Before you start GPU vs. ASIC mining, I would like to say something about the comparison between GPU vs. ASIC Mining in 2020? This article will pay attention to the difference between the two technologies, “GPU VS ASIC.”
People have a similar question like ” What to mine with ASIC or GPU? “Which is the better one ” After going through this article you will get a good understanding of both the technology.
Whether you are a miner or just starting, there are usually problems with newcomers choosing between ASIC & GPU.
Buying ASICs is better or setting up GPU mining equipment for mining Bitcoin, Ethereum, Litecoin, or any other Altcoins?
What is the Difference Between ASIC and GPU Cryptocurrency Mining?
In GPU vs. ASIC Mining, both use different hardware for mining, i.e., GPUs and ASICs. Both are very popular mining equipment. With GPUs, graphics cards can solve complex algorithms, while ASIC chips can solve complex algorithms for rewards.
The main difference is that ASIC is much faster than GPUs. In GPUs, While processing units are relatively flexible, the ASIC is limited to several functions, and the Currency Mining algorithm determines what coin can be mine.
Before we delve into the debate of graphics and ASIC, we should first make sure that it’s clear what mining is…
Cryptocurrency Mining
It is finding blocks of data using a dedicated computer to solve very complex mathematical problems. Solving the problem allows the miner to add new blocks to the existing blockchain to legalize the transaction.
And POW (Proof of work) is the work done to solve the blocks. When this work is completed, miner will receive a specific coin as a reward for the work and equipment used.
As the number of miners increases day by day, the difficulty of mining becomes more difficult. For coins like Bitcoin, block rewards are cut in half at regular intervals.
In short, mining has become more difficult and less profitable over time.
At first, the home desktop was sufficient for mining cryptocurrency. As time passed, the miners turned to the GPU for more hash rates, and the CPU was out of date.
There are specially designed devices for mining, called GPUs and ASICs. However, some coins can only be mined using a GPU.
ASIC Miner vs GPU Miner
Before working on a particular mining project, make sure that what you aim for and the legitimacy of the energy you use is worth your time. Search the Internet, view the market size, and access online communities associated with it.
Hashrate is an important factor for mining.
- Selecting hash rates for ASIC is easy but more accurate for GPUs.
- ASIC Miner mines according to their algorithm code, but GPUs can run on any algorithm or mine any altcoin.
What is the ASIC Mining?
ASIC ( Application-Specific Integrated Circuit ) – an abbreviation for machines that mine only certain cryptocurrency tokens. Here are several ASICs with multiple algorithms, but these models are less common.
ASIC popular Crypto-coins / Algorithms
- SHA-256Bitcoin / BTC
- ScryptLitecoin / LTC
Why Use ASIC Miner ?
- Is ASIC Miner worth it? ASIC miners are specifically designed to mine specific target coins, so they have a smaller and more compact form factor than the space-consuming GPU Mining Rigs. They are compact devices with a relatively simple setup process.
- ASIC tends to be cheaper if they compare the basic cost of ASIC to GPU mining equipment because GPU mining equipment often requires multiple GPU with complex settings, making them more expensive.
- ASIC requires an external PSU (power supply) to operate. The GPU is equipped with all the necessary hardware, only the screen, keyboard, and mouse.
- If you purchase the latest ASIC, you may see a modest return on investment.
What is GPU Mining?
Graphics Processing Unit or GPU can be used with conventional desktop and laptop computers. They are great for mining a variety of cryptocurrencies, mostly ethereum based cryptos.
As with ASIC miners, GPU miners also receive bonuses in crypto coins for solving the crypto algorithms.
There are hundreds or thousands of GPU mining crypto coins like Ethereum, BitcoinGold, Ravencoin, Feathercoin, Monaco, Vertcoin, Zcash, Monero, and many more…
Why to Use GPU ?
- Is GPU Miner worth it? Graphics processors are manufactured by leading companies such as Nvidia and AMD and are readily available in large quantities.
- No special hardware must create a graphics processor-based computer unless you are not making large scale installations.
- Unlike ASICs, GPU can mine multiple cryptocurrencies and are not based on a particular algorithm solving.
- GPU can even mine multiple crypto types at the same time.
- Adapt easily according to changing markets means it offers a more profitable possibility.
- GPU power consumption can be much lower than ASICs. Using software modifications, energy consumption can be significantly reduced by up to 25%.
GPU vs. ASIC Mining Disadvantages
GPU Mining 2020 :
- GPU Setting up a GPU rig can be a complex task. First, you need to buy a good GPU and accessories, then assembling and configuring all items.
- Having GPU server systems, they still occupy more space than ASICs.
ASIC Mining 2020 :
- ASIC miners are designed specifically for coins or specific algorithms. Also, whenever ASIC “upgrades,” the old version will become unclear, and its profitability will be greatly reduced.
- The upgrade cycle can not be predicted and is usually dominant, which means the easy discovery of end-users at the end of the product life cycle.
- ASICs are coin-based machines. If they are out of date, their resale value will be very less.
- It wasn’t easy to buy ASIC machines during the maximum profit period when they were first released. They are usually sold through pre-orders due to high demand.
- ASICs energy consumption and heat generation are very high. And they also produce high noise with built-in cooling fans.
Similar: Find out the Best bitcoin mining software!
CONCLUSION
Every device has some pros and cons, so choosing GPU or ASIC final decision is up to you.
Choose the device that best suits your needs and limitations, based on the cost of electricity, where you can install it, your computer knowledge, and your location.
If your equipment budget is important, if you have access to very low-cost electricity and going for the long run to mine a single coin, then ASIC mining would be a better choice.
But, if you want to have the ability to mine a variety of coins, GPU mining would be the better choice.
At Last, cryptocurrency and blockchain technology are mainly used for decentralization. So join the crypto world to enjoy and learn the future technology.