GPU mining has much more resilience to a market downturn than ASIC (Application Specific Integrated Circuits) mining because ASIC mining requires a significant amount of electricity per dollar made vs GPU based mining. In other words, GPU mining requires significantly less power for the same dollar value of mining proceeds.
Another reason GPU mining has reduced risk compared to ASIC mining is in an event of a major market downturn, ASIC miners will become essentially useless and worthless, while GPU’s can be boxed up and sold to video gamers or utilized for a wide range of other applications.
GPU mining also allows for flexibility in which cryptocurrency can be mined. If a certain currency becomes more profitable to mine, GPU miners can be switched to mine the more profitable currency. ASIC miners are ‘Application Specific’, if the difficulty increases, profitability decreases. This will happen until the system can no longer maintain profitability, at which time, the units essentially become worthless.
With that said, GPU and ASIC miners both have their place in the market and SOLminer works with both. We analyze a variety of factors to determine the best solution. Some considerations for choosing GPU vs ASIC miners include risk tolerance, available power, space, budget, goals, etc.