If you are finding your interest growing in cryptocurrency mining then you might have come across CPU and GPU mining. Before you make a decision and begin your journey, you would need to enhance your technical knowledge to make it happen. Let’s have a look at all that you must know.
What is Cryptocurrency Mining?
It is a process through which complex mathematical puzzles are solved, and contributed to the blockchain network. This way users receive a reward for their participation and receive an amount of the coin they mined.
In order to mine cryptocurrency, one would need mining equipment and a program that allows them to compete with other miners in the market. This task requires enormous computing power, electricity, and heavy-duty hardware which is up for the challenge.
There are two kinds of investors; one who mines with one machine and the other who sets up farms to mine coins on a larger scale. Individual miners can become a part of mining pools and can successfully compete with mining farms. This helps them become more cost-effective than mining solo.
CPU mining
In the early days, Bitcoin was only mined by CPUs. They could generate 100s of Bitcoins, however, that is not possible anymore.
Most of the coins that were popular to be mined using CPUs, do not give as much profitability as they did before. The reason for this is network difficulty and ASIC miners sweeping into the market. These factors overshadowed CPU mining.
No hope for CPU mining?
Certain cryptocurrencies are CPU-friendly. Using lower-end devices will not be profitable when it comes to mining. There are many profitable CPU mineable coins and CPU-only algorithms. You should expect it to generate ROI after at least 12 months of mining.
CPU Altcoins
To mine altcoins, usually, ASIC machines are needed. However, there are specific altcoins that are possible to mine with CPU.
Monero (XMR)
Monero is the only popular coin with the most CPU hash rate. It uses RandomX hashing algorithm which facilitates CPU mining and is completely ASIC-resistant.
Verus Coin (VRSC)
Verus uses a combination of Proof of Work and Proof of Stake as its consensus mechanism. Verus is a public blockchain and can be mined through CPU mining.
Nimiq (NIM)
Nimiq is designed for the browser and can be mined with your CPU. It also poses a possibility of GPU mining.
CPU friendly algorithms
Some of these algorithms are:
- RandomX
- Argon 2d
- VerusHash 2.0
Amongst the ones mentioned above, RandomX is the most popular. Even though it welcomes GPU miners, it, all the same, favours CPU miners as well. Most RandomX coins can generate a decent profit through CPU mining.
GPU Mining
Graphic processing units are most commonly used to mine cryptocurrency. Their popularity surpasses the most powerful ASIC miners. You can mine hundreds of cryptocurrencies using proof of work algorithms with GPUs. They are the go-to device for new miners entering the market.
GPUs comprise electronic circuits which are more powerful than their immediate counterpart, the CPU. They are developed to enhance image creation by speeding the computer memory. However, they are also utilized to mine cryptocurrency because of their efficiency.
Let’s have a look at GPU-friendly cryptocurrencies.
Vertcoin
Vertcoin is made to be ASIC-resistant and comes with the Verthash algorithm. It generated a block approximately every three minutes. The rewards are released in Vertcoins.
Monero
Monero is one of the easiest cryptocurrencies to mine with GPU and also favours CPU mining. There are multiple pools you can connector do profit-switching when mining Monero.
Ravencoin
Ravencoin is one of the most profitable coins to mine. It is used in platforms that cater to virtual goods, gold, shares, and other assets.
Ethereum Classic (ETC)
Ethereum Classic used EtcHash or Thanos upgrade which is just a slight alteration of the Ethash algorithm. Jasminer X4 is the ideal mining machine according to F2pool.
Bitcoin Gold
This is a spin of Bitcoin and utilizes the Equihash or Zcash algorithm. It works well with multiple GPUs.
DogeCoin
Dogecoin blockchain rewards 10,000 DOGE per block that you mine. Over the years, it has gained a significant rise and popularity amongst miners which makes it a target for GPU miners.
ZCash
ZCash operates on the Equihash algorithm which is a slight alteration of the Proof of Work algorithm. It is suited more for GPUs rather than ASIC.
In Conclusion
CPUs, even to this day, can give you profits through mining. You will have to invest in a high-end computer or laptop and do basic research on the coin you wish to mine. On the other hand, GPU mining is more efficient and profitable. It also offers you a variety of options when it comes to cryptocurrency. You must bear in mind which options for coins your graphic card offers you.
In the end, you decide which side you’re more prone towards keeping in mind your investment of money, time, and resources. If that’s done, you can dive right into the mining world.