GPU Mining – A New Method Explained

Decentralization is the cornerstone of any cryptocurrency. Cryptocurrencies like Bitcoin and Ethereum are unique in the sense that there is no one organization verifying transactions. There is a whole network of miners which verify a transaction. GPU mining is essentially this act of verifying transactions in cryptocurrencies for rewards. People with computers may be able to mine any type of cryptocurrency. However, it is important to understand that without a very high-end PC you cannot mine substantial number of coins.

Why is GPU mining important?

In order to be able to mine a cryptocurrency you will need to have a graphics card having a memory or more than 2GB. You also need to know the steps by which to mine coins and a digital wallet depending on the cryptocurrency you are mining. When you have successfully chosen the software, mining pool and graphic card you can actually start to mine the cryptocurrency, whether Ethereum or Bitcoin. Details of mining strategies keep changing and you need to update yourself accordingly.

The main advantage of mining is obviously to earn profits. Just like different investments will have different rewards and risks and need investments, so also GPU mining is a specific kind of mining that demands low initial investments. Once you have it your computer can generate higher returns. However, the main drawback is that you are likely to reach a cap on mining investments since you will soon reach the limits of electricity that you can afford at home. Unless you invest in a spate property for carrying out dedicated mining, you will soon be out of luck. Besides, many people have to put a stop to mining because it entails having a huge computer at home that has many GPUs which will give out too much heat and noise. This is why GPU mining soon loses its charm.

Apart from earning profits, mining is beneficial because it is believed that the cryptocurrency that you generate deserves to be supported as a positive force. Besides the Ether, miners can mine Curecoin to give the world proteins or Primecoin to help the world to find prime numbers. Learning the technology has its advantages as many would say. In general, when you already have a powerful PC at home which you use for gaming or virtual reality, there is no harm in using it for mining at night.

GPU mining is profitable to a certain extent when it comes to mining cryptocurrencies. In the initial stages, people could mine Bitcoins using the CPU only but soon some others wrote programs enabling people to mine with GPUs. This increased the hash rate and people immediately switched to GPU mining. Soon afterwards the ASICs came about and then it was found to be more profitable to mine using these rather than the GPUs. Slowly many other cryptocurrencies emerged which chose various algorithms that needed a lot of memory. The fact that ETH switched to Proof of Stake from Proof of Work made it less profitable to mine ETH. So it is believed that GPU miners will also have to make a switch to mining other kinds of crypto coins. Luckily there are many other coins that can be mined using the GPUs. This shows that this type of mining will not lose its relevance in the following years. But the miners must upgrade their GPUs from time to time to stay competitive.

When it comes to mining there are multiple things one can do in order to increase profits. You can download more efficient drivers or over clock the GPU, experiment with different mining pools or even try to mine other coins. Ethereum is soon making the switch to Proof of Stake from the Proof of Work algorithm which is considered to be far more secure than POW and consumes less power. So, accordingly the GPU miners will also have to start mining other coins.

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