Mining cryptocurrencies such as Bitcoin has been popular for a number of years now, and there have been several methods of mining that have been used. You may have heard of both GPU mining and Bitcoin ASIC mining colocation, but you are not sure which of these is the better option, or what they can do. The goal of both are the same – to solve blocks and mine Bitcoin or other cryptocurrencies – but they work much differently. We will look at the differences between these two choices, and let you know which one the clear victor is when mining for Bitcoin.
What Is GPU Mining and What Are the Pros and Cons?
GPU mining utilizes the graphics processing units of a computer to function and perform the mining tasks. When Bitcoin was first created and mining for cryptocurrencies became popular, CPUs were used. It was possible to mine right from home with relative ease. These were later replaced with GPUs for mining, and it was still possible to mine the currencies from home.
They were popular because they could mine any type of coin, and they were good at complex calculations. It was generally quite easy to find graphics processing units at fair prices, and they were easy to keep at home. They go into standard hardware that might be available to you, and they tend to have a high resale value.
However, as time wore on and mining for cryptocurrency became more difficult, the GPUs have started to fall out of favor. They are just not as powerful or efficient as the ASIC miners. They have a higher power draw. You would need to have a substantial number of them to equal an ASIC, which would mean an even greater power draw, which could reduce or even negate a profit. Making a profit on any coin that has ASIC hardware available is impossible with a GPU today.
What Is ASIC Mining and What Are the Pros and Cons?
ASIC mining hardware is dedicated to just one thing – mining for certain types of cryptocurrency. This makes them the perfect solution for Bitcoin and Litecoin, for example. They tend to draw far less power than a GPU, making them highly efficient. They have extremely high hash rates, and they tend to be small and relatively light. Ultimately, they are going to have a much higher profit margin than a GPU.
One of the only real cons to these machines is the fact that they have a high-entry point. The cost of the top-end machines tends to be around $2,000 for a single ASIC miner. They can also only mine certain types of coins, and they have a relatively short lifespan, as there are always new models coming out. Currently, there is no way to upgrade them.
If you are going to be mining for Bitcoin or Litecoin, then you will certainly want to go with an ASIC miner. While there is a higher cost of entry, it is really the only way that you could make a profit mining today.
With other coins, such as Ethereum, it could still be possible to use a GPU for mining. However, you always want to make sure that you have the fastest hash rate possible, and that means going with ASIC if you can afford it.
So, which is the winner? Antminer is a good choice and DragonMint 16Ts seem to deliver fast miners as well. The winner is the one that will work with the types of coin that you want to mine, naturally. Just make sure you run the numbers to make sure it is going to be profitable for you.
