Cryptocurrency mining with older gpu
The combination of semiconductor shortages and pandemic-boosted gaming pushed prices up, but it was cryptocurrency that made graphics cards worth their weight in gold. Prices are finally starting to drop a bit, and you can buy used cards on the cheap in Asia. But should you get these former mining cards? The price of GPUs started trending upward in early as the value of cryptocurrencies exploded. China started cracking down on crypto mining earlier this year, forcing many of these operations to close down. These used cards can get much cheaper than new ones, and it can be hard to tell which is which.
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Cryptocurrency mining with older gpu
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- Nvidia is nerfing its RTX 3060 GPU to stop crypto miners from buying them all
- Nvidia’s Anti-Cryptomining GPU Chip May Not Discourage Attacks
- 4 Best Mining Software Programs to use for GPU mining
- Crypto Mining Farm Spotted Using Nvidia RTX 30 Gaming Laptops: Report
- Nvidia limits crypto-mining on new graphics card
- Best GPU for Ethereum Mining
- The Best Graphics Cards for Crypto-Mining in Early 2021!
- GPU Usage in Cryptocurrency Mining
- Is GPU mining still worth it?
- Top 10 Best Cryptocurrencies to Mine Using GPUs in 2021
Nvidia is nerfing its RTX 3060 GPU to stop crypto miners from buying them all
Updated August, — Several years have passed since this article was originally written. Very little in terms of content has changed, as the original points still stand strong. Primarily, out of date charts and figures were updated to reflect current data.
In almost every interaction I have with a new client, ASICs are inevitably one of the first mining rig hardware options discussed. Understandably so, as the value proposition is so straightforward. ASICS are purpose-built to do one thing and one thing only: mine a specific crypto, and mine it fast.
Nothing else can compete with an ASIC on that front. Whereas GPUs are general-purpose processors that can calculate anything. At first glance, ASICs have a lot going for them. More powerful, more efficient, more stable, easy to use, and cheap. Conversation over, right? ASICs — Hands down more powerful — in terms of hash rate.
But are you mining hashes, or are you mining crypto? This is an incredibly important distinction. An ASIC is not a printing press for crypto, where the speed of the machine directly determines how much crypto it can mint.
The amount of new currency generated with each block is a fixed amount. Your share of that reward is directly proportional not to your hash rate, but to your fraction of the total network hashrate.
The power of the ASICs themselves are completely irrelevant. New ASIC-resistant algorithms and coins are coming out all the time.
There only are a handful of companies profiting from ASIC mining. Whereas there are literally thousands of companies big and small profiting from or completely dependent on GPU mining.
And it runs the gamut from gigantic publicly-owned multinational corporations like Nvidia and AMD: raking in millions of dollars on GPU sales, down to the everyday gamer with a few GPUs.
The huge number of stakeholders in GPU mining will not just throw up their hands and cede the entire cryptocurrency mining market to Bitmain without a fight.
Again, are you mining hash, or are you mining crypto? Many ASICs draw about watts. And since everyone else is buying the same ASICs that you are, everyone ends up in exactly the same place — burning the same watts for the same relative slice of the profits. The only real winner in this arms race is the company building the ASICs. In , the numbers have gotten much bigger, but the point still stands.
For most small-to-medium-size miners, the first bottlenecks you inevitably bump up against are:. With GPUs, you will simply be able to pack more profit in before you hit that wall. But let us never forget the 1 Cardinal Rule of Mining — profitability is always inversely proportional to how easy it is to mine something. Mining is a competition. What happens? Even so, the 1 Cardinal Rule still stands. Because when you take the easy route, everyone is building the same rigs you are, buying the same GPUs you are, and mining the same Ethereum and Ravencoin that you are.
Optimize in ways that no one else is talking about. Cardinal Rule 1 strikes again. An ASIC is a one trick pony — it can only mine a specific coin. Basically, an ASIC is solely a bitcoin mining machine. Whereas with GPUs, a significant amount of them come from gaming rigs that are mining in their off time or casual miners with a rig or two.
When profitability gets low, gamers stop mining and casual miners sell their GPUs to gamers. Which means when the going gets tough, things get easier for the GPU miners that stick with it, because a lot of the competition simply goes away. Things get even worse when you look at the effect this has on the secondary market.
If income no longer exceeds the cost in electricity, your ASIC is worthless to you, at least. Resale value rapidly approaches zero as the ASIC approaches unprofitability. For people now in your situation, at least. But it gets even worse! A subtle factor in this equation is that everyone pays a different price for electricity. They have the pick of the litter so you will get pennies on the dollar. But something is better than nothing. So the vast majority will still resell their ASICs to someone with cheaper electricity instead of throwing them in the garbage or leaving them on the shelf, which means those ASICs effectively never get turned off, they just get moved around.
The rate of growth barely even slows down when the market crashes. Short of a natural disaster that wipes out tons of miners at once, hashrate never goes down. Note: In May , China banned mining. So these black swan events do happen from time to time. This equipment is rapidly being relocated elsewhere, as demonstrated by the even more rapid rise of hashrate after the drop. So this is just a short term pause that will have little net effect on the inexorable rise of hashrate.
The only way your profitability ever rises above where it was on day 1 is if the market price of bitcoin increases — but then you have to ask yourself why you bought an ASIC and not just bitcoin itself. But more importantly, how much did your hardware depreciate in value over that year?
Because that is the true measure of how much the hardware cost to own — and your ASIC is going to be worth significantly less if worth anything at all, and the GPU and all of the associated parts in the rig will be worth at least half or more of what you paid for them. Overall, GPUs are a little more expensive up front but cost less to own over time. With crypto being such a volatile market, we can hope for the best, but still need to prepare for the worst. What happens to GPU mining when the market crashes to the point where mining is barely profitable?
It slows down. From Mid-September to November, difficulty was flat. As the market bubbled over in Dec-Jan, there was a huge influx of GPUs as profitability was through the roof.
As the market continued to slide down through March, it pretty much flatlined again. In May we saw a momentary recovery, and a corresponding bump in growth, but nothing dramatic. December sure was a great month, but the May bump is barely perceptible. Profitability went from a miserable 0. Now look at Ethereum. Specifically, look at April to May.
Profitability more than doubled in the same time period that Bitcoin barely edged upwards. This was because at this point, so many had given up on GPU mining, leaving those who stuck with it to reap all of the rewards.
Whereas with ASICs, profitability is down to roughly half of what it was in April, with no end to the decline in sight. Note: I have left the original charts from intact, as the latest drop in May was unlike the early crash in that GPUs and ASICs still remain extremely profitable right after the crash, especially due to the China ban. They are not flexible, period. Sure, there are ASICs that can mine more than one algorithm, or more than one coin, but at the end of the day, all they will ever be able to do is the only thing they were specifically made to do.
And its why GPUs will always be the better choice for small-to-medium-size miners. You run your GPUs, and you get Bitcoin in return. Let that one sink in. The bare minimum an ASIC, a bitcoin mining device, should be able to do is mine Bitcoin better than anything else, and when it comes down to it, it gets beaten at its own game.
GPUs might as well just drop the mic and walk away. This flexibility to mine any altcoin and trade it for any other coin protects you now and in the future.
You mine ERGO. You rent out your hardware for rendering, for AI, for data analysis, and for a whole host of other things that the world will come up with to put those GPUs to use.
And at the end of the day, when your GPU is no longer useful to mine, or if you decide you want to get out of mining altogether — this flexibility is still your best friend.
And there are literally hundreds of millions of gamers out there. They outnumber miners by a ridiculous proportion, so the market can absorb tons of them without devaluing them to worthlessness.
ASICs — As a purpose designed machine, they tend to be well built, but decidedly no-frills. Forget about credit cards or PayPal or most other typical ways of paying over the internet.
Even worse, the manufacturer only barely stands behind their product — warranties are typically days. And enjoy dealing with international shipments if you ever need service. Worst of all, if you were planning on putting the ASIC anywhere within earshot of a human or arms-reach of a child, let me stop you right there.
These things are hot, loud and dangerous. The first time you hear one you will stand in awe of how such a little machine could possibly be so loud. And the fans on these things will cut off a finger without even slowing down.
Anyone with a toddler knows they have an irresistible urge to touch everything, and an ASIC will be the last thing those little hands ever touch. But standing in a well-ventilated room full of GPUs?
Nvidia’s Anti-Cryptomining GPU Chip May Not Discourage Attacks
And the pricing situation for new GPUs only worsens when you factor in crypto miners and their hunger for every new piece of hardware. So, used GPUs can be quite enticing, as they cost significantly less than new ones. GPUs get hot when pushed hard. Therefore, manufacturers equip GPUs with cooling solutions. In serious cases, you can end up with a faulty piece or something on the verge of complete failure. Furthermore, miners often mod their GPUs for mining. For instance, they might have overclocked the card or flashed a new BIOS.
4 Best Mining Software Programs to use for GPU mining
Crypto Mining Farm Spotted Using Nvidia RTX 30 Gaming Laptops: Report
The current dag size of ethereum is 4. CPU Assuming you're going to be using GPU power for your mining, the central processing unit doesn't need to be top of the range. Consumes less power and hashes almost double than that of RX The most profitable mining algorithm and coin are taken into account for each graphics card.
Nvidia limits crypto-mining on new graphics card
There are so many graphics cards available on the market that you can easily get lost. This article will help you choose the right GPU for mining Ethereum and other cryptocurrencies. Compared to last year, considering the shortage of video cards and the growth of the cryptocurrency rate, prices have significantly increased. But the profit from mining remains high and largely depends on the suitable device. You should consider a few things prior to the future acquisition. This step will help turn a video card into an effective cryptocurrency mining tool.
Best GPU for Ethereum Mining
Before , there was no such thing as cryptocurrency. As technology advanced to keep up with the rampant demand, cryptocurrency mining became a reality for many on their home computers. Over the years, the mining process and its efficiency have improved with the use of better hardware. Graphics Processing Units GPU have been used in the mining process for years, simply because they are more efficient than their immediate counterparts. However, its limited processing speed and high power consumption led to limited output, rendering the CPU-based mining process inefficient. A standard GPU, like a Radeon HD , clocked processing speeds of executing 3, bit instructions per clock, which was times more than the speed of a CPU that executed only 4 bit instructions per clock. It is this property of the GPU that makes them suitable and better for cryptocurrency mining, as the mining process requires higher efficiency in performing similar kinds of repetitive computations. The mining device continuously tries to decode the different hashes repeatedly with only one digit changing in each attempt.
The Best Graphics Cards for Crypto-Mining in Early 2021!
The graphics cards, and general gaming tech, deficit is continuing to be something of a blight on the industry and the customers who are struggling to get hold of new hardware products, such as an AMD or Nvidia graphics card, are still feeling the pinch. Crypto is being blamed for much of the shortages, and while some GPUs like the RTX are bad for cryptomining , it's still held responsible for stock remaining at an all-time low. However, it looks as though prices are coming down as crypto experiences lows itself.
GPU Usage in Cryptocurrency MiningRELATED VIDEO: Four year old GPU makes $10.00 a day! Mining $2,100.00 a Month!
One of the critical points during this period of high demand for graphics cards is that a portion of them are being purchased by professional users looking to mine cryptocurrencies. These professional miners buy graphics card by the pallet load, sometimes bypassing retailers and going direct to distributors, as they can guarantee a complete shipment sale in one go. The knock on effect is fewer cards available for gamers looking to build new systems, leading to empty shelves and causing prices to spike for the handful of cards that ever make it to retailers. In order to at least offer a fig leaf to gamers, in the past certain graphics board partners started producing mining-only graphics cards. These had no graphical outputs, making them almost impossible for gaming use cases, but it filtered off some of the mining market into buying those rather than taking stock away from shelves for gamers.
Is GPU mining still worth it?
Where the two markets intersect, you'll find his wheelhouse. He has been an official Fool since but a jester all his life. Contains six flavors not found in nature. Believes in coyotes and time as an abstract. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Graphics card prices have skyrocketed in recent months, driven partly by high demand from cryptocurrency miners amid rising currency prices. On top of that, the third-party manufacturers that turn NVIDIA's designs into physical products are running their manufacturing lines at full speed but still have to leave many orders on the table.
Top 10 Best Cryptocurrencies to Mine Using GPUs in 2021
February 26, That's why cryptomining can daunt newcomers—rumors about hardware degradation have made them fearful of killing their darlings. Lucky for them, mining doesn't degrade your GPU any more than a lifetime of l33t gaming.