BT Daily News: Can I mine cryptocurrency with a GPU? And more
1. Can I mine cryptocurrency with a GPU?You can mine cryptocurrency with your CPU, but it’s not recommended. At-home mining is often done using GPUs, and CPUs are much slower at mining than GPUs.
For this reason, many miners use their computer’s spare processing power to mine cryptocurrency. Unfortunately, this process involves solving complex mathematical problems and providing solutions. Others will want to verify that transaction data is legitimate before they can add it to the blockchain ledger.
When a computing device mines cryptocurrency using its own hardware, it often requires less electricity consumption. However, one shouldn’t ignore the electricity costs associated with mining cryptocurrency.
Mining cryptocurrency with a GPU can be profitable, but it’s not recommended. This is because GPUs are better suited for mining than CPUs and FPGAs, but worse at mining than ASICs.
If you want to mine crypto with a GPU, you should only do so if there’s no good way of getting cheap ASIC hardware.
You can mine cryptocurrency with a GPU with the proper hardware and software. If you’re looking to mine Dogecoin or other popular coins, then it may be worth buying a GPU.
However, if you’re starting out with mining and don’t want to spend too much money, then using your CPU might be a better option until you have some experience. Mining cryptocurrency such as Monero becomes a viable option in that regard.
2. Mining cryptocurrency in S’pore: is it legal and can you actually earn passive income from it?There are no laws restricting crypto mining in Singapore. That being said, there may be clauses against it in housing contracts.
In April 2022, students were made to remove their crypto mining rigs from their dormitories at the National University of Singapore (NUS). The university cited safety concerns due to the excessive heat generated by the rigs.
For those looking to mine crypto, there are two primary costs to account for: the initial investment in computational hardware, and the recurring electricity costs.
In Singapore, the current electricity rates (inclusive of GST) are 31.27 cents per kWh. These are relatively high when compared to other countries around the world.
Since Singapore doesn’t have access to its own source of fuel, the natural gas import costs contribute to the high prices. To put it in perspective, electricity costs in the US — which takes up a majority share in Bitcoin mining — can be as low as 11 cents per kWh.
Profitability could change in the future depending on how the crypto market fares, however, there’s no guarantee. As the Bitcoin price recovers, more miners might be incentivised to join the pool. The increased competition could counteract any of the resulting benefits.
Money aside, there’s also an environmental aspect to consider. Bitcoin mining contributes heavily to greenhouse gas emissions. In fact, the energy used by the Bitcoin blockchain could power entire nations such as Belgium and the Philippines.
All things considered, Bitcoin mining – as convenient as it sounds — remains unprofitable in Singapore at this point of time. Unless you have someone else bearing the electricity costs, that is.
3. Bitcoin Miners and Average HODLers Are Back in the BlackBitcoin rallied over the weekend and is now trading above $20,000 for the first time since the spectacular collapse of Sam Bankman-Fried’s FTX. This means it’s now profitable again for mining companies to run the expensive hardware necessary to mine the Bitcoin network. It also means that your average Bitcoin hodler, if they sold their stash now, would no longer be selling for a loss.
Glassnode estimates that Bitcoin's "realized price," the average price that current investors paid for BTC, is at around $19,700. The average price that Bitcoin traded for in the last 155 days is $18,000, says Glassnode. In either case, Bitcoin is now trading well above that mark, today changing hands at more than $21,000.
The rally means miners are also getting some relief, notes the analytics firm. Bitcoin mining is the use of computational power to solve the complex math equations necessary to create new Bitcoin. According to Glassnode, it currently costs roughly $18,800 to mine Bitcoin. With Bitcoin now trading above $20,000, that means the average mining firm can once again operate while actually making a profit.
The price of Bitcoin jumped last week following news that inflation rates in the U.S. have started to cool. The Federal Reserve throughout 2022 has been raising its benchmark rate to quell record-high inflation in the United States, bringing down risk assets across the board, including both stocks and Bitcoin.