GPU Mining (Graphics Processing Unit)
Many people have set up their own at-home amateur crypto mining machines using their gaming computers & netting a surprising amount each month. ASIC machines are among the best in the industry to mine with, however, they can be very costly to the average miner. But a decent graphics card (or few) is all you need to get started on the cheap.
GPU Mining is drastically faster and more efficient than CPU mining and you can buy some for a decent price on Amazon.
Last June Chinese online trading platform AliExpress reported that its users began to look more actively for specific models of graphics cards that were most suitable for creating mining farms.
The most popular AMD (Advanced Micro Devices) graphics cards, at the time of this writing, are the Radeon RX500 series for their attractive price point & powerful chip sets.
Shop AMD Graphics Cards on Amazon
& for Nvidia users, the GTX 10 series is the most widely used for GPU mining
GPU Mining Pros
- Availability of video cards – you could come, buy, and do the assembly.
- The warranty period for the video cards and the components for the rig is 1-3 years if something breaks you can return it.
- You can place it in your house – it’s not noisy and doesn’t heat up a lot.
- You can always sell it – all parts are usable in the average computer, and the video cards are demanded by gamers.
- You can mine different cryptocurrencies – video cards support A LOT OF algorithms.
GPU Mining Cons
- Assembly of the rig – you need skilled hands.
- You need to know how to do the following – settings, Windows installation, and overclocking your video card. As an alternative, you can install a ready-to-go Linux distributive (for example HiveOS), but in this case, quite often you’ll still have to deal with settings as well.
- The mining rig takes up more space then ASIC.
- Currently the pay off is slower than with ASIC.
Experts, however, warn mining equipment manufacturers that demand for their products is going to shrink. According to Joseph Moore, an analyst at American bank holding company Morgan Stanley, mining may become an economically unprofitable activity in 2018.
“We believe that total graphics sales for ethereum mining in 2017 will be $800 million or so, and will decline by 50% in 2018.”
In Moore’s opinion, the first reason for this downturn is a planned decline in the overall block reward on the ethereum network from 5 ETH to 3 ETH. The second is the shift from Proof of Work (PoW) to Proof of Stake (PoS) when instead of mining power, the probability of creating a block and receiving the associated reward is proportional to a user’s ownership stake in the system.
“We believe that ethereum looks to move to a different payment verification system in the next six months, from Proof-of-Work with the use of graphics cards to Proof-of-Stake where the graphics cards are no longer needed.”
Staying Optimistic for GPU miners
Despite the potential change in consensus protocol of the Ethereum network, the head of Nvidia, Juan Zhjensjun, is sure that revenue made from GPU (graphics processing unit) sales for crypto mining would remain, asserting cryptocurrencies and blockchain are “here to stay.”
“This is a market that is not likely to go away anytime soon, and the only thing that we can probably expect is that there will be more currencies to come. It will come in a whole lot of different nations. It will emerge from time to time, and the GPU is really quite great for it.”