When to upgrade your crypto mining hardware
A miner’s hardware is essential to his or her success. Without the right equipment, you’ll be unable to mine profitably over an extended period of time. Choosing the right mining hardware will depend on your circumstances and can range from a single unit to an entire warehouse of equipment. But no matter your setup, there will inevitably come a time when you need to update your rig. These reasons can vary, and being able to know when it’s time can keep you from missing out on valuable coin. Here are some tips for determining the right hardware for you and knowing when it’s time to upgrade.
Mining hardware generally comes down to two types – ASIC and GPU.
ASICs are microchips specifically designed to execute a hashtag algorithm as quickly as possible. This method is more advanced and more powerful than GPU, but it is also more expensive and specialized. ASICs are typically custom-built for a single hash algorithm, requiring you to buy a different ASIC for each coin you want to mine.
GPUs, on the other hand, are not as powerful but are more versatile in how you can use them. They are also easier to buy and are not as scarce as ASIC, in addition to having decent resale value. The decision to mine using ASIC or GPU ultimately comes down to your main objectives, budget, and computing ability. This decision will factor into when you should upgrade your hardware, as well.
Knowing when to upgrade
It’s impossible to put a strict timeframe on how long your mining hardware should last. It could be a week, or it could be 10 years. You need to look at a number of other factors to know when to upgrade. Maybe your equipment has taken a beating due to high-stress usage, or maybe you want to scale up to become more profitable. Whatever the reason, these indicators should help drive your hardware updating decisions.
Wear and tear
Mining, especially at a high level, takes a toll on both ASIC and GPU hardware over time. When GPUs are running full speed at all times, the fan needed to keep the rig cooled wears out by operating at such a rapid pace. While mining hardware is designed to withstand hard work, the impact of such high-stress performance is often underestimated. Pushing hardware to the limit on a constant basis is sure to lead to eventual failure. When performance starts to slow down, it’s time to upgrade.
Increased mining difficulty
Hardware replacement due to increased difficulty is more common than replacement due to wear and tear. As the scarcity of a currency grows, it becomes more difficult to mine successfully and requires more power to do so. Your chance of receiving a block reward on a currency is proportional to how much network power you have. This relationship leads to a need for more efficient computing power if you want to make more money. So if you find yourself struggling to keep up with the increased difficulty of an increasingly popular coin, it’s time to upgrade your rig.
More power equals a longer life
The power advantage of ASICs and their ability to perform at a high level for a longer period of time means they don’t have to be replaced as often. The more power you have, the greater profit you’ll turn and the longer your equipment will continue to perform. Mining colocation offers the best opportunity to get the most out of your rig. A professional colocation provider will deliver an ideal mining environment to host your equipment while operating at a lower cost.
Mining with Compute North
Compute North provides industry-leading colocation solutions to help miner’s make the most of their operations. Contact us today to take your mining efforts to the next level.