Just as the time came for Bitcoin when CPU (processor) and GPU (graphics card) mining profitability dropped to zero with the appearance of new ASICs (Application-Specific Integrated Circuits), the CryptoNight algorithm is now facing a similar fate.

Perhaps most people first heard about this algorithm in connection with Monero (XMR) cryptocurrency mining, which is also used by Bytecoin (BCN) and Dashcoin (DSH). Monero (XMR) has appeared in a negative light multiple times, e.g., in connection with illegally installed browser-based JavaScript mining programs, typically by the CoinHive miner.

Most people started gaining knowledge and experience in XMR mining with either the NiceHash or MinerGate client programs, and although it was runnable even on weaker configurations, its profitability was already questionable. Even more advanced processors were unable to achieve outstanding speeds; here are some personal examples:

• Intel I7-3930K: 200-220 Hash/second (130 Watt TDP)
• AMD Ryzen 1800X: 400-450 Hash/second (95 Watt TDP)

However, the time has come for something to happen here too, and this something is now happening with the arrival of the Bitmain Antminer X3 ASIC mining machine . The device is capable of 220 KH/second performance at 550 Watt consumption... Compared to the processors above, that's +/- 220,000 Hash/second, meaning compared to the Intel i7-3930K, that's a thousandfold (1,000x!!!) performance jump. Consumption matters too, because even if we had a thousand i7-3930K units on the shelf and combined them for CryptoNight mining, with 130 Watts per unit that would be 130,000 Watts or 130 kW of electrical power. If I calculate correctly, that means approximately +/- 550-560 Amps of current... So that's industrial power, requiring substantial cable cross-sections and so on... 😀

Bitmain Antminer X3: Regarding the ASIC mining machine, Bitmain is being more cautious now, and according to their current official announcement, sales are limited, so one person can only purchase two machines in total. The first shipping deadline is May 15, 2018, and the second is June 15, 2018.

Currently, the first shipping option:

• Antminer X3 – Batch 1
• Shipping: between May 15-31, 2018
• Price: 11,999 USD (45081409 BTC; 12.73860331 BCH; 72.48618117 LTC;)
• +/- 3 million forints for the first-order Bitmain Antminer X3 plus the power supply price, shipping fee, and customs handling cost (which must be paid to the Hungarian Customs Office)
• Order: https://shop.bitmain.com/productDetail.htm?pid=000201803132107063379CD35Gxy064F

Our other option:

• Antminer X3 – Batch 2
• Shipping: between June 15-31, 2018
• Price: 7,599 USD (0.92506589 BTC; 8.15878483 BCH; 46.07269530 LTC;)
• Approximately 2 million forints is the price for the Bitmain Antminer X3 available in the second batch plus the power supply, shipping costs, and customs processing fees (which must be paid to the domestic customs office)
• Order: https://shop.bitmain.com/productDetail.htm?pid=00020180314213415366s4au3Xw306A4

In total, if we want the two Antminer X3 mining machines limited per person, we need to make an investment of 5-6 million forints. That's not pocket change, but if we consider that according to CryptoCompare's estimate, the machine could bring us approximately $70,000 annual profit, which is 17-18 million forints, then our initial 5-6 million forint investment doesn't seem like so much.

BUT!!!

Let's not forget that after the appearance of such mining machines and the commissioning of the first wave, the network capacity and difficulty level will rise to such a level that only a fraction of the currently available profit will be mineable with these machines. The bad news is that due to the incredibly skyrocketing difficulty level, CPU or GPU mining won't be worth it more than ever before.

An interesting hypothesis is that if the situation changes so much due to the influx of incredibly high performance, how viable will browser-embedded JavaScript mining programs be... Presumably in this case they'll also be sentenced to death, because if until now a site with a few thousand monthly visitors was enough for minimal profit, and even millions of daily visitors won't bring much anymore, then browser JavaScript miners will find themselves in a hopeless situation.

The appearance of the new Bitmain Antminer X3 will raise interesting questions that will be very worth paying attention to in the future. The device offers itself at a very high purchase price, so not many people will immediately go for it, but what's much more important here is that after Bitcoin, altcoins are also outgrowing the possibility of home mining — firstly due to their price and secondly due to their physical characteristics. It's also a very interesting fact that apparently there's growing demand for power over altcoins too, if Bitmain is starting to move in such large volumes.