Why my GPUs beat your ASICs at crypto mining

There is a constant question for everyone doing cryptocurrency mining – what is the most profitable hardware to mine?  Here we explore that question and try to quantify why today (January 13, 2018) we believe GPU mining is the best for crypto mining – even better than ASICs.

Now we have to quantify “best” as this is very much a moving target.  By best in this case we aim to blend profitability, cost of entry, and risk mitigation in a market that is constantly changing.

A bit of background on some of the (silicon) chips

CPUs GPUs FPGAs and ASICs
CPUs GPUs FPGAs and ASICs, source Microsoft

There are a number of types of chips available.  The performance and other critical characteristics such as power consumption for the chips vary depending on how they’ve been designed.  Without going into too much detail we can compare them as follows:

  • CPUs – Incredibly flexible, and capable of executing a wide variety of singular tasks at a very high rate
  • GPUs – Not as flexible as a CPU and requires a bit more specialized programming to leverage, however modern GPUs contain thousands of cores which are capable of a very high degree of parallelism for repetitive tasks
  • FPGAs – Require specialized programming for each task, but are highly efficient (from a power/performance perspective) and can be flashed with new code as requirements change
  • ASICs – The most simple and efficient (again from a power/performance perspective), they’re also inexpensive to manufacture at scale.  The major disadvantage is that the program is (effectively) burned onto the silicon – it does one thing very well and only one thing.

So what is best for mining?

Initially, when we started crypto mining in earnest, given these characteristics we focused on ASICs.  Indeed if you want to mine the de-facto crypto standard, Bitcoin, there really is not a viable alternative.  That said, if we use the definition of “best” above we find that in the current market with altcoin (non-bitcoin crypto currencies) we can achieve the same level of profitability per cost by GPU mining.  Once more if we factor in the resale capacity of the market for GPUs, it quickly becomes a highly advantageous option.  If the crypto market fails I can resell a GPU whereas resale of ASIC hardware is problematic.

What is the best GPU?

I wrote a separate article on crypto mining with the NVIDIA GeForce 1080 Ti.  At the moment this is the best consumer-grade GPU on the market and as a result it’s in high demand.  If you’d like to get your hands on one of these cards here are links on Amazon to a few of the models that I have:

What do you think?  Think we missed a critical point or disagree?  Please comment, we love to hear your feedback!

Erik

Technology, science, building things and experiencing the world. What more could anyone ask for?

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