ASIC vs GPU Mining: What Is the Difference
ASIC miners run one algorithm, while GPUs run many. Compare their hardware, the coins they mine, and the main risks each type faces in mining.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20262 min readFact-checked
On this page
- ASICs run one algorithm, such as SHA-256.
- GPUs run many algorithms across ASIC-resistant coins.
- Bitmain builds ASICs; Nvidia and AMD make GPUs.
ASIC miners are specialized machines for one algorithm, while GPUs are general-purpose processors for many. ASICs dominate large Bitcoin farms, while GPUs fit small altcoin mining. Bitcoin mining pays a bitcoin reward for computing power.
ASIC vs GPU mining at a glance
An ASIC is an application-specific integrated circuit built to run one algorithm. ASICs hash one algorithm efficiently, while GPUs run parallel work across many algorithms.
What can each type mine?
ASICs mine Bitcoin and Litecoin, which use SHA-256 and Scrypt. GPUs mine ASIC-resistant altcoins, whose algorithms make specialized chips less effective.
- ASIC miners hash SHA-256 for Bitcoin and Scrypt for Litecoin.
- GPU miners hash ASIC-resistant altcoins.
- GPU miners can switch coins when a network changes.
Who makes each type?
ASIC hardware comes from firms such as Bitmain. GPUs come from Nvidia and AMD.
Where is each type used?
ASICs dominate large Bitcoin farms, where operators seek cheap electricity. GPUs suit small altcoin mining and cloud rentals.
What risks does each face?
ASICs risk obsolescence after a coin forks. GPUs face power costs and weak resale.
Frequently asked questions
A GPU can run Bitcoin software, but SHA-256 is dominated by ASICs.
It uses an algorithm that makes specialized chips less effective, so GPUs stay useful. It is not permanent.
Ethereum switched to proof of stake in 2022, which ended GPU mining for ETH. Many miners moved to other coins.
Not always. A fork can make an old ASIC stop working, but some networks adopt an algorithm existing chips can still hash.
