Cryptocurrencies are the blend of the newest IT technologies and finance. The use of digital coins helps companies and individuals fit seamlessly into the digital economy. Therefore, even online gambling venues like HellSpin have started accepting cryptocurrencies as a payment method. To learn more about crypto payments, you can even visit their website. Within the vast expanse of cryptocurrencies, crypto mining has become a profitable venture for all tech enthusiasts. People who want to generate income in the crypto space should consider this opportunity.
Crypto mining demands high-performance mining computers. When it comes to mining equipment, much of the focus is on ASICs (application-specific integrated circuits) or GPUs (graphics processing units). Each type of mining equipment has its pros and cons. The choice of mining equipment depends on several factors such as electricity consumption, price, and resale possibility.
Number of hashes per second is the hashrate. ASIC-based miners offer hashrates up to 20 TH/s. Their superiority among miners is undeniable. When it comes to hashrates, they are the best ones. Especially if the miner mines only one type of digital coin and avoids ASIC-resistant coins.
Traditional graphic processing units require more power consumption than ASICs. ASICs have higher computing power and have to work 24/7. Therefore, miners who use them can expect significant energy costs. GPUs don’t run at 100% of their power all the time and require less energy consumption. An average ASIC miner uses 800-900 watts of energy to mint a $1 cryptocurrency. A GPU miner requires only 100-200 watts for the same amount of digital money.
Setting up GPU mining rigs is more complicated than setting up ASIC-based rigs. It requires the right miner, additional accessories, support against hang-ups, and so on. In addition, the price of GPU-based rigs itself is higher than ASIC-based rigs if you convert the price to mining power.
A Graphic Processing Unit (GPU) requires standard hardware. Therefore, GPU-based miners are öfter bigger than ASIC-based ones. A GPU mining rig with several units usually takes up more room than an ASIC one.
High Initial Development Costs
The development of ASIC-based miners is often tied to massive initial investments. Moreover, ASICs can’t be reprogrammed or adapted to other cryptocurrencies. If the company decides to switch to the other type of mining equipment, they need to invest in new hardware. High development costs and limited flexibility keep ASIC prices quite high.
An ASIC-based miner can perform one type of crypto mining and solve only a limited number of crypto algorithms. Even. high-performance ASIC miners can only mine eleven algorithms in a specific order, making it incompatible with any changes in the chain. Once a rig is not suitable for the chosen algorithm, it becomes useless. Sometimes you can switch to other coins, but it’s the same risk of losing money.
Moreover, ASICs aren’t versatile in terms of mining cryptocurrencies. If an ASIC-based mining computer can mine Bitcoins, most likely it would be worthless for mining Ether, Litecoin, or other cryptocurrencies. If we consider flexibility to accommodate updates, a GPU miner also would be a better solution than an ASIC.
Impact On Blockchain
ASICs are killing the decentralization of cryptocurrencies, as many crypto enthusiasts think. To support a cryptocurrency network, the choice falls on GPUs.
ASICs are hard to resell because of their limited functionality. An ASIC miner is purposefully designed for mining. You can’t resell it to gamers. It is also hard to resell used ASIC equipment to miners because competitive mining requires high-performance new computers. An outdated GPU will always find many buyers on the market among average users and gamers.
An ASIC-based mining rig is cheaper than a GPU-based miner. Moreover, to set up a GPU mining rig, you need to purchase RAM, motherboard, and other computer parts. Altogether, a GPU mining rig can be much more expensive than an ASIC.