Why We Use GPU vs ASIC
Let's learn more about these types of hardware!
Application-Specific Integrated Circuit vs. Graphics Processing Unit
Introduction
ASICs are efficient, but they can only be used to mine a singular coin.
This makes you tied to that one coin - and your investment relies entirely on the future of that coin.
On the other hand, GPUs are great calculators for anything, and with a push of a button you can mine a different coin. Now you have the choice - picking and choosing when to mine and which coin to mine. This gives GPUs the upperhand and can greatly increase profits.
We use GPUs to provide you with this flexibility as the cryptocurrency market changes.
ASIC | Application-Specific Integrated Circuit
Example Coins: Bitcoin, Litecoin
Pros:
Low Power Usage
ASIC can consume drastically less power compared to GPU or CPU. The H/W efficiency of ASICs is unmatched by anything else.
Very High Hash Rates for Specific Coin
A litecoin ASIC will greatly outperform anything else at mining litecoin.
Physical Size
ASICs are usually much smaller and lighter for similar performance.
Higher Profit Margin
ASICs are so much more efficient and powerful. they are much more profitable.
ASIC can consume drastically less power compared to GPU or CPU. The H/W efficiency of ASICs is unmatched by anything else.
Very High Hash Rates for Specific Coin
A litecoin ASIC will greatly outperform anything else at mining litecoin.
Physical Size
ASICs are usually much smaller and lighter for similar performance.
Higher Profit Margin
ASICs are so much more efficient and powerful. they are much more profitable.
Cons:
Very High Entry Point
Cost can be very high.
Application-specific
A litecoin ASIC can only mine litecoins. and is completely useless for anything else.
Low Resale Value
Unlike GPUs, ASICs are worth very little used.
Short Lifespan
Bitcoin ASICS are on the 9th version currently. The previous eight versions are at a very severe disadvantage.
Can Become Obsolete Overnight
A change in the hashing algorithm. can render the ASIC useless.
Controlled by few Manufacturers
A very high cost to design and manufacture a batch of ASICs keeps most of this market. The designers of the coin often design ASICs in an attempt to stabilize the mining of the coin long term. and keep interest in that coin.
Non-upgradeable
When new ASIC comes out. old ASIC becomes obsolete. There is no way to upgrade an ASIC.
Cost can be very high.
Application-specific
A litecoin ASIC can only mine litecoins. and is completely useless for anything else.
Low Resale Value
Unlike GPUs, ASICs are worth very little used.
Short Lifespan
Bitcoin ASICS are on the 9th version currently. The previous eight versions are at a very severe disadvantage.
Can Become Obsolete Overnight
A change in the hashing algorithm. can render the ASIC useless.
Controlled by few Manufacturers
A very high cost to design and manufacture a batch of ASICs keeps most of this market. The designers of the coin often design ASICs in an attempt to stabilize the mining of the coin long term. and keep interest in that coin.
Non-upgradeable
When new ASIC comes out. old ASIC becomes obsolete. There is no way to upgrade an ASIC.
GPU | Graphics Processing Unit
Example Coins: Ethereum, Monero, Zcash
Pros:
General Purpose Computing Power
From mining to Al, GPU is very good at complex computations, no matter the type. It can mine any type of coin. as well as get converted to Al machine or something else if mining is no longer profitable.
Easily Sourced
Even though only AMD and NVIDIA design GPUs, many companies such as ASUS. EVGA. and Gigabyte manufacture and resell GPUs. This creates competition. and prevent a single entity from controlling the market.
Standard Hardware
Goes into a standard chasis and motherboard. Creates an inexpensive system. that is reliable. easy to support. and reusable.
High Resale Value
GPUs can always be resold for a much higher portion of the original value than ASICs.
Upgradable
Bios upgrades are always available, which can make drastic improvements in performance. In worst case scenario. you can replace each GPU one at a time.
From mining to Al, GPU is very good at complex computations, no matter the type. It can mine any type of coin. as well as get converted to Al machine or something else if mining is no longer profitable.
Easily Sourced
Even though only AMD and NVIDIA design GPUs, many companies such as ASUS. EVGA. and Gigabyte manufacture and resell GPUs. This creates competition. and prevent a single entity from controlling the market.
Standard Hardware
Goes into a standard chasis and motherboard. Creates an inexpensive system. that is reliable. easy to support. and reusable.
High Resale Value
GPUs can always be resold for a much higher portion of the original value than ASICs.
Upgradable
Bios upgrades are always available, which can make drastic improvements in performance. In worst case scenario. you can replace each GPU one at a time.
Cons:
Higher Power Draw
Not as Powerful as ASICs
Less Overall Efficiency Compared to ASICs
Requires Large Equipment
A pocket-sized ASIC can sometimes equate a 4U server.
Cannot mine certain coins
Cannot profitably mine coins like Bitcoin and LiteCoin, or any coin that has ASICs available.
Not as Powerful as ASICs
Less Overall Efficiency Compared to ASICs
Requires Large Equipment
A pocket-sized ASIC can sometimes equate a 4U server.
Cannot mine certain coins
Cannot profitably mine coins like Bitcoin and LiteCoin, or any coin that has ASICs available.
Which is better for me?
GPU mining has benefits to the network not discussed here, which is why coins like Monero are unlikely to go to ASIC. New blockchains like Ethereum can perform different types of calculations on the blockchain. Because of this, you are unlikely to ever see ASICs on Ethereum. There will always be a significant number of coins that are ASIC-resistant. The chances that one of those coins becomes profitable is higher than picking a singular coin and hoping that that one coin succeeds.
There is a situation where ASICs are beneficial. If you have a large equipment budget, access to very low cost electricity, and you are OK at sticking to one coin for the long run no matter what - ASICs are by far the best choice for you. However, if you want flexibility and freedom from a singular coin, GPUs are the way to go.
There is a situation where ASICs are beneficial. If you have a large equipment budget, access to very low cost electricity, and you are OK at sticking to one coin for the long run no matter what - ASICs are by far the best choice for you. However, if you want flexibility and freedom from a singular coin, GPUs are the way to go.
Resources
https://en.wikipedia.org/wiki/Application-specific_integrated_circuit
definition of a sic
https://en.bitcoin.it/wiki/ASIC
another definition of asic
https://ethereum.stackexchange.com/Questions/14/what-proof-of-work-function-does-ethereum-use
Description to Ethereums ASIC resistant PoW algorithm
https://github.com/ethereum/wiki/wiki/Mining
Ethereum mining details
ASIC vs GPU debate. This debate has been going on since about 2013. While the debate is usually focused on the future of the blockchain, definition of "distributed computing"(many small players, or few large players) and how to best avoid 51% attack, I will focus on long term profit from a miner's perspective.
definition of a sic
https://en.bitcoin.it/wiki/ASIC
another definition of asic
https://ethereum.stackexchange.com/Questions/14/what-proof-of-work-function-does-ethereum-use
Description to Ethereums ASIC resistant PoW algorithm
https://github.com/ethereum/wiki/wiki/Mining
Ethereum mining details
ASIC vs GPU debate. This debate has been going on since about 2013. While the debate is usually focused on the future of the blockchain, definition of "distributed computing"(many small players, or few large players) and how to best avoid 51% attack, I will focus on long term profit from a miner's perspective.