CPU mining is a process of adding transaction records to the public ledger of cryptocurrency by performing necessary calculations with a Central Processing Unit (CPU). A CPU is a part of computer that provides computing power for execution of operations performed by software installed on that computer.
Description
Central Processing Units are designed in such a way that they are very suitable for rapid switching between different tasks. CPUs should be very well adjusted for beginning of a new type of work so a user shouldn’t wait much between working with various programs. CPU’s are also highly capable of following instructions of the “if this, do that, otherwise do something else” type for fast execution of algorithms. However, the necessity of fast switching between tasks made CPUs not very well prepared for repetitive and long mathematical calculations. CPUs can do math, as inside every CPU is one or more “Arithmetic/Logic Units” (ALU’s). However, GPU has much more ALUs than CPU and as a result, they can do large amounts of mathematical work in a greater quantity than CPU.
CPU mining was initially allowed in Bitcoin client’s earlier versions but pretty soon hashrate of the network grew too much for CPU mining to be profitable. The amount of produced Bitcoins became lower in value than a power needed to operate a CPU. As a useless feature, CPU mining was removed from Bitcoins core, GPU mining became the only way to mine Bitcoins for some time. Most of other cryptocurrencies, especially popular ones, also can’t be profitably mined with CPU due to high hashrate of the network. However, it is possible to find a new promising crypto that can be successfully mined with CPU and gather some profit in a long term.
There are some cryptocurrencies, especially designed for profitable mining with CPU. Most of CPU mining coins are CryptoNight-based coins like Bytecoin, Quazarcoin, Monero, Electroneum and some others. CryptoNight cryptocurrencies are developed based on ideas of CryptoNote team, one of which is making mining available for everyone despite their differences in computing equipment. As CryptoNight-based coins use CryptoNote’s egalitarian Proof-Of-Work, they are utilizing built-in CPU instructions, which are very hard and too expensive to implement in special purpose devices (ASICs), but perfectly suitable for ordinary PCs.
Due to mentioned approach, Bytecoin and its forks were only CPU-minable and ASIC-resistant. However, some of the current ASICs work perfectly fine with multiple CryptoNight coins and CPU mining of them isn’t that profitable anymore. Still, Monero team, for example, is actively fighting ASIC participation in mining of the cryptocurrency and even made a hard fork to let Monero CPU mining remain the only way to make new XMR coins. There are also come cryptocurrencies that are not CryptoNight-based and initially allowed profitable CPU mining, some of them are Litecoin, Dash, Hatch and ZCash.
Pros & Cons
Advantages:
- CPU mining is available for everyone who has a computer
- Some cryptocurrencies are only CPU-minable
- CPU mining is a good way to try cryptocurrency mining out before making any purchases and investments
- Using CPU as addition to GPU mining can lead to some additional benefit for a miner
Disadvantages:
- CPU mining is unprofitable to use for the mining of most cryptocurrencies
- CPU mining is not allowed for mining of some cryptocurrencies
Profitability
Profitability of CPU mining can be relatively high in three cases.
In most of other cases CPU mining is not profitable anymore for absolute majority of cryptocurrencies.
Some coins that can be mined with CPUs:
See also
Sources
FAQs
CPU mining is a process of adding transaction records to the public ledger of cryptocurrency by performing necessary calculations with a Central Processing Unit (CPU). A CPU is a part of computer that provides computing power for execution of operations performed by software installed on that computer.
What is CPU mining? ›
CPU mining is using a central processing unit (CPU) to mine cryptocurrency. CPUs can be found in everyday hardware like laptops and desktop computers. However, unless you're reading a crypto mining article from the early 2010s, you likely won't come across the mention of CPU mining in regards to Bitcoin.
Is CPU mining Risky? ›
Cryptocurrency mining does not damage the GPU, CPU, or any other computing hardware. However, the equipment operates at a constant maximum load, which can cause overheating.
What is the most profitable CPU mineable coin? ›
For instance, CPUs with standard computer hardware resources can be used to mine Monero. However, if you're seeking for the most lucrative cryptocurrencies to mine, Bitcoin and Ethereum should be at the top of your list.
How does bitcoin mining work wiki? ›
The mining process in Bitcoin involves maintaining the blockchain through computer processing power. Miners group and broadcast new transactions into blocks, which are then verified by the network.
Is CPU crypto mining profitable? ›
Most of other cryptocurrencies, especially popular ones, also can't be profitably mined with CPU due to high hashrate of the network. However, it is possible to find a new promising crypto that can be successfully mined with CPU and gather some profit in a long term.
Which is better, GPU or CPU mining? ›
Conclusion. Between CPU mining and GPU mining, the GPU wins for its efficiency and ability to keep up with the work demand required in a more competitive crypto mining network. Both setups have advantages and disadvantages, so if you're serious about crypto mining, you should definitely invest in a GPU setup.
What is the most profitable Bitcoin mining hardware? ›
The Bitmain Antminer S21 Hyd 335T is the most profitable Bitcoin mining machine currently, followed by the Canaan Avalon Made A1266, and MicroBit Whatsminer M50S. If you want to mine other cryptocurrencies, the Bitmain Antminer KS3, Bitmain Antminer D9, and Bitmain Antminer K7 are all solid choices.
Which coin is most profitable to mine? ›
#1 Bitcoin (BTC)
Efficient Bitcoin mining necessitates specialized ASIC hardware, complemented by widely utilized software like CGMiner and BFGMiner. Additionally, Bitcoin halving events introduce heightened mining difficulty, momentarily dampening mining profitability until the market value of BTC rebounds.
What coins can you mine on CPU? ›
How much money can you make GPU crypto mining at home? Mining crypto at home with a CPU is possible with coins like Monero, Zcash and Byte, but it will be a slow process and the cost of electricity may be more than the value of the coins you can mine.
How long does it take to mine one Bitcoin? It takes around 10 minutes to mine just one Bitcoin, though this is with ideal hardware and software, which isn't always affordable and only a few users can boast the luxury of. More commonly and reasonably, most users can mine a Bitcoin in 30 days.
Does Bitcoin mining actually pay? ›
Does Bitcoin Mining Actually Pay? Bitcoin mining can be profitable if you contribute enough hashing power to a mining pool to receive larger rewards. If you're solo mining at home on your computer, you may never receive rewards.
Is CPU mining better than GPU? ›
In the context of crypto mining, CPU mining involves using the computer's primary processor to execute the mining software and perform the requisite calculations. While CPU's are less powerful than GPU's and ASIC's, their versatility allows them to mine virtually any coin (in theory).
Is mining bitcoin illegal? ›
Federal Regulations
The federal government does not currently ban cryptocurrency mining. However, ongoing discussions about new tax policies could impact the industry. Notably, the Biden administration has proposed a 30% excise tax on the electricity used by cryptocurrency mining operations.
What is the CPU requirement for mining? ›
CPU usage depends on the number of concurrent users. A minimum of four cores is recommended. The memory usage depends on the amount of data per application and the number of concurrent users. The disk needs to be large enough for the operating system, UiPath Process Mining, the data, and cache files.
