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BTC $44067.14 (-6.9%)
ETH $3081.41 (-8.1%)
USDT $1.00 (-0.0%)
BCH $551.78 (-10.%)
BSV $139.25 (-14.%)
LTC $160.84 (-9.5%)
BNB $374.19 (-8.5%)
ADA $2.17 (-7.6%)
DOGE $0.21 (-9.6%)

What is GPU Mining: Is GPU Mining Still Profitable?

What is GPU Mining Is GPU Mining Still Profitable

Introduction

Graphics processing technology has evolved to deliver unique benefits in the world of computing. The latest graphics processing units (GPUs) unlock new possibilities in gaming, content creation, machine learning, and more.

Clearly, GPUs have sparked an AI boom, become a key part of modern supercomputers, and continued to drive advances in gaming and pro graphics. While GPUs are now more than just bout PCs in which they started, they remain anchored in a much older idea called parallel computing, and that’s what makes GPUs so powerful

In this article, we aim to let the readers understand what is GPU mining? More so, we will check out what are GPUs used for, and the difference between CPU and GPU. Lastly, we’ll answer the question, is GPU mining still profitable? What is the impact of US tariffs on GPUs profitability?

What is GPU?

The graphics processing unit, or GPU, has become one of the most important types of computing technology, both for personal and business computing. Designed for parallel processing, the GPUs take care of a wide range of applications, including graphics and video rendering. Even though most people know them for their capabilities in gaming, GPUs are becoming more popular for use in creative production and artificial intelligence (AI).

graphics processing unit

Developers originally designed GPUs to accelerate the rendering of 3D graphics. Over time, they became more flexible and programmable, enhancing their capabilities. This allowed graphics programmers to create more interesting visual effects and realistic scenes with advanced lighting and shadowing techniques. Other developers also began to tap the power of GPUs to dramatically accelerate additional workloads in high-performance computing (HPC), deep learning, and more.

What Are GPUs Used For?

GPUs for Gaming

Video games have become more computationally intensive, with hyper-realistic graphics and vast, complicated in-game worlds. With advanced display technologies, such as 4K screens and high refresh rates, along with the rise of virtual reality gaming, demands on graphics processing are growing fast. GPUs are capable of rendering graphics in both 2D and 3D. With better graphics performance, users can play games at higher resolution, at faster frame rates, or both.

GPUs for Video Editing and Content Creation

For years, video editors, graphic designers, and other creative professionals have struggled with long rendering times that tied up computing resources and stifled creative flow. Now, the parallel processing offered by GPUs makes it faster and easier to render video and graphics in higher-definition formats.

When it comes to performance, Intel provides no-compromise solutions for both the CPU and GPU. With Intel® Iris® Xe graphics, gamers and content creators can now get even better performance and new capabilities. Optimized for 11th Gen Intel® Core™ processors and perfect for Ultra-thin and light laptops, Intel® Iris® Xe graphics come integrated with the processor. Select laptops also include Intel® Iris® Xe MAX, Intel’s first discrete graphics product in 20 years.

Intel® Iris® Xe MAX was designed to provide advanced graphics performance and media capabilities, as well as enjoy seamless, immersive gameplay anywhere in 1080p. All this, while on a sleek lightweight laptop. Additionally, by combining 11th Gen Intel® Core™ processors, Iris® Xe MAX discrete graphics, and Intel® Deep Link Technology, you can experience 1.4X AI1 performance and 2X better performance encoding single stream videos2 than with third-party discrete graphics.

GPU for Machine Learning

Some of the most exciting applications for GPU technology involve AI and machine learning. Because GPUs incorporate an extraordinary amount of computational capability, they can deliver incredible acceleration in workloads that take advantage of the highly parallel nature of GPUs, such as image recognition. Many of today’s deep learning technologies rely on GPUs working in conjunction with CPUs.

GPU Mining

According to VoskCoin, a crypto YouTuber with almost 400K subscribers, GPU Mining is indeed profitable.

Earning passive income mining cryptocurrency is the most fun I have ever had making money but a lot of people wonder if GPU mining is still profitable and if GPU mining is still worth it? The short answer is yes, absolutely, a lot of people have become rich just from mining and many of them simply used GPU mining rigs, and some even only ever mined one coin.

Is GPU Mining Still Profitable?

GPU mines are becoming more and more popular. That’s part of the reason why GPU prices are shooting up. Clearly, GPU mining is very much alive and profitable for now. However, there are a few parameters you must take into consideration here:

  • The difficulty of the coin you want to mine;
  • The market value of the coin;
  • the pool where you mine the coin and the reward system of the pool;
  • your hardware;
  • your power costs;
  • the miner you use to mine;
  • the drivers of your GPU.

These items will determine whether mining is profitable for you or not. There are a few things you cannot control like the difficulty, market value, and your power costs. Do a lot of research about the other items, especially about your GPUs. It starts with the question of whether you choose a GPU from NVIDIA or AMD. NVIDIA GPUs mine some coins better whilst AMD GPUs miner other coins much well.

You should also note that it’s not always a smart move to look at which coin is profitable now. Try to look into the future to determine which coin might have a better value in let’s say 6 months from now. If you start mining a coin that will have doubled its value is better than mining a coin that has high value now, due to the difficulty.

In other words: mine a coin that no one wants to mine due to low market value, but which will rise in the future.

Maybe momentarily in a bull market, certain projects may become profitable for a while but my feeling is that the crowd will rush in again and hash rates will rise, diluting any profit. The cat is out of the bag with cryptocurrency now.

Basically now in most countries, you are mining to be involved, not to make money. Traders commonly look at mining as a bull market indicator too. The health and desirability of crypto are hard to doubt when you look at the global hash rate.

We can consider it a 50–50 situation because the thing is:

GPU mining got a boost in 2018. Since then, many people have purchased GPUs. Because of this, very few GPUs are left all over the market now, to the point that gamers themselves are not able to find GPUs. But still, if you look at the people who invested before, they are doing so well. On the other hand, some people didn’t even get a chance, and now it seems too late.

US Tariffs Impact on GPU Mining

For Chinese companies, the tariffs from the U.S. present added pressure alongside the hardships they have with the Chinese government. In September 2017, Chinese authorities banned cryptocurrency exchanges. This year, it banned crypto mining activities as well, and in the process forced crypto business outside of the country, shifting the focus of crypto companies toward hardware manufacturing and mining.

Now, U.S. tariffs could make those operations unprofitable, not just in the US and China but in other parts of the world. All of this is on top of broader concerns about the future of the cryptocurrency industry as a whole, too; some analysts have suggested that the digital currency space more broadly has lost momentum, or even that it is dead.

Hence, for some Chinese crypto miners and mining-related companies, the playing field has recently become even more challenging to navigate. Certainly, if the Trump tariffs are eliminated at a later stage, this could strengthen the movement of Chinese mining operations into the U.S., although there are no indications that this will happen in the immediate future.

Market News

Back in June 2020, miners made it to the headlines. According to some reports, cryptocurrency miners in China were beginning to sell off GPUs for cheap. In fact, several huge Bitcoin miners have been leaving China to escape a state crackdown on all BTC mining activities.

According to reports, it looks like it will take several months to start operating again for these miners. This is because miners are currently running into limited data center capacity overseas and logistical challenges.

Recently, data centers from Texas to Siberia crawl to secure space and power/electricity for them. Hence, BitRiver, a data center in Siberia, is accommodating Bitcoin miner’s plans to build new facilities to meet the Chinese demands.

We can recall, China’s State Council recently announced a crackdown on Bitcoin trading and mining activities. In fact, China’s first Bitcoin exchange, BTCC, closed its business last week. As a result, Chinese miners are now shutting down and looking to move out of their country. More so, they are seeking tolerant authorities, low temperatures machines, and cheap electricity. Meaning, the electricity will ideally be from hydro plants or oil fields.

CPU vs GPU

CPUGPU
Central Processing UnitGraphics Processing Unit
Good for serial processingGood for parallel processing
Several coresMany cores
Can do a handful of operations at onceCan do thousands of operations at once
Low latencyHigh throughput

The main difference between CPU and GPU architecture is that a CPU is designed to handle a wide range of tasks quickly (as measured by CPU clock speed). However, they are limited in the concurrency of tasks that can be running. Note that, a GPU can quickly render high-resolution images and video concurrently.

As GPUs can perform parallel operations on multiple sets of data, they are also commonly used for non-graphical tasks such as machine learning and scientific computation. Designed with thousands of processor cores running simultaneously, GPUs enable massive parallelism where each core is focused on making efficient calculations.

FAQ

What does GPU stand for?

Graphics Processing Unit (GPU), a specialized processor originally designed to accelerate graphics rendering.

What is a GPU Mining Rig?

A GPU mining rig is a special computer put together for the sole purpose of mining cryptocurrencies using GPUs. As such, a GPU mining rig can look like a regular personal computer, have the same hardware components as a regular personal computer, and even run the same operating system as a regular personal computer.

Can you Game and Mine at the same time?

Yes. Absolutely. You can game and mine at the same time. Although it is not recommended because it can prematurely wear and tear your GPU.

Disclaimer: This material must not be used as the basis for making any investment decisions. This serves only as informative material about the crypto exchange. Trading digital assets involve risk and can result in the loss of investment capital. Always make sure to do in-depth research prior to engaging or investing in any cryptocurrencies.

Britney is a market analyst who covers stories about the cryptocurrency world. She holds a Business Administration Degree in Finance and aims to let the readers understand crypto from a beginner perspective.