Cryptocurrency Mining 102

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Mining-Bitcoinpk Blog

Cryptocurrency Mining rig demand is increasing day by day. Currently its very difficult to find mining hardware at a reasonable price.

So what is GPU mining to be exact?

Well its simply a computer running a mining software which instructs the graphical processing unit to process complex mathematical problems. This is in-turn rewarded in crypto. There are now coins that allow peer to peer trading of services, One example of such coin is PKT or Playkey. Its building a token asset that will allow low end laptops or personal computers to play latest games. Its a smart contract based on eth that will allow gamer to rent rigs or gaming pc to play such games. Similarly there is a crypto called gnt or golem that allows you to buy services for rendering of videos and will represent a token in between. So mining, and a digital local economy are based on new tokenism assets. These tokens or crypto assets are in early stages and being developed regularly.

The most demanded cards in this area are the nvidia 1060 and 1070, p104, p106, amd vega 56, 470, 570 and 580. People are now modifying these cards and over clocking them for better performance.  The amd series is in really high demand in subcontinent such as Pakistan, India due to low cost and low power consumption. While the graphic cards such as the vega and the p series are specially designed for mining are a bit more costly but offer better hash to power ratio (slightly better).

This is a huge SME growing in Pakistan, small investors are investing in the area for a potential big payout. A six GPU rig can generate about 170+ mhs on ether mining which can produce about 0.5eth per month while consuming roughly PKR 3000- 6000 depending on unit rate in the respected area in Pakistan. But that does not mean that it will continue to generate in this manner. They way cryptos are designed, they tend to become more and more difficult to mine and hence start producing a lot less.

The reason people are preferring to invest in this rather GPU than the ASIC miners. Not only does GPU use less power but you can resell them later on.

ASIC Mining:

The next evolution in mining came when ASIC or application-specific integrated circuits  were designed to mine bitcoin. This sort of hardware is available from very few selected companies.  

You can read more about ASIC or Bitcoin mining profitability, explained excellently in the following aricle :

https://coincentral.com/bitcoin-mining-profitability/

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