Cryptocurrencies are a hot topic these days. One of the first cryptocurrencies ever created, Bitcoin (white paper), was released in 2009 by Satoshi Nakamoto — an unknown person or group who has since become one of crypto’s most famous figures!
With this new form of digital currency came mining – where powerful computers use their processing power to solve complex algorithms and add accurate blocks of transactions onto blockchains globally.
Central Processing Units (CPUs) were initially used. They were, however, superseded by Graphics Processing Units (GPU) and Application-Specific Integrated Circuits (ASICs) (ASICs).
The majority of miners are undecided on which mining hardware to employ.
As a result, there is a struggle for domination between ASIC and GPU mining.
This review will discuss the advantages, disadvantages, and profitability of ASICs and GPUs.
Miners are torn between which mining hardware to use when they set up their rigs to mine as many cryptocurrencies possible with the lowest electricity cost – but not for long because things changed drastically!
More recently, ASICs took over from GPUs; this review will reveal some pros/cons on each side along with information on how profitable these two choices may be for you depending upon your needs: whether you are an investor or someone who just wants coins ASAP?
The Crypto Mining Process
When we talk about cryptocurrency, mining is not something that comes to mind.
When you hear the word ‘mining,’ mining comes to mind for traditional assets like coal, diamond, and gold. When it comes to cryptocurrency, however, this process becomes a different story.
However, when it comes down the line and you think of what cryptocurrencies are all made up for; there’s no doubt in my mind where this process would take place: The Blockchain!
Mining refers to recording transactions on an immutable ledger while using computers (and subsequently electricity) as their tool-of-trade.
Computers are utilized to do the mining operation. They would first consolidate bitcoin transactions into a block and then add the block to the blockchain when it reaches its maximum capacity.
Miners are the backbone of Bitcoin, and they’re vital to how it operates as a currency. The process of mining Bitcoins is a lot like solving complicated math puzzles. Miners use their own computing power (CPU, GPU, or ASICs) and solve complex algorithms to process transactions on blocks that get added onto one another.
Not only do miners use hardware to solve these algorithms, but the first miner that does so also gets rewarded! Plus, there are also fees earned in processing all those transactions on your block, too – talk about some good pocket change!!
The Purpose of GPU Mining
Graphics cards (Mining hardware) are used to verify transactions and create new crypto tokens.
GPUs outperform CPU hardware in a variety of ways. For example, a conventional GPU can process up to 3200 32-bit instructions per clock, 800 times faster than a CPU capable of processing only four 32-bit instructions per clock.
GPUs are the perfect choice for those looking to mine cryptocurrencies. They can do more than CPUs and even better in some cases! With their large amount of Arithmetic Logic Units (ALU), GPUs can perform better throughout the crypto mining process.
In addition, GPUs are faster than the CPU at performing calculations as ALUs enable them to perform mathematical computations.
The GPU was originally designed for gaming and still retains value even if you decide to quit mining. The GPU is a resalable product when compared to the ASIC.
The graphics cards were created to render images in video games and have kept their value even if you decide not to mine anymore. Thus, they still maintain marketability, unlike an algorithm mining device with less future potential for sale or trade.
The roaring demand for cryptocurrency is driving up prices of graphics processing units (GPUs). GPUs are optimal for mining Ethereum, Ethereum Classic, Monero, Ravencoin, and other algorithm-based coins.
Although the use of GPU mining for years has made it a popular and effective way to mine coins, new competition from ASIC has caused profitability woes.
The Application Specific Integrated Circuits (ASIC) are better at performing hash calculations than either CPUs or GPUs, which means they’re able to do more work per second and solve complicated cryptographic equations much faster with lower power consumption. Hence, ASIC chips are more powerful at solving the SHA256 algorithm.
The best way to be a successful miner is by using professional mining computers (ASIC mining) that can mine one specific algorithm alone. These ASICs are more powerful and consume less electricity than the GPUs, making them better for those who want higher earnings per hour compared to their cost of ownership over time and being space efficient.
Singe-coin mining has been profitable for years now, but the mining process can be even more lucrative with ASIC crypto-mining hardware. For instance, Bitcoin and Litecoin can be mined much faster than before, thanks in part to these specialized machines called “ASICs.”
Furthermore, these types of devices have very high hash rates, which makes them efficient at solving complex mathematical problems, including mining and processing transactions on a Proof-of-Work blockchain – all while being affordable enough so as not to discourage newcomers from getting involved at this exciting stage!
ASIC vs. GPU Mining: Pros and Cons
ASIC Mining Hardware
ASICs require less energy than GPUs. Additionally, it boasts an exceptional H/W efficiency.
ASICs are physically smaller than GPUs. As a result, they take up less room.
ASICs earn more than their rivals.
In contrast to GPUs, an ASIC mines specific coins. This renders the device utterly ineffective for mining other cryptocurrencies.
As you can resell GPUs, ASICs are a different issue. ASICS has a low resale value.
ASIC miners frequently have a 3- or 6-month official warranty, depending on the model.
GPU Mining Hardware
GPUs have a high resale value, and when not in use for mining, they may be used for other purposes such as gaming or artificial intelligence.
GPUs are extremely efficient in performing complex computations.
Upgradeable GPUs are available. Since it is ordinary hardware, it can simply be upgraded and resold for a higher price than an ASIC.
Although the GPU is excellent hardware, it is not as powerful or as efficient as the ASIC.
GPU mining hardware can be huge, thick, and cumbersome. Nevertheless, ASIC hardware is more compact and capable of performing twice as many functions.
Miners will discover that ASIC hardware is more profitable when mining particular coins like Bitcoin and Litecoin.
ASIC vs. GPU: Mining Profitability
Mining is more expensive as a retail investment due to the scarcity of resources.
However, more variables contribute to the unpleasantness of mining, one of which is that mining difficulty has grown.
The difficulty is distributed according to the network’s computing power. Thus, as more people join the mining network, it becomes harder and less profitable for those who remain on their own – but not impossible!
The rise in difficulty could be seen as an inconvenience when you’re just starting out; however, this only lasts until your hardware gets better enough that it can keep up with demand (or find another way).
Which Mining Hardware is Best for You?
Choosing the proper hardware for mining is a key component in cryptocurrency. Different cryptocurrencies can be mined with different types of software and hardware, so it’s essential to know which ones you want to mine before looking at specific models.
If you are interested in altcoins, GPUs may seem like an affordable option. Still, many things must be considered, such as power consumption, Market Price, Trading Volume, Mining Algorithm, and Hashrate Charts when choosing GPU miners to mine altcoins.
Mining altcoins can be a lucrative but complicated endeavor. The more you know about your chosen coin and its potential for growth, the better chance you have at finding success mining it.