What does GPU mean?
Some cryptocurrencies can be mined particularly efficiently with the processors of graphics cards.
How mining works
In order to generate new units of cryptocurrency, most of these currencies use different types of algorithms. These algorithms are becoming increasingly more complicated.
In the cryptographic network, the individual calculating machines are now competing to see who can solve the task first. Usually, the user of this device gets the profits from the newly mined block.
Alternatively, new coins are distributed to various users. Certainly, at the start of major cryptocurrencies such as Bitcoin, commercial processors were able to handle this work.
However, these tasks quickly became more complex and the mining process is nigh on impossible with a regular CPU. This is where GPUs come in.
Advantages and disadvantages of mining with a GPU
It didn’t take long for individuals to realize that certain algorithms can be solved with the help of GPUs. As a result, some people have set up entire banks of computers in their home, consisting solely of graphics cards.
The advantage of this is that tasks can be solved faster, increasing the chance of mining success. The drawback is that GPUs need to be adequately cooled to prevent overheating and damage.
In addition, GPUs are louder and consume considerably more power than normal processors do usually.
Alexander Weipprecht is the managing partner of Provimedia GmbH. As a trained IT specialist for application development, he has been advising leading companies on the following topics for more than 10 years: online marketing, SEO and software. Cryptocurrency is becoming increasingly important to businesses and investors. Through Coin Report and Krypto Magazin Germany, Alexander wants to give all people easy access to the subject matter.