Litecoin Mining Boost
Litecoin Mining Gets Big Boost
An ASIC (Application Specific Integrated Circuit) is a specially designed piece of hardware for doing the calculations to mine a specific coin and verify transactions.
This hardware is designed to perform these necessary computations and nothing else.
ASICs appeared for Bitcoin some time ago. As the price of the coin rose it made sense to have them. They didn’t always arrive on time and there were issues along the way , but they came.
It looks like 2014 will be the year that we get ASICS for Litecoin. The coin outperformed Bitcoin last year and experienced another bull-run recently. A lot of people see at least another order of magnitude increase in the price coming soon. This now makes ASICs for Litecoin viable.
Each company is taking pre-orders for its Scrypt miners and each company is promising to deliver the mining equipment this year.
Whether this is good for Litecoin or not depends on your political stance. Litecoin was originally designed with Scrypt mining, so as to be resistant to centralisation. This means it would be fairer.
There would not be a handful of large centralised companies controlling the mining power.
With the rapid increase in value of Litecoin the incentive is there to build these machines.
Of course, on the positive side, ASICs mean faster computations which mean a stronger, more robust and more secure Litecoin network.
While all these companies are taking pre-orders consumers are encouraged to conduct all the necessary checks and due-diligence. Check the scam list on bitcointalk.org.
It will be very interesting to see which companies deliver first and what effect it has on both the network and market. Should be an interesting year for Litecoin and Scrypt.