GPU Mining in 2024: Comparing GPUs with CPUs and ASICs in Mining
Miners provide computational power to Proof-of-Work blockchain networks to process transactions, create new coins, and ensure network security. The efficiency and results depend greatly on which devices they use. The most common types of crypto mining based on the used hardware are GPU mining, CPU mining, and ASIC mining.
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Among the three, GPU is a middle-ground choice for its capabilities, versatility, and required investment. This article explores what GPU mining is and how it is different from CPU and ASIC mining.
What Is GPU Mining?
GPUs are specialized hardware used in computers to do different tasks. The letters G.P.U. stand for “graphics processing unit”. Now popular in various fields, including mining and AI applications, GPUs were originally developed for rendering graphics mainly for video games. Bitcoin miners, being technical people, soon discovered the potential of GPUs in mining. When Bitcoin was launched in January 2009, mining was performed using CPUs (central processing units). In July 2010, a miner with the pseudonym ArtForz was the first to use graphics cards for Bitcoin mining. ArtForz got a competitive advantage and as the Bitcoin Talk chat shows was able to generate around 1700 Bitcoins in 6 days.
Bitcoin Talk discussion about generating Bitcoins with video cards. Source: www.bitcointalk.org
Because GPUs are designed to handle complex calculations, they perfectly suit mining's intensive computational demands. Miners have been acquiring a large number of GPUs to set up operations. This trend started a war between gamers and miners, as it became harder for gamers to find the much-needed microchips. GPUs in laptops and PCs are important for gamers because they provide better visual quality and reduce annoying delays.
In 2017, NVIDIA, a leading chip manufacturer produced the CMP line dedicated to professional crypto mining. Despite this, some tension between miners and gamers still exists because a number of GPUs by NVIDIA, AMD, and other manufacturers continue to be popular among miners.
Challenges of GPU Mining
Over the years, mining has evolved, presenting new challenges for GPU miners. The Bitcoin network became more competitive, and Ethereum moved to the Proof-of-Stake consensus algorithm in 2022. With the shift, Ethereum started to secure transactions not through mining but through staking coins. Validators now lock up their coins as collateral to guarantee the honesty of their work. After the change in the Ethereum protocol, many GPU miners shifted to Ethereum Classic, Dogecoin, Ravencoin, and other cryptocurrencies that continue to be minable in 2024. Another challenge is the growing GPU market, and the need to increase the hardware capacity from time to time to remain competitive. Still, GPU mining is a popular method to mine cryptocurrencies in 2024. Due to the price decline of some GPUs, miners can now invest less in hardware to join a network.
The Difference Between CPU, GPU, and ASIC Mining
Mining methods differ in computational power, ease of use, and practicality. Computational power in mining, measured by hash rate, indicates the number of calculations a device can perform per second to mine cryptocurrency. There are different mining profitability calculators to check and compare the efficiency of devices.
CPU or Central Processing Units are used in every computer and laptop. CPU crypto miners typically use ordinary computers for mining processes. Initially, when Bitcoin was launched, CPU mining was the only method for generating new coins. As of 2024, despite the advent of more powerful technologies, high-performing CPU models still provide sufficient power for mining certain cryptocurrencies, though GPUs are generally faster.
ASICs or Application Specific Integrated Circuits are capable of providing the highest computational power. ASICs lead the Bitcoin mining industry. Compared to GPUs, which measure power in mega hashes, ASICs operate at terahashes, making them significantly faster, not 1,000,000 times faster but rather indicating they operate on a different scale of measurement. The downside of ASICs is not only their higher initial investment but also their design for specific cryptocurrencies, limiting their versatility compared to GPUs and CPUs.
Conclusion
In 2024, GPU mining is one of the top methods for crypto mining. While not the most effective for Bitcoin mining due to the increased competition and profitability challenges, GPU mining is a suitable option for mining other cryptos. The profitability of GPU mining depends on mining difficulty, market fluctuations, and the required investment in hardware and energy resources.
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