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Lots of hashes means lots of money.
Intel is set to enter the Bitcoin mining business. No, this doesn’t mean that it will set up mining farms, though it probably could if it wanted to. Rather, Intel is set to produce a bitcoin mining ASIC (application specific integrated circuit). The report comes via Tom’s Hardware stating that Intel is set to unveil its ‘Bonanza Mine’ chip for mining Bitcoin at the upcoming International Solid-State Circuits Conference (ISSCC).
Earlier today, Fox Business reported that crypto-mining startup GRIID has signed a contract with Intel to buy ‘BMZ2’ mining ASICs. According to the company’s S-4 filing, it’s already signed a supply agreement and that its initial orders are on track to be delivered in 2022. GRIID is said to have reserved a portion of production capacity until May 2025 which would indicate the company, and likely others too plan to buy a lot of them.
Intel’s chip will go up against those from Bitmain, currently the largest supplier of bitcoin mining hardware. It remains to be seen how Intel’s chip will perform, but given that hash rates and hashes per watt are essentially the only thing that matters, Intel will have its work cut out. Though with its advanced process technologies and vertical integration, it is well placed to make a success of it compared to other Bitcoin ASIC designers, those which rely on external foundries for manufacturing.
Bitcoin mining is different from the mining that causes havoc in the GPU markets. The Bitcoin mining algorithm uses SHA-256 and ASICs can be developed specifically to mine Bitcoin. However, while Bitcoin mining machines are very expensive and energy intensive, they are still far better at Bitcoin mining than GPUs are. Ethereum’s Ethash is designed to be resistant to ASICs and as a result is more decentralized, hence the widespread GPU mining craze.
Bitcoin mining consumes more electricity than many countries and if Intel’s mining ASIC is successful, consumption is only going to go up, something that continues to alarm environmental activists. Though repeatedly delayed, at least Ethereum is still scheduled to switch its mining consensus mechanism away from energy intensive proof of work mining to a much more efficient proof of stake model. It’s better for the environment, and it will also mean that mining demand for GPUs should all but dry up! We hope anyway.
Intel will present its Bitcoin hardware on Wednesday, February 23rd at the ISSCC conference.
Chris’ gaming experiences go back to the mid-nineties when he conned his parents into buying an ‘educational PC’ that was conveniently overpowered to play Doom and Tie Fighter. He developed a love of extreme overclocking that destroyed his savings despite the cheaper hardware on offer via his job at a PC store. To afford more LN2 he began moonlighting as a reviewer for VR-Zone before jumping the fence to work for MSI Australia. Since then, he’s gone back to journalism, enthusiastically reviewing the latest and greatest components for PC & Tech Authority, PC Powerplay and currently Australian Personal Computer magazine and PC Gamer. Chris still puts far too many hours into Borderlands 3, always striving to become a more efficient killer.
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