In the dynamic industrial niche, cryptocurrencies have been successful in finding and establishing themselves as an unprecedented medium of transactions and payments. In the present time, this sector of the economy has become the focal point of some of the biggest investments from the world’s best brains and business houses as well as has been at the forefront in the development of an ecosystem which is dedicated to bringing in revolutionary innovations in the digital currency arena.
Anyone who has been into cryptocurrencies and blockchain technology is well-aware of the word “mining.” Technically, cryptocurrency mining refers to the process of verification of crypto transactions and further addition of these verified transactions into the blockchain digital ledger network. It is quite essential for a miner to have a computer system with the best-specialized hardware if he/she aspires to gain an advantage over other miners in the industry.
While entering in the field of crypto mining, people often face confusion in choosing between GPU or Graphic Processing Units mining and ASIC or Application-Specific Integrated Circuit mining. It is critically important for a person to choose technology that is flexible and adaptive as the crypto market space is highly dynamic in nature. Another major factor which is needed to be considered is the energy consumption. The initial investment incurred in a mining process setup is equally important as the running costs which are incurred daily. With a motive to earn substantial profits through ASIC mining or GPU mining, it is essential for having a high initial investment.
This article will summarize the various contrasting features, reasons, and advantages critical to the two leading crypto mining mechanisms and will try to give you an insight into the two pedagogies through a comparing window. Before considering the features, it is essential to understand the basic concept of ASIC and GPU mining.
What is ASIC mining and GPU mining?
ASIC miners serve as professionally designed mining computer systems that focus on the computing of only one specific mathematical algorithm. As they operate on one algorithm, the hardware manufacturers get a fair chance to create machines studded with space efficiency, less power consuming, more powerful, and more economical in comparison to GPU systems. One can recover the hardware costs on an ASIC miner easily within the first year as it offers substantial per day earnings.
On the other hand, GPU mining rigs operate as efficient universal computer systems that have the potential to lend support to any digital currency. This lucrative feature of the GPU mining system gives the miner complete control of the mining process. While working in sync with the best combination of software, drivers, and configuration, GPUs can allow the mining of multiple algorithms simultaneously along with a facility to switch to a new coin at any time. The miners get protected from future ASICS and price volatilities hovering over digital currencies.
A Comparing Window for ASIC Mining and GPU Mining
The data given below aims to give complete information about ASIC and GPU mining modules while drawing a sharp comparison between the two concerning an array of crucial parameters.
- Power- Power consumption remains an important factor that governs the choice of the mining computer system one needs to set-up. ASIC is known for consuming drastically less power in comparison to GPU mining systems, which draws higher power for operations.
- Hash rate- Hash rate refers to the number of hashes a miner makes in a single second. ASICs are better in terms of hash rate. In the case of GPUs, the hash rate power depends upon the type of coin one is mining. Mining of some coins is easier, and so the process wraps up in lesser time while it might take more time in case of other coins.
- Efficiency- ASICs have an unmatched efficiency, which makes them quite popular in the crypto mining industry. A Bitcoin ASIC has the potential to outperform anything else at mining bitcoin. On the other hand, GPUs are known to possess lower levels of efficiency.
- Setting-up Procedure- The setting up procedure of ASIC is quite simple as all one requires to plug and connect it, choose a pool to join, and initiate mining in a go. They have pre-built setups, and so have the minimum problems at the onset. In the case of GPUs, the setting-up process is a bit complicated as the miner will first have to invest time in preparing the rig. After the rig settlement, it is required to install OS and optimize it which certainly is not a cakewalk for any inexperienced person.
- Ease of use- ASIC mining computers are easier to use as they are designed to mine an algorithm only. As GPUs can mine several complex algorithms simultaneously, their usage requires specific knowledge and expertise beforehand.
- Affordability- An ASIC miner is relatively cheaper, and one can avail it for less than $2000 or even $1000. In the case of GPUs, a full 6-GPU rig will cost a person more than the average miner as it operates as one big modular system. The foundation of the rig will run around $500-$700. The cost of an individual GPU is quite inexpensive, and one gets to choose from a wide range of options.
- Maintenance- The maintenance of ASIC miners is quite easy as it only includes the removal of dust and oiling the fans. One needs to put in the extra effort while dealing with GPU rigs. Having basic knowledge about the temperatures and operational frequencies of graphic cards is essential for a miner before using GPUs.
- Size and Noise- In terms of size, ASICs are smaller in size but create a lot of noise and so need a separate room for installation. GPU mining rigs require a lot of space as they involve complex devices though these farms do not create noise.
- Resale value- GPUs are easier to sell off in comparison to ASICs. ASIC systems become outdated as soon as a better version enters the market, replacing the older version. This reduces its resale value in a big way.
So, if you are planning to become a successful crypto miner, keep in mind the points discussed in this article before choosing between ASIC and GPU miners. Spend your capital wisely and start earning from digital assets!!