Monero Mining: Annoying, but a Good Sign for Investors?
Monero mining remains a hit, as was revealed by the latest ASIC creation attempt.
If it is true that “miners follow the money”, then Monero is right on the money. Beyond the already traditional voluntary, or involuntary usage of all kinds of hardware for CryptoNote mining, a recent attempt was made to sell a high-priced ASIC for the CryptoNote algorithm.
The XMR digital asset, which now hovers just above $204 after the latest sell-off, has remained attractive both as a means of digital payment, and as a mined coin offering rewards. Yet the recent bid of Bitmain to sell an ASIC angered the crypto community.
The Monero project performs series of updates to thwart the usage of ASICs. Yet some believe machines were built and exploited for months before being noticed, blaming the increased hash rate on illegal mining or botnets. The difficulty chart shows a sudden spike in difficulty in the past three months, which coincides with a rising trend of hidden mining, but some believe the hash rate may have come from a hidden mining facility.
1. Bitmain produces 1st CryptoNite asic summer 2017
2. Mine secretly from November 2017 (no asic sales)
3. Blame hashrate on botnets+hype
4. Monero announces PoW fork
5. “Wrap it up!”
6. Dump used ASICs 12k$/each right before obsolescence
— Francis Pouliot ⚡️ (@francispouliot_) March 15, 2018
It was precisely the “secret ASIC” effect which bloated the difficulty of mining in the past few months. Now, the Monero community is pushing for another update to make Monero incompatible with the machines. That update may arrive soon, and even Bitmain warned of the possibility:
“One major cryptocurrency which is using CryptoNight hash function is about to change their PoW algothrim, …