Earlier, not a lot of people paid any attention to cryptocurrency and its related technologies. The market hype regarding Bitcoin mining started a few years back. Back then, it was quite easy to start mining Bitcoin and the equipment that was needed to produce this digital currency wasn’t too expensive.
According to popular reports, only a simple and standard CPU (Central Processing Unit) is enough to deal with widespread Bitcoin operations. Lately, huge machines and high-powered ASIC devices are being used lately. While more Bitcoins were mined, and the remaining was diminished, the cost of Bitcoin mining started increasing steadily.
Gradually, cloud Bitcoin mining developed when more and more cryptocurrency experts became interested in mining their own units and left trading existing ones on exchanges. With these, Bitcoin miners were able to pool their resources together and cut down on costs as well, like equipment and electricity. In the meantime, Bitcoin miners were able to improve their hash rate, and the block reward was divided among them.
As a result, with time, the computer CPU wasn’t enough and miners started using the GPU or the Graphics Processing Unit. On top of that, AMD graphics cards were required over the normal Nvidia cards in order to improve the software architecture and proper power efficiency. Meanwhile, FPGA mining started to reach the limelight when models started offering 400MH/s at a mere 15 watts. Presently, a much more popular method this day is ASIC mining that contains chips specifically produced for Bitcoin mining.
The hardware of ASIC is capable of producing hundreds and thousands of calculations per second which increases the mining rate and keeps associated power source low. The ASIC Bitcoin mining firms became highly popular with a costing estimated at $80,000 in electricity while it generated 20-25 Bitcoins per day. Considering the current price of Bitcoin, this is quite a healthy investment and could offer more returns while the demand strengthens.