Do you own a gaming PC with GPU mining?
Well, congratulation! Because you can use it to make money at home.
Nowadays, most people invest in GPU to mine cryptocurrency. There are many different ways by which people can mine cryptocurrencies, and out of all the ways, the cheapest and easiest one is GPU mining.
However, you need to check if it is still profitable. Factors like high GPU price, heavy electric bills, and the introduction of EIP-1559 has affected the profitability of Graphics Card mining.
What is GPU Mining?
GPU stands for Graphics Processing Unit. It is also known as Graphics Card or Video Card. It is a specially designed processor used in computers. This processor improves the graphics rendering of the device.
Most of the gaming PCs have GPU for excellent graphics. It is more advance than a CPU as it can complete multiple tasks in a short span of time.
Because of the speed and power, it can also be used for mining cryptocurrencies.
Cryptocurrencies work on blockchain technology. In order to complete and verify crypto transactions, miners are required.
Miners are people who use a computer to solve cryptographic equations and mine cryptocurrencies. In order to solve the problems, they receive rewards.
There are different type of hardware you can use for mining crypto. You can either use ASIC (Application-Specific Integrated Circuit), CPU (Central Procession Unit) or GPU (Graphics Processing Unit).
It means, if you have a Graphics Card on your PC, you can use it to mine cryptocurrencies and receive rewards in return.
So, in short, GPU mining means using a GPU to solve complex cryptographic problems and earning rewards in return. When miners solve the problems, it helps them to verify the crypto transactions on the blockchain network.
This is how the entire blockchain network performs. Miners play a crucial role in cryptocurrency transactions. If you have a GPU, you can easily become a miner and make money from it.
During the initial days of cryptocurrencies, mining was quite profitable. However, as it became popular, the rewards kept on decreasing.
Is GPU Mining Profitable in 2021?
Over the period of time, the profitable of GPU mining has decreased. However, it is still profitable if you use the right type of hardware and mine the right type of coin.
The profitable of GPU mining depends on various factors. You need to consider all these factors and compare the cost with the actual profit to determine the profitability.
- Hardware Cost: The first thing you need to consider is the hardware cost. In order to mine cryptocurrencies with GPU, you need a solid PC setup. So, you need to invest in hardware. It will include a monitor, keyboard, CPU, GPU, mouse, fans, Wi-Fi router, etc. You need to calculate the cost of all these items.
- Type of GPU: The profitability also depends on the type of GPU you are using. When it comes to mining, you can only use a graphics card that is specially developed for gaming with more than 4 GB of VRAM. There are many different types of GPUs available in the market. Out of all the types, the most popular one is NVIDIA GeForce GTX 1070. Most of the miners use this GPU for mining as it is profitable than others.
- Electricity Cost: This is one of the most important things you need to consider. The electricity cost affects profitability to a great extent. Mining requires a lot of computing power which increases the electricity bills. The KW/ hour cost should be as low as possible. If the cost is more than $0.30 KW/ hour, mining will not be profitable for you.
- Type of Cryptocurrency: The profitability of mining also depends on the type of cryptocurrency you are mining. It is more profitable to mine certain cryptocurrencies like Bitcoin Gold, Grin, Litecoin, Ravencoin, Ethereum Classic, etc.
Increase in the Price of GPUs:
The cost of GPUs has skyrocketed in the last few years. Even though the MSRP is less, the Graphics card is being sold for more price due to a sudden surge in demand and less availability.
Here are some of the reasons why GPU prices have increased in 2021.
- High Demand: The demand for GPUs have increased during the pandemic as most people have a lot of free time to play games as well as mine crypto.
- Less Supply: Due to the current pandemic, the raw materials to manufacture GPUs are not available. Companies are not able to meet the demand as the production is slow.
- Slow Shipping: International shipping has not only become time-consuming but costly as well. It leads to an increase in the prices of GPU.
- Crypto Mining: As most people have lost their jobs, they have switched to crypto mining instead. Because of the sudden rise in demand, the price of GPU has increased.
Here is the comparison of the actual GPU price and the MSRP. It clearly shows how the prices have skyrocketed in 2021.
- ROG Strix GeForce RTX 3070: $1500 to $2110
- EVGA GeForce RTX 3070: $1600 to $2220
- ZOTAC GeForce RTX 3060: $920 to $1530
- ASUS TUF Radeon RX 6800: $1500 to $1950
Best Mining GPU in 2021:
Even though the prices of GPUs have increased in 2021, it is still profitable to mine crypto with it. However, there are only a few GPUs that are currently profitable. Here are some of the best Graphics Card you can use for crypto mining in 2021.
- NVIDIA GeForce RTX 3090: It is one of the latest GPUs by NVIDIA. It was released in September 2020. The Hashrate is 114.00 Mh/s. You can enjoy $8.60 revenue and $7.84 profit from mining on a daily basis.
- AMD Radeon Vll: It is an old GPU, but it is still profitable. You can enjoy $7.02 revenue and $6.54 profit from mining on a daily basis.
- Radeon RX 5700: The mining performance of this GPU is 51.3. You can make a $7.21 profit on a daily basis from mining.
- NVIDIA GeForce RTX 3080: This is another product from NVIDIA. It will give you a profit of $6.35 on a daily basis.
- MSI Gaming GeForce RTX 2070: It is a powerful GPU with gaming and mining. It is hardly available, but you can make a decent profit using this device. You can earn a $6.12 profit with this card.
How EIP-1559 Will Affect GPU Miners?
EIP Stands for Ethereum Improvement Proposal. As per EIP-1559, the developers of Ethereum cryptocurrency have come up with few changes to improve the Ethereum platform.
However, the changes are not in favour of miners. Most of the GPU miners make money from mining Ethereum as it is one of the most profitable cryptocurrency to mine.
In return, they earn rewards and transaction fees. With the introduction of EIP-1559, the miners will not be eligible for earning base fees. It will be burned while mining Ethereum and the miners will only get inclusion fees.
As the base fees are the largest part of the fees miners earn, the new policy will eat up most of their profit from mining. It will reduce their mining revenue.
So, is GPU mining still profitable in 2021?
Well, currently, it is profitable for miners who use the right GPU hardware. However, once EIP-1559 will be executed in July, it will not be much profitable for miners. GPU mining will only be profitable till July.