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Facts about mining cards | GPU Usage in Cryptocurrency Mining

Before 2009, there was no term like crypto. With the advancement of technology to keep pace with the growing demand for cryptocurrency, mining was the norm for many users of their personal computers.

Through the years, the process of mining and its efficiency has increased with the introduction of more powerful equipment. Graphics Processing Units (GPU) have been employed in mining processes for many years because they are superior to their earlier counterparts.


  • A GPU, also known as a graphics processing unit, is responsible for the digital rendering of the computer system.
  • Because of a GPU’s powerful potential compared to a CPU, also known as a central processing unit, it has been more effective in mining blockchains due to its speed and effectiveness.
  • The speed of technological advances will determine how much GPUs will continue to be the norm for cryptocurrency mining at a high level.

Facts about mining cards

How Do GPUs Help in Cryptocurrency Mining?

The initial mining of cryptocurrency was done with CPUs, also known as Central Processing Units. However, their slow processing speed and high power consumption resulted in lower output, making the mining process based on CPUs inefficient.

Then there was GPU-based mining. It provided a variety of advantages in comparison to CPUs. A typical GPU like the Radeon HD 5970 clocked processing speeds of 3,200 32-bit instructions per clock. That’s 800 times faster than the processing speed of a CPU which performs only 4 instructions of 32 bits per clock.

This characteristic of the GPU makes them ideal and more efficient for mining cryptocurrency since mining requires greater performance in the same kind of repetitive calculations. The mining device constantly attempts to decode different ishes continuously with the only digit that changes each attempt.

GPUs also come with many Arithmetic Logic Units (ALU) accountable for performing mathematical computations. Because these ALUs allow GPUs are, GPUs are capable of performing more calculations and resulting in improved output from the cryptocurrency mining process.

GPUs are engineered to do better at doing similar tasks and repetitive tasks than executing multi-tasking capabilities, such as those of CPU.


Every computer standard is fitted with a Central Processing Unit (CPU), which is a processing device that functions as a master of the computer system. It is responsible for controlling the functions of the entire computer based on the programming logic of the operating software and program running on your computer. Common functions, like saving this file in MS Word, printing this spreadsheet, or playing that video with VLC Media Player — are managed through the CPU.

A GPU is a different processing device, however, solely to handle display functions. It is the component of a computer responsible for the display rendering technology.

The main role of GPUs is that they are used GPU can be to perform and manage the rendering capabilities of effects and 3D graphics. This means that the CPU does not have to get involved in the smallest details of rendering services for video. It is responsible for graphic-intensive tasks like editing video, displaying for gaming, and decoding and rendering 3D movies and other animations.

For a more analogous example that the central computer (CPU) overseeing the entire organization (the computers) has a dedicated worker (GPU) to take care of a specialized department (video-rendering functions).

This configuration lets the CPU perform the tasks that are high-level and diverse to manage the entire computer, and the GPU is responsible for the video-related functions, for which it’s a specialist. The CPU will perform the task of opening an audio file in Windows Media Player, but once the file has been opened, it is the GPU in charge of properly displaying the video.

The Bottom Line

GPUs have been in use for some time but now face the challenge of newer, more advanced technology. They include Field Programmable Gate Arrays (FPGAs) and the Applications Specific Integrated Circuits (ASICs) that have better scores than GPUs and CPUs in doing hash computations, which is important to Blockchain management in the cryptocurrency.

Cryptocurrency investment and various other Initial Coin Offerings (“ICOs”) are highly risky and speculative. The information contained in this article is not an endorsement from Investopedia or the author to invest in cryptos or any other ICOs. Because every person’s situation is individual, a professional should be sought out before making any financial decisions. Investopedia does not make any representations or guarantees regarding the reliability or accuracy of the information provided herein.

Harrison Jones
Harrison Jones
Harrison has been a freelance financial reporter for the past 6 years. He knows the major trends in the financial world. Jones’ experience and useful tips help people manage their budgets wisely.


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