Bitcoins are an internet currency. Bitcoins are used by people to make purchases as well as profits or as an investment for future purposes. Bitcoins are traded on exchanges and the overall bitcoin market is considered to be very volatile as prices can swing in any way. We should all understand most users do not mine bitcoins. Bitcoin mining is a really lucrative business. It is recommended you go for mining only if you do not care about making profits. Else, you should do the mining very efficiently in order to make a profit.
In the early days of bitcoin mining was possible via CPU only. As technology advanced, we saw the introduction of GPU bitcoin mining (Graphics cards). The advantage of GPU bitcoin mining was it allowed an astonishing 50x to 100x increase in mining power besides using less power per mega-hash compared to CPU bitcoins mining. This only benefited the end user immensely.
Any of the available modern GPUs’ can be used to mine bitcoins and make money. The AMD line of GPUs’ architecture has turned out to be far superior to the nVidia architecture for mining bitcoins.
The transition from CPU to GPU was smooth and saw the use of Field Programmable Gate Arrays (FPGA) as the primary mining hardware platform. While FPGAs’ do not provide a 50-100x increase in speed they are very efficient when it comes to saving power. As a result, your system maintenance and power consumption bills were kept under check. Besides, power efficiency is a key when it comes to calculating profitability. As there was efficiency in consuming power, the profitability definitely increased.
In the current age, GPU bitcoin mining is now moving towards ASIC (Application Specific Integrated Circuit). ASIC is a chip designed to do just a single thing. Unlike FPGAs’, ASICs’ cannot perform other tasks. In other words, an ASIC designated to mine bitcoins will only mine bitcoins. It will be unable to perform other tasks or it will be unable to multitask.
Unlike the previous generations, ASIC is considered the end of the line in terms of disruptive technology. That is there is no way beyond the ASIC. Initially, CPUs’ were replaced with GPUs and then came FPGAs and ASICs. Now there is nothing to replace ASICs now or in the immediate future. As expected, there will be a stepwise refinement of ASIC products aimed at increasing efficiency. However, this may not offer the 50-100x increase in hashing power or the 7 times reduction in power consumption as seen in the previous technology.
To conclude, the advent of GPU bitcoin mining was definitely a step in the right direction. GPU bitcoin mining enabled users to enjoy a 50x to 100x increase in mining power and that too by using less power. Besides, GPU ensured a user has more facilities at his or her disposal. GPU was definitely advancement over the previous CPU. An increase in speed that too with less power consumption was a must to ensure a good profitability, a must to make good profits over mining bitcoins.