUs. The appearance on the market of specialized devices that can get live c greater efficiency and lower costs, will lead to the loss of interest of miners to the graphics card. This will negatively affect sales of nVidia and AMD, the share price which today is in a certain dependence on the market of cryptocurrencies. That is why Susquehanna downgraded AMD shares from $13 to $7.50, and Nvidia from $215 to $200.
However, we already have a precedent with cryptocurrency Monero developers that actively oppose the emergence of special equipment. ASIC miner for Monero already announced Bimain, but in response to this, the team intends to change the algorithm for mining Monero that will significantly reduce the effectiveness of such specialized devices. Therefore, with some probability it can be argued that even if information about the existence of ASIC miners for Ethereum confirmed – the developers can also go for a change or modification of the algorithm. In addition, the transition Ethereum on PoS mining remains among the priority directions of development, and a complete withdrawal from the PoW can be expected in the first half of 2019.
Bitmain and the Fund Ethereum has yet to respond to the statements of analysts at Susquehanna.