The increase in crypto mining has seen many efficient mining machines introduced in the market which can provide great yield. The machines are capable of mining cryptocurrencies and have the potential to earn some serious bucks. However, the biggest decision a new crypto miner faces is whether to choose between an ASIC miner or a GPU mining rig. This article will explain the factors that you should be considering when setting up your mining rigs. While at the same time you will also find out which machine should you be using for maximum profitability.
What is ASIC?
ASIC or Application Specific Integrated Circuit is a machine that is used to mine specific cryptocurrencies. The machine is designed to mine specific currencies and can compute and mine those cryptocurrencies efficiently. It can provide quick profits and can be profitable depending on your desired end goal with a crypto mining machine.
What is GPU?
GPU or Graphic Processing Units are processors that have the ability to calculate anything quickly. This makes them perfect for mining multiple cryptocurrencies without restricting yourself. GPUs do not need to be upgraded often and can provide a stable profit on a regular basis. They are also perfect for small to midscale crypto mining in UAE.
Factors that affect profitability between ASIC and GPU
There are multiple factors that you should consider when buying ASIC or GPU rigs. These factors affect the profitability of mining.
The more expensive a machine is the longer it will take for you to see a return on investment. ASIC rigs are cheap but they have a high cost of running. These machines run on high power and will give maximum profit in a short term. However, with time they will not be as profitable and you may even end up paying more than you are earning.
An ASIC rig can only be used to mine specific cryptocurrency and once the efficiency of the machine is reduced the machine can not be used for any other purpose rendering it useless. GPU on the other hand is used so much more than just mining. It can be converted to serve various purposes. Or simply GPUs can be resold without hurting the value invested in purchasing them. As long as computers exist, GPU parts will also be able to sell separately as they can be used in other hardware.
ASIC vs GPU: Which is more profitable?
Even with a newer ASIC machine, it is extremely hard to compete with the profitability that can be achieved with a GPU miner. The reason is simple, GPU consumes less power to produce the same profit. There was a time when many ASIC machines were better when it came to mining cryptocurrencies with a profit, but the industry has changed significantly. There have been many coins that have adapted their software to make ASIC obsolete. While at the same time the lack of efficiency of ASIC machines makes it harder for them to compete with even basic GPUs.
ASIC miners are limited to mining a specific number of currencies quickly. While they may be able to calculate specific cryptos, they are limited to them and can not expand out of their designated circle. This makes it far less superior to GPUs that are able to provide much more usability and options to the miner.
GPUs are clearly more profitable as they are able to produce the same amount of crypto with up to 8x less power consumption. Event ASIC mining machines have a better hash rate, GPUs make up for it with the reduced expense to run the machines. However, profitability depends a lot on your intended use of the machine.
If you are looking to mine a coin that supports ASIC mining, you may be able to mine efficiently. At the same time, an ASIC rig is considerably cheaper in comparison, but they have limited functionality. GPUs on the other hand keep the options available for a miner. A lot more can be achieved and there is no need of replacing the rig to match your requirements.
If you are looking to mine for a short time span, then ASIC is the way to go. However, if you are looking to grow and mine cryptocurrency for the long term then you are better off with GPU. With a GPU unit, you will have consistent and stable mining with any crypto coin you choose.
Deciding the mining rig that you should be using is dependent on the purpose that you wish to use it and your plans with crypto mining. Depending on your desired use you can either use ASIC or GPU rigs to get the most profit out of your crypto mining. With the favorable conditions of each depending on your use, only you can decide which option will provide you with the profitability you are looking for.