Crypto Mining With ASIC Miner Or GPU: Understanding, Excess And Lacks

Bitcoin mining device. (Photo; Doc. Bitcoin Insider)

Mining cryptocurrencies is one of the most popular ways to get crypto assets. However, there are two types of hardware that are most commonly used to mine crypto, namely: Application-Specific Integrated Circuits (ASIC) and Graphics Processing Units (GPU).

Both have their own advantages and disadvantages. Therefore, understanding the comparisons and advantages of mining with ASIC and GPU is very important for anyone who wants to enter the world of crypto mining.

Usually choosing a device to mine crypto often confuses beginners who want to get into this crypto asset mining activity. One of the questions that often arise is, "Which is better, buying an ASIC like Antminer S19 Pro or assembling a GPU rig from an NVIDIA RTX 3080 graphics card?"

The answer to this question is not as simple as imagined, because each option has its own advantages and disadvantages. Before that, let's first understand what ASIC Mining and GPU Mining are.

What's ASIC Mining?

Application-Specific Integrated Circuits (ASIC) is a dedicated device designed to mine certain cryptocurrencies. For example, Bitcoin and Litecoin are often mined using ASIC because these devices are very efficient in processing single algorithms. With a qualified performance, ASIC is able to complete complicated mathematical algorithms much faster than hardware in general.

In terms of price, the ASIC tends to be more expensive in terms of initial costs, but offers faster returns. For example, the Antminer S19 Pro, one of the most popular ASIC models, is priced at around US$3,000 to US$4,000 (Rp46.5 million to Rp62 million). Despite the high initial price, this device offers a large hash rate, making it more profitable in the long term.

What Is A Mining GPU?

On the other hand, GPUs are more versatile. Although originally designed for gaming and graphic rendering, GPUs are now used to mine various cryptocurrencies such as Ethereum, Ravencoin, and Monero. Mining crypto with GPUs is more flexible as it allows miners to switch from one crypto asset to another, depending on market conditions.

Meanwhile, in terms of price, GPUs are lower than ASIC, but to achieve a competitive hash rate, you need several GPU units. A standard GPU mining rig usually consists of 6 or more graphics cards, with costs ranging from 500 US dollars to 1,500 US dollars (Rp7.75 million to Rp23.25 million each).

Meanwhile, the price of NVIDIA RTX 3080 itself is priced at Rp12,400,000 based on information from the official NVIDIA website. In addition, assembling GPU rigs is more complicated and requires special expertise.

Power Consumption

The ASIC is much more energy efficient than the GPU because it is specially designed for one task. For example, the Antminer S19 Pro consumes about 3,250 watts, but offers a high hash rate, making it more operational cost-effective.

In contrast, GPU rigs are more wasteful. A rig with 6 GPUs can consume more than 1,200 watts, depending on the type of graphics card used. This means higher electricity bills, which can ultimately reduce profits, especially in areas at high cost of electricity.

Hash Rate And Mining Speed

Hash rate measures how many calculations a device can do per second. ASIC offers a much higher hash rate than GPU. For example, Antminer S19 Pro has a hash rate of 110 TH/s (terahashings per second) to mine Bitcoin. In contrast, Nvidia RTX 3080 is only able to reach around 100 MH/s (magahashes per second) to mine Ethereum.

Although the ASIC offers a higher speed, the GPU allows miners to diversify their cryptocurrency portfolios. The ability to switch between algorithms provides greater flexibility in the face of market fluctuations.

Profits And Risks Of Profiting ASIC Mining

The ASIC is usually more profitable for certain crypto assets such as Bitcoin and Litecoin. With a high hash rate and energy efficiency, this device generates more daily benefits than GPUs.

However, the biggest risk of ASIC is its very specific nature. If the algorithm is changed or the cryptocurrency mined loses value, the ASIC cannot be used for other tasks, meaning expensive investments can become useless.

Profits And Risks Using Mining GPUs

On the other hand, GPU offers greater flexibility. Miners can switch between cryptocurrencies based on market trends. However, market volatility and algorithmic changes can make profits from fluctuating GPU mining. For example, Ethereum's transition to Proof-of-Stake (PoS) some time later could have a significant impact on GPU demand for crypto mining.

Conclusion

Choosing mining devices between ASIC and GPU relies heavily on your preferences, especially on your risks, flexibility, and budget. ASIC is more efficient and profitable for certain cryptocurrencies, but it is at high risk when market conditions change. On the other hand, GPU is more flexible and its GPU can be reassembled for various other tasks if mining crypto is considered no longer profitable.