How Bitmain Will Ruin Ethereum Miners: Performance Analysis of the E3 ASIC

Earlier this month, rumors emerged that Bitmain was secretly developing a powerful Ethereum ASIC. This ASIC was rumored to have higher performance and power efficiency when compared to existing hardware on the market.

Bitmain Unveils the E3

The rumor has been confirmed – Bitmain unveiled the E3 on April 3rd, and the Ethereum community and miners have reason to worry.

The E3 Ethereum ASIC

The safety of the Ethereum network is at stake.

As significant players like Bitmain corner the market, it’s possible for the company as a single actor to control a plurality of mining power in the network. The more centralized the network, the more vulnerable to malicious actors and 51% attacks.

Bitmain claims that the E3 has the following stats:

  • 180 MH/s (megahashes per second)
  • 800 watts of electricity consumption
  • Retail price: $800

How does this compare to other conventional GPUs?

Analysis of the E3 Compared to Other Hardware

Based on data from, here are the stats for some common mining GPUs:

Performance data based on; GPU prices collected by averaging the three lowest-priced listings on

The RX570, RX580, Vega 56, and Vega 64 are AMD cards, while the 1070TI, 1080, and 1080Ti are Nvidia cards. Note that AMD cards are considered to be more effective at solving the Ethash algorithm, while Nvidia cards are better at solving another commonly used algorithm, Equihash.

Based on these numbers, an E3 is roughly as powerful as six RX570s.

Analysis of Electricity Consumption and Cost

First, watts per MH/s. This number represents the number of watts it takes to produce a single MH/s of mining power. The RX570 and 1080Ti both outperform the E3 by a slim margin. That being said, Bitmain has claimed that:

“These are the conservative estimates. We expect the miners to deliver higher performance and efficiency when they are ready to ship.”

What is mind-boggling is the cost-effectiveness of the E3. For every $4.4 dollars, the E3 has an additional MH/s. A mega hash is a term to describe how effective a microchip is at solving the Ethash algorithm and represents a million hashes per second.

Compared to other cards the E3 is roughly three times more cost-effective per MH/s in comparison to other hardware.

Rapid Obsolescence of Ethereum ASICs

Released in 2014, the Antminer S3 is now nearly worthless

One positive aspect for GPU miners is depreciation. Like other ASICs, an E3 Ethereum miner is worthless once it is obsolete.

That means that depreciation expense for the E3 is much higher when compared to graphics cards; assuming there isn’t a switch to PoS, in two years, the E3 will likely become worthless as other ASICs are developed and difficulty increases.

On the other hand, GPUs have a robust secondary market. The top-performing graphics cards of today, like those listed above, are currently some of the most powerful cards on the market for virtual-reality, machine learning, and high-performance gaming.

Although newer more powerful cards will be released, these cards can still find a home as mid-tier consumer graphics cards.

Depreciation by the Numbers

The Nvidia GTX 970 is still a top choice for gamers

Last generation cards like the Nvidia GTX 970, 970Ti, and 980 retailed at $329, $549, and $649 respectively.

The secondary market for these cards still exists even though these cards are not cost-effective for mining.

Based on data collected from eBay, over roughly three years the cards mentioned above have depreciated approximately 50% from MSRP when factoring in selling costs such as shipping and seller fees.

Current graphics cards should see similar depreciation schedules from MSRP. You can expect your graphics cards to lose 50% of their value over the next three years.

Mining difficulty has increased steadily despite the shortage of GPUs. Bitmain’s production and usage of the E3 may underpin the increase in difficulty.

However, because of inflated market prices, many miners purchased these cards for double MSRP. This results in higher losses for the miner as they resell the card. With higher difficulty, lower margins, and now the E3, it’s likely that prices for graphics cards decrease as demand decreases and difficulty adjusts to the new ASIC.

Nvidia’s strong sales are partially a result of demand from mining

Gamers can finally have their graphics cards back.

The situation is bad news for Ethereum miners. It is said that Bitmain mines with its hardware before selling it to the public, explaining the recent spike in Ethereum proceeding the announcement of the E3.

Moreover, it means that Bitmain has already made its money and is looking to unload the E3, possibly to hedge themselves against a potential hard-fork of Ethereum.

Related Story: Bitmain’s Rumored F3 Miner Potentially Disruptive to Ethereum

Nvidia and AMD should also be worried. Cryptocurrency mining has substantially contributed to the demand for their graphics cards. Miners are a hugely profitable segment for the two companies. AMD and Nvidia need to develop chips that can compete with the E3 or risk losing market share to entrants like Bitmain.

In all of this commotion, it is small-time miners who will suffer.


If you liked the article above the story on the left provides more background as to why Ethereum ASICs are harmful to the network.


Did you like this article? Join us.

Get real-time updates and breaking news.

Join Us on Telegram

DISCLAIMER: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before making any investment decisions. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.

Be the first to comment

Leave a Reply

Your email address will not be published.


Privacy Policy is committed to safeguarding your privacy. Contact us at if you have any questions or problems regarding the use of your Personal Data and we will gladly assist you.

By using this site or/and our services, you consent to the Processing of your Personal Data as described in this Privacy Policy.

Table of Contents

  1. Definitions used in this Policy
  2. Data protection principles we follow
  3. What rights do you have regarding your Personal Data
  4. What Personal Data we gather about you
  5. How we use your Personal Data
  6. Who else has access to your Personal Data
  7. How we secure your data
  8. Information about cookies
  9. Contact information


Personal Data – any information relating to an identified or identifiable natural person.
Processing – any operation or set of operations which is performed on Personal Data or on sets of Personal Data.
Data subject – a natural person whose Personal Data is being Processed.
Child – a natural person under 16 years of age.
We/us (either capitalized or not)

Data Protection Principles

We promise to follow the following data protection principles:

  • Processing is lawful, fair, transparent. Our Processing activities have lawful grounds. We always consider your rights before Processing Personal Data. We will provide you information regarding Processing upon request.
  • Processing is limited to the purpose. Our Processing activities fit the purpose for which Personal Data was gathered.
  • Processing is done with minimal data. We only gather and Process the minimal amount of Personal Data required for any purpose.
  • Processing is limited with a time period. We will not store your personal data for longer than needed.
  • We will do our best to ensure the accuracy of data.
  • We will do our best to ensure the integrity and confidentiality of data.

Data Subject’s rights

The Data Subject has the following rights:

  1. Right to information – meaning you have to right to know whether your Personal Data is being processed; what data is gathered, from where it is obtained and why and by whom it is processed.
  2. Right to access – meaning you have the right to access the data collected from/about you. This includes your right to request and obtain a copy of your Personal Data gathered.
  3. Right to rectification – meaning you have the right to request rectification or erasure of your Personal Data that is inaccurate or incomplete.
  4. Right to erasure – meaning in certain circumstances you can request for your Personal Data to be erased from our records.
  5. Right to restrict processing – meaning where certain conditions apply, you have the right to restrict the Processing of your Personal Data.
  6. Right to object to processing – meaning in certain cases you have the right to object to Processing of your Personal Data, for example in the case of direct marketing.
  7. Right to object to automated Processing – meaning you have the right to object to automated Processing, including profiling; and not to be subject to a decision based solely on automated Processing. This right you can exercise whenever there is an outcome of the profiling that produces legal effects concerning or significantly affecting you.
  8. Right to data portability – you have the right to obtain your Personal Data in a machine-readable format or if it is feasible, as a direct transfer from one Processor to another.
  9. Right to lodge a complaint – in the event that we refuse your request under the Rights of Access, we will provide you with a reason as to why. If you are not satisfied with the way your request has been handled please contact us.
  10. Right for the help of supervisory authority – meaning you have the right for the help of a supervisory authority and the right for other legal remedies such as claiming damages.
  11. Right to withdraw consent – you have the right withdraw any given consent for Processing of your Personal Data.

Data we gather

Information you have provided us with
This might be your e-mail address, name, billing address, home address etc – mainly information that is necessary for delivering you a product/service or to enhance your customer experience with us. We save the information you provide us with in order for you to comment or perform other activities on the website. This information includes, for example, your name and e-mail address.

Information automatically collected about you
This includes information that is automatically stored by cookies and other session tools. For example, your shopping cart information, your IP address, your shopping history (if there is any) etc. This information is used to improve your customer experience. When you use our services or look at the contents of our website, your activities may be logged.

Information from our partners
We gather information from our trusted partners with confirmation that they have legal grounds to share that information with us. This is either information you have provided them directly with or that they have gathered about you on other legal grounds. See the list of our partners here.

Publicly available information
We might gather information about you that is publicly available.

How we use your Personal Data

We use your Personal Data in order to:

  • provide our service to you. This includes for example registering your account; providing you with other products and services that you have requested; providing you with promotional items at your request and communicating with you in relation to those products and services; communicating and interacting with you; and notifying you of changes to any services.
  • enhance your customer experience;
  • fulfil an obligation under law or contract;

We use your Personal Data on legitimate grounds and/or with your Consent.

On the grounds of entering into a contract or fulfilling contractual obligations, we Process your Personal Data for the following purposes:

  • to identify you;
  • to provide you a service or to send/offer you a product;
  • to communicate either for sales or invoicing;

On the ground of legitimate interest, we Process your Personal Data for the following purposes:

  • to send you personalized offers* (from us and/or our carefully selected partners);
  • to administer and analyse our client base (purchasing behaviour and history) in order to improve the quality, variety, and availability of products/ services offered/provided;
  • to conduct questionnaires concerning client satisfaction;

As long as you have not informed us otherwise, we consider offering you products/services that are similar or same to your purchasing history/browsing behaviour to be our legitimate interest.

With your consent we Process your Personal Data for the following purposes:

  • to send you newsletters and campaign offers (from us and/or our carefully selected partners);
  • for other purposes we have asked your consent for;

We Process your Personal Data in order to fulfil obligation rising from law and/or use your Personal Data for options provided by law. We reserve the right to anonymise Personal Data gathered and to use any such data. We will use data outside the scope of this Policy only when it is anonymised. We save your billing information and other information gathered about you for as long as needed for accounting purposes or other obligations deriving from law, but not longer than 1 year.

We might process your Personal Data for additional purposes that are not mentioned here, but are compatible with the original purpose for which the data was gathered. To do this, we will ensure that:

  • the link between purposes, context and nature of Personal Data is suitable for further Processing;
  • the further Processing would not harm your interests and
  • there would be appropriate safeguard for Processing.

We will inform you of any further Processing and purposes.

Who else can access your Personal Data

We do not share your Personal Data with strangers. Personal Data about you is in some cases provided to our trusted partners in order to either make providing the service to you possible or to enhance your customer experience. We share your data with:

Our processing partners:


Our business partners:


Connected third parties:


We only work with Processing partners who are able to ensure adequate level of protection to your Personal Data. We disclose your Personal Data to third parties or public officials when we are legally obliged to do so. We might disclose your Personal Data to third parties if you have consented to it or if there are other legal grounds for it.

How we secure your data

We do our best to keep your Personal Data safe. We use safe protocols for communication and transferring data (such as HTTPS). We use anonymising and pseudonymising where suitable. We monitor our systems for possible vulnerabilities and attacks.

Even though we try our best we can not guarantee the security of information. However, we promise to notify suitable authorities of data breaches. We will also notify you if there is a threat to your rights or interests. We will do everything we reasonably can to prevent security breaches and to assist authorities should any breaches occur.

If you have an account with us, note that you have to keep your username and password secret.


We do not intend to collect or knowingly collect information from children. We do not target children with our services.

Cookies and other technologies we use

We use cookies and/or similar technologies to analyse customer behaviour, administer the website, track users’ movements, and to collect information about users. This is done in order to personalize and enhance your experience with us.

A cookie is a tiny text file stored on your computer. Cookies store information that is used to help make sites work. Only we can access the cookies created by our website. You can control your cookies at the browser level. Choosing to disable cookies may hinder your use of certain functions.

We use cookies for the following purposes:

  • Necessary cookies – these cookies are required for you to be able to use some important features on our website, such as logging in. These cookies don’t collect any personal information.
  • Functionality cookies – these cookies provide functionality that makes using our service more convenient and makes providing more personalised features possible. For example, they might remember your name and e-mail in comment forms so you don’t have to re-enter this information next time when commenting.
  • Analytics cookies – these cookies are used to track the use and performance of our website and services
  • Advertising cookies – these cookies are used to deliver advertisements that are relevant to you and to your interests. In addition, they are used to limit the number of times you see an advertisement. They are usually placed to the website by advertising networks with the website operator’s permission. These cookies remember that you have visited a website and this information is shared with other organisations such as advertisers. Often targeting or advertising cookies will be linked to site functionality provided by the other organisation.

You can remove cookies stored in your computer via your browser settings. Alternatively, you can control some 3rd party cookies by using a privacy enhancement platform such as or For more information about cookies, visit

We use Google Analytics to measure traffic on our website. Google has their own Privacy Policy which you can review here. If you’d like to opt out of tracking by Google Analytics, visit the Google Analytics opt-out page.

Read more about cookies on our Cookie Policy

Contact Information

email: [email protected]

Changes to this Privacy Policy

We reserve the right to make change to this Privacy Policy.

You can configure your Internet browser, by changing its options, to stop accepting cookies completely or to prompt you before accepting a cookie from the website you visit. If you do not accept cookies, however, you may not be able to use all portions of the WideBitcoin Websites or all functionality of the Services.

Please note that disabling these technologies may interfere with the performance and features of the Services.

You may also disable cookies on the WideBitcoin Sites by modifying your settings here:

Visitor comments may be checked through an automated spam detection service.

Last Update: May 25, 2018