What to Consider Before Buying a GPU
When buying a GPU, one thing to keep in mind is that each model has its own hash rate, which may be higher or lower than that of others. Even if they have the same computing power or performance rate, the productivity of each GPU varies according to the cryptocurrency being mined.
Here are some things to put into consideration before choosing a particular GPU model:
- Hash Rate – The hash rate of a GPU is expressed in terms of its amount of hashes per unit second. This is the graphics card’s mining power generated to write or validate blocks on a blockchain network.
- Price – Price is also an important factor to consider before making a buying decision. At the least, you can estimate the value of a GPU by doing a price comparison of different models based on their key features.
- Electricity – Electricity is another major criterion to put into consideration in order to maximize the profitability of a graphics card. Indeed, many GPUs aren’t optimized for crypto mining, and they often consume too much electric power compared to their hash rate.
It must be noted that in choosing a graphics card, the main goal should be mining as many cryptocurrencies as possible with minimum electricity consumption. As a matter of fact, many miners have gone bankrupt for not taking into account the cost of electricity in mining.
- Random Access Memory (RAM) – Another factor to remember when buying a GPU is the value of RAM memory on each model. In fact, to mine some cryptocurrencies such as Cardano and Ethereum, for example, you’ll need not less than 3 GB of RAM memory. Other cryptos like Monero and Zcash can be mined with GPUs of lesser memory value.
Speaking about GPUs, NVidia cards remain smart choices because of their relatively low power consumption. On another hand, AMD cards are generally cheaper and also more efficient, but consume more electric power.
The ability to put these factors into careful consideration may make or mar your mining operation in the long run.
Which GPU Should I Purchase?
The crypto market is already flooded with more than 1,250 different cryptocurrencies. Needless to say that these digital currencies come with different consensus algorithms.
However, the most popular algorithms are SHA-256, DaggerHashimoto, Cryptonight, Equihash, etc. For instance, Bitcoin utilizes the SHA-256 protocol and it’s very difficult to mine, especially with the introduction of ASICs. But mining with other algorithms is relatively easier and more profitable with suitable equipment.
That said, those algorithms are more ideal for certain blockchain architectures and GPUs. Let’s examine one or two cases here.
Mining Bitcoin with GPU
There’s no gainsaying that Bitcoin remains the most valuable digital currency in the world.
Nevertheless, the best graphics cards aren’t good enough for mining Bitcoin. This is because the cryptocurrency depends on the SHA-256 protocol which consumes much electric power.
Moreover, the difficulty faced in mining Bitcoin often increases as there are more miners competing for the same rewards. Thus, its acceptability has led to more challenges, which leaves ASIC mining as the most viable option to mine new Bitcoins.
But this option is very expensive and may not be cost-effective due to rapid hardware deterioration. With this in mind, the best way to mine Bitcoins is to first mine alternative cryptos like Ethereum, and then exchange those currencies for Bitcoin.