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GPU Usage in Cryptocurrency Mining | How It Works

GPU Usage in Cryptocurrency Mining | How It Works

Bitcoin was first mined in 2009. As time unfolds, cryptocurrency is becoming increasingly popular. Now, crypto mining has become a very hot topic in the crypto community today. 

Crypto mining entails using computers to solve complex cryptographic equations to receive cryptocurrencies as a reward.

It is essentially the process by which new cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) are created.

The type of mining is now determined by the computing resource utilized to solve these difficult cryptographic equations.

Mining has become increasingly demanding in terms of computing power. Mining has evolved from a central processing unit (CPU) mining to application-specific integrated circuit (ASIC) mining.


Today, a gaming computer’s graphics processor can be used to mine cryptocurrencies and tackle difficult math problems. This article has been put together to better explain what is GPU usage in Cryptocurrency mining and how it works.

Make sure you read this article through to the conclusion so you have all the knowledge you require regarding how GPUs can be employed in the blockchain industry.

You can also read: When Should I Invest in Bitcoin?

Table of Contents

What Is GPU Cryptocurrency Mining?

GPU mining is a method of using a gaming computer’s graphics processing unit to perform complex math problems to validate digital transactions on a blockchain. Digital tokens are constructed on a blockchain architecture that Allows proof-of-work (PoW) mining, which is how bitcoin is mined.

How Does GPU Cryptocurrency Mining Work?

Since the focus is income, one of the most difficult issues for new miners is deciding which cryptocurrency to mine with GPUs. 

Before crypto is mined with GPUs, the project must first be designed on a blockchain architecture that enables proof-of-work (PoW). Furthermore, other factors, including block rewards, influence how many rewards one can earn from GPU.

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The amount of cryptocurrency provided to a miner/pool of miners for completing a block of cryptographic equations on a blockchain is referred to as the block reward.

For instance, mining one block at the time of the 2009 launch of Bitcoin would net you 50 BTC. The block reward, however, was cut in half to 25 BTC in 2012. This was reduced by another 50% to 12.5 BTC by 2016. The payout was finally reduced by a further 50% to 6.25 BTC in May 2020.

The best cryptocurrencies to mine are those that offer rewards sufficient to offset the cost of the mining equipment and the electricity required. Computers typically solve tough math problems using SHA-256 hash functions. In mining, a computer converts the SHA-256, an encrypted mathematical technique, into an output.

You can also read: How to Make Cryptocurrency a Part of Your Portfolio?

How is GPU Used in Cryptocurrency Mining?

As we previously said, central processing units were initially used for bitcoin mining. The CPU-based mining approach was ineffective due to its slow processing speed and high power consumption, which reduced output.

Then came GPU-based mining, which had many advantages over using CPUs. An average GPU, such as the Radeon HD 5970, could process 3,200 32-bit instructions per clock, which was 800 times faster than a CPU.

Additionally, GPU makes them quick, appropriate, and superior for bitcoin mining because the process requires increased efficiency in carrying out comparable types of repetitive computations.

The mining device continuously tries to decode the different hashes repeatedly with only one digit changing in each attempt. Also, GPUs have a significant number of Arithmetic Logic Units (ALU), which are used to carry out mathematical operations.

ALUs give the GPU the ability to conduct more calculations, which improves the output for the crypto-mining process.

What is the Most Popular Cryptocurrency Mining GPU?

There are various types of graphics cards available on the market, but those that are utilized for cryptocurrency mining are those that are specifically made for gaming rather than for video rendering.

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When it comes to electricity usage, the NVIDIA GeForce GTX 1070 is one of the most popular mining rigs; however, there are different versions available; you can always conduct your research to see which will work best for you.

While it used to be viable to mine Bitcoin and other cryptocurrencies on your laptop at home, this is no longer a possibility for most cryptos due to rising mining demand and the halving of the Bitcoin reward.

Most mining operations, including the usage of graphics cards and specialized mining rigs, are now carried out in shared pools, in which users pool their computer resources to produce results more quickly. After a block of the currency has been mined, miners are rewarded.

Depending on how much processing power each participant contributes to the shared pool, everyone receives a portion of the earnings. In this fashion, each computer represents a mine worker getting paid for looking for the block reward.

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GPU Mining Algorithms

Just as there are various cryptocurrencies built on different blockchains, there are different types of cryptocurrency mining algorithms available. The hash (the product of mining) differs on the different types of blockchain.

A hashing algorithm is a cryptographic hash function that maps data of any random size to a hash of a fixed size. These mathematical functions condense data to a fixed size. Because they are smaller, it is more convenient for a computer to compute hashes and solve the problems in the files or data string.

The hashing algorithms that support GPU mining are as follows:

  • SHA-256 Algorithm
  • Scrypt Algorithm
  • X11 Algorithm
  • Ethash Algorithm

FAQs About GPU Usage in Cryptocurrency Mining

What Is Bitcoin Mining?

Bitcoin mining is the technique through which new bitcoins are created. It is an essential part of the construction and maintenance of the blockchain ledger and is also how the network confirms new transactions. Mining works to solve incredibly complicated computational mathematical problems. 

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How much GPU do you need to mine crypto?

Generally, there is no minimum or maximum number of GPUs that may be used during mining, and you can even start with just one. However, if you are serious about mining, it’s advised that you use a system with 6 GPUs.

How long does a mining GPU last?

Mining does not affect the lifespan of a GPU or CPU. As a result, they are designed to run indefinitely 24/7.

How many GPUs does it take to mine 1 Ethereum?

To mine 1 Ethereum, you would need more than 50 GPUs. This is because Ethereum necessitates a setup with a hash rate of 15,500 mega hash per second.

How long does it take to mine 1 bitcoin?

With ideal hardware and software, it’ll take around 10 minutes to mine just one Bitcoin.  Such software and hardware that aid in fast mining isn’t always affordable. More commonly, most users can mine Bitcoin in 30 days.

What is the Best GPU for Mining?

The following are our best picks for GPU for mining:
ZOTAC Gaming GeForce RTX 3090
MSI Gaming GeForce RTX 3090
The EVGA GeForce GTX 1660
ASUS ROG Strix AMD Radeon RX 5700XT


Following the rise of Bitcoin, many investors now place a great deal of importance on the topic of cryptocurrency mining. Mining has progressed from CPU mining to application-specific integrated circuit (ASIC) mining, now with the graphics processing unit, one can solve complex arithmetic problems and mine cryptocurrencies. 

Meanwhile, before you decide on which cryptocurrency to mine using GPU, you must ensure that the project is built on a blockchain architecture that supports proof-of-work (PoW). 

Also, keep in mind that the best cryptocurrencies to mine are ones that offer returns large enough to offset the cost of the mining equipment and the electricity required. 

Therefore, make sure to research the various cryptocurrencies before choosing one to mine. We hope this post has helped you better understand GPU usage in cryptocurrency mining.

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