Mining has been a hot topic for the past few years, with Bitcoin being the first popular cryptocurrency. With time, other cryptocurrencies have emerged and the mining process is no longer restricted to just Bitcoin. There are two types of miners CPU and GPU. The article will focus on what makes them different from each other in terms of power usage, performance, hardware requirements, etc.
What is Crypto Mining?
Crypto mining is the process of verifying cryptocurrency transactions by solving mathematical equations. Also what crypto-miners do is to produce valid blocks for blockchain; this helps miners to be rewarded with coins (the more computational power they have, the more often they mine a block and thus get the reward).
What is Blockchain?
Blockchain is a public ledger of all transactions that have taken place in the cryptocurrency network. A new block gets added to the existing chain after verification by miners. Blockchain can be accessed via API by any individual who wants to conduct his own mining process and earn cryptocurrencies as a reward.
Why is Mine Using CPU?
CPU mining is the oldest way of cryptocurrency mining. It was made possible since CPUs are available in just about any desktop computer. Mining with a CPU doesn’t require much processing power nor energy consumption hence it’s not profitable at all these days, but you can still start mining for educational purposes or to learn what crypto-mining is all about.
Why Mine Using GPU?
GPU mining is the most common type of crypto mining. It was made possible since GPUs are widely used for video games and hence they’re easily available in the market. Mining with GPU requires more processing power compared to CPU, thus more expensive hardware is required to be effective at mining. The computing speed of GPUs is several times faster than CPUs, so it seems to be an obvious choice for miners who want to maximize their profit.
Other Differences Between CPU And GPU Mining
The computational power of the hardware used in the two methods also varies. CPUs are generally less powerful than GPUs because they handle many different tasks while GPUs process graphics for video games and other intensive operations. GPUs can be used alongside CPUs to mine cryptocurrencies, but even then it won’t be as efficient as using dedicated ASIC hardware for mining.
CPUs and GPUs both require high-performance software that is specifically designed for mining cryptos. If you’re considering either of the two methods makes sure to check whether your hardware (CPU or GPU) is compatible with the mining software.
Some of the most common software used today for mining cryptocurrencies are:
- AMD Miner – can be installed on AMD GPUs; it supports a wide range of cryptocurrencies including Litecoins and Feathercoins. It’s also compatible with Windows and Linux operating systems. Cgminer – can be installed on Nvidia GPUs; it supports a wide range of cryptocurrencies including Litecoins, Feathercoins, and Terracoins. It’s also compatible with Windows and Linux operating systems.
- MinerGate – can be installed on CPUs and GPUs; it supports a wide range of cryptocurrencies including Bitcoins, Dogecoins, and Litecoins. It also runs on Windows, Mac, and Linux operating systems.
- Cpuminer – can be installed on CPUs; it’s compatible with Windows, Mac, and Linux operating systems.
Let your computer relax: Mining cryptocurrencies requires a lot of hardware power and processing time because the difficulty level of mining keeps increasing as more people start mining their own coins. This means that you’ll be looking to spend more and more time and money on mining in order to keep up at the rate of return for your investment. There’s no need to stress over this, however, because if you can’t afford expensive hardware or software there are alternatives such as Cloud Mining where you simply pay a service fee that gives you access to the mining power of a whole data center.
Which is Better?
the answer is that GPUs are better for mining than CPUs because they can simultaneously process graphics and handle cryptocurrency mining. CPUs can only do one or the other at a time, depending on the software you’re using. GPUs are more expensive than CPUs, but their performance is far superior. However, mining with GPUs requires a large initial investment since they consume so much power and generate so much heat that you’ll need to invest in some serious ventilation equipment before you can even begin mining.
If you don’t have enough money or space to invest in a GPU mining rig, consider using Cloud Mining where you pay a service fee that gives you access to the mining power of a whole data center. If you prefer the fun and excitement of mining yourself, purchase a setup CPU or GPU and join a mining pool to reap your reward.
Why is GPU Better?
While CPUs are good for mining Bitcoins, they don’t have the necessary performance to mine other cryptocurrencies. For these cases, you need to use GPUs because they were designed specifically for heavy mathematical computations.
Since GPUs are much more effective at mining cryptos than CPUs, many people prefer them to increase their mining profitability. However, the initial investment for a good GPU is higher than that of a CPU, so make sure you have enough money to invest before you consider getting one or more GPUs.
What Are Some GPU’S With Good Hash Rates?
Most Scrypt ASICs are only available in large sizes, making them difficult for individual miners. Instead, smaller Litecoin rigs are sold by kilo hashes per second (kh/s), or thousands of hashes per second.
- Radeon R9 295X2 – 4600 kh/s
- Sapphire AMD Radeon HD 7950 Dual-X – 600 kh/s
- Powercolor Radeon HD 7950 – 412 kh/s
- Sapphire Radeon HD 6970 – 336 kh/s
- AntMiner U3 ASIC Miner – 65-72 kh/s (requires USB hub)
Note that these are just rough estimates. Actual results will vary depending on the power of your GPU, the overclock settings that you use, the temperature of the room, and most importantly, luck.
X11 ASIC devices are also available for this purpose and they will make mining X11 crypto coins like Dash and StartCoin profitable.
In conclusion, there are many ways to mine cryptocurrencies from CPUs and GPUs to dedicated mining hardware ASICs. The choice is left entirely up to you as an investor/miner depending on your goals and budget. Do not hesitate to contact us for more information about the different ways of mining Bitcoins and other cryptocurrencies.