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A mining rig may seem like an expensive investment, especially in 2022, but if you’ve been thinking about getting into cryptocurrency mining but aren’t sure if it’s worth it, we can help. Or, if you’re already an experienced crypto miner but want to know the best coin to mine with GPU, you’ve come to the right place.
It’s important first to address the myth that GPU mining can damage your computer. However, in general, there is no danger in GPU mining. The only factor to be aware of is how much you’re doing it, as parts will always degrade no matter if you’re mining on your computer or not. The GPU and components directly attached to it may degrade more rapidly during periods of continuous use, but this is often to a lesser extent than if you were using it for gaming.
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That said, it’s all about balancing the tradeoff of purchasing new parts, electricity consumption, and the return on investment you get with the mining process.
Before diving into our recommendations for coins to mine, there’s an important question we need to address…
Is GPU mining still profitable in 2022?
In short: yes, mining is profitable in 2022.
GPU mining remains viable even though the majority of coins are mined using ASICs, and only a few can be mined using GPUs. This is because, in contrast to ASICs, graphics cards are capable of mining algorithms of any complexity. Plus, switching between coins is simple and does not necessitate the purchase of a new machine.
The longer answer adds a few extra considerations to this.
Looking back to the peak of mining profitability, from April to May of 2021, profits have fallen by roughly 40%. A complete return on investment took only about two to three months which meant in this same period of time, you’d have been able to pay off the price of the GPU.
Let’s look at some stats: Every day in 2021, a miner would earn roughly 0.0006 BTC at a time when 1 BTC was equivalent to around $50k. That would work out to about $30 per day per miner.
However, you must consider that profits were extraordinarily high in 2021, especially compared to previous years. Think about it this way: back in 2018, GPUs would barely break even. Sometimes the GPU would be unable to generate any revenue at all.
Nowadays, in 2022, a miner could expect to earn roughly 0.0004 BTC per day when 1 BTC is equivalent to around $40k at the time of writing (although this is currently dropping!). That would work out to about $16 per day per miner.
As you see, it is less profitable than it was a year ago to mine cryptocurrencies on a GPU.
Of course, the profit margin is determined by many, many factors, including the current cost of electricity. Put simply, profit margins rise as the cost of electricity falls and vice versa.
Another factor is whether you’ve already got the necessary equipment needed to begin mining. It’s much easier for us to recommend that you start mining now if you already have the equipment. Using your GPU rig, there’s always a chance you can make a decent amount of money and even recoup the cost of the rig.
Or, perhaps you just need a new graphics card to keep up with the increased demand mining brings to your setup. Then you’ll be more likely to recoup your investment.
At the very least, there’s hope until ETH switches to a proof-of-stake architecture. We’ll cover this below.
What is the most profitable coin to mine with GPU?
For now, you should concentrate on mining Ethereum (ETH) as the stable coin is currently the most profitable cryptocurrency to mine with a GPU due to its current price.
ETH is one of the ten most profitable cryptocurrencies to mine using a graphics card, with the cryptocurrency itself coming only second in size to Bitcoin (BTC).
However, this is only for now. At least for 2022.
Why? As Ethereum is transitioning to ETH 2.0 in the future, which will bring ETH’s Proof of Work (PoW) system to an end, which also affects GPU mining, meaning you will no longer be able to mine ETH using your graphics card. ETH 2.0 will use a Proof of Stake (PoS) system instead, which will be a watershed moment for the status of GPU crypto mining.
As a GPU miner, you should continue to mine ETH until the PoW ends, as this type of mining isn’t going away until at least ETH 2.0. Plus, it should be noted that not even the Ethereum developers are sure when precisely the PoW phase will come to an end.
According to developer tweets, the transition will not occur in June as initially announced. Maybe it’ll happen by September, but this is still speculative. The most likely time frame for completion is 2023.
After ETH 2.0, plan to redirect your mining machines to something else. You won’t completely lose access to ETH as a cryptocurrency, as you’ll be able to mine other coins with your GPU and exchange them for ETH.
As ETH is such a popular choice for GPU mining, be prepared for the process of mining different altcoins to become increasingly difficult after ETH 2.0, as more and more people with GPU mining rigs flock to them.
What coin is best to mine with an Nvidia GPU?
As previously stated, you should focus your efforts on mining Ethereum (ETH) for the time being, as Ethereum is the most profitable cryptocurrency and the best coin to mine with a GPU at the moment.
To mine ETH, you only need a computer with an NVIDIA graphics card. NVIDIA graphic cards are great for mining ETH as the NVIDIA GPU architecture makes mining more efficient. This helps you reap the benefits of increased mining ROI.
If you’re concerned about power consumption and up-front costs, the NVIDIA GeForce RTX 3090 is an excellent choice for the best mining GPU.