The crypto craze has dominated recent headlines, making Bitcoin mining a popular topic of conversation. But how can you mine cryptocurrency profitably in the long term without sinking your money into equipment that becomes obsolete a few months later? This guide will teach you the difference between GPU and ASIC miners, how to decide which of the two is right for you, and why it is worth investing in high quality hardware.
GPUs vs. ASICs
For mining cryptocurrency, there are two types of hardware that can be used: Graphics Processing Units (GPUs) or Application-Specific Integrated Circuits (ASICs). A GPU chip is what you would find in a graphics card on a high performance computer. Companies like Nvidia typically make two versions of the same GPU — one for gaming and one for mining. On top of the GPU chip are chipsets like RAM, which are becoming increasingly smaller every year.
ASIC miners, on the other hand, are built for a specific purpose, using the exact same amount of RAM as the video card. Each ASIC is designed for a specific mining algorithm with specific parameters. For example, to mine Bitcoin, you would buy a Bitcoin-specific ASIC.
Unlike ASICs, GPUs can be used to mine many different alt-coins like Monero, Zcash, or Bitcoin Gold. Many of these altcoins are growing in market cap every year and have good speculative value. GPU miners are expensive to buy and operate, but if they are serviced properly, they hold their value and typically result in greater and more stable monthly earnings.
ASICs are somewhat cheaper and faster than GPUs and tend to be more energy-efficient. And if you get it before anyone else does you will make a killing. But the problem with ASICS is, companies like Bitmain or Bitfury will build the ASIC, mine for a year, then release them to the public when they have little profitability left. The more people start to buy the machine, the less profitable it gets, because the mining difficulty for that algorithm increases.
As a general rule, if the numbers are looking too good, it is probably too late. In the long run for ASIC mining, the miner with the lowest costs stays in. And if a cryptocurrency updates its algorithm or parameters, like Bitcoin Gold did earlier this year, the ASIC can no longer mine that coin and becomes obsolete. ASICs are great when they work, but they can be neutralized very quickly and do not have the same store of value as GPUs.
Buying High Quality Hardware
Over the years, we have learned that good quality hardware not only pays off in the long run, but it protects against a lot of headaches. A lot of cheap hardware is available, but you get what you pay for — cheap hardware means cheap wiring and soldering which can result in the equipment breaking down quickly. That’s why RekDeck only buys name brand hardware that comes with a reliable warranty in our cryptocurrency mining facility in Princeton, NJ.
We have found that good quality equipment will usually outlive its expected lifespan as long as it’s kept in the right environment, even lasting up to ten years. As long as you buy the latest chipsets, you should not have to worry about them becoming obsolete. In many cases, the equipment can outlive the cryptocurrencies it mines, which could switch to proof-of-stake instead of mining or even fall victim to an unfortunate accident. And with GPUs, you can mine a wide variety of different coins and alt coins.
The Bottom Line
When you buy cryptocurrency mining equipment from RekDeck, you can rest assured that you are getting high quality equipment that will be taken care of. Through our own mining operations, we have learned how to properly service mining equipment to ensure that it lasts and operates profitably. With RekDeck’s superior hosting, cooling, and security processes at our specially-designed data centre, your equipment will be in prime position to generate maximum returns. To get the most out of your cryptocurrency mining, contact RekDeck today.
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