ASIC vs. GPU mining, and how mining pools pay
The hardware, the pools and the payout schemes, with real numbers.
Bitcoin is mined almost entirely with ASICs: machines built to do one hash function (SHA-256) far faster and more efficiently than any graphics card (GPU) or computer chip. GPUs are general-purpose and are now used mostly for smaller coins, and Ethereum stopped using miners altogether in 2022. Because a single machine would wait decades to find a block alone, nearly all miners join a pool, which pays them for their share of the work under schemes such as FPPS (steady, the pool takes the luck) or PPLNS (paid only when the pool finds blocks).
ASIC vs. GPU vs. CPU
| Hardware | What it is | Used for today |
|---|---|---|
| ASIC (application-specific integrated circuit) | A chip that can do only one job, such as Bitcoin's SHA-256 hashing | Bitcoin and most large proof-of-work coins |
| GPU (graphics card) | A general-purpose parallel processor, also used for games and AI | Smaller coins whose algorithms don't yet have ASICs; little else since Ethereum left mining |
| CPU (a computer's main processor) | The most general chip of all | Coins deliberately designed for it, such as Monero, whose RandomX algorithm (adopted in 2019) is built to favor ordinary CPUs |
The gap is enormous. A current Bitcoin ASIC such as Bitmain's Antminer S21 XP (released June 2024) is rated at about 270 TH/s, or 270 trillion hashes a second, while drawing about 3,645 watts. A graphics card manages a tiny fraction of that on SHA-256, at worse efficiency, so it can't cover its own electricity.
Specialization cuts both ways. An ASIC can't be repurposed if its coin's price falls or its algorithm changes; a GPU can be sold to gamers or used for other work. That resale value was why GPU mining was popular for Ether, until The Merge in September 2022 ended Ethereum mining overnight.
Efficiency: the number that matters
Miners compare machines by joules per terahash (J/TH): how much energy each trillion hashes costs. Lower is better. The S21 XP's 13.5 J/TH means 3,645 watts ÷ 270 TH/s. Since every miner is chasing the same reward, the one paying less for each hash survives the longest when the price falls or difficulty rises.
Worked example (machine specs above, network hashrate about 969 EH/s in October 2026):
- Your share of the network: 270 TH/s ÷ 969,000,000 TH/s ≈ 1 in 3.6 million.
- Expected new coins per day: that share × 450 BTC (144 blocks × 3.125 BTC) ≈ 12,500 sats, before fees and pool charges.
- Electricity: 3.645 kW × 24 hours = 87.5 kWh a day. At $0.15 per kWh that's about $13.12; at $0.05 it's about $4.37.
Whether that's a profit depends on Bitcoin's price that day, so plug today's numbers into the Bitcoin mining calculator. For the odds of finding a block alone, see can you still mine Bitcoin?
How mining pools work
Alone, the machine above would find a block about once every 68 years on average. A pool combines thousands of miners so that blocks are found often, then splits the rewards.
- The pool sends every miner the same block template to work on.
- Miners submit shares: answers that meet an easier target than a real block. Shares prove how much work each miner is doing.
- Now and then one miner's answer also meets the real network target. The pool publishes that block and collects the reward.
- The pool pays miners according to its payout scheme, minus its fee.
Pools concentrate influence. At the end of 2025, Hashrate Index estimated Foundry USA at about 30% of network hashrate and AntPool at about 18%. The pool operator normally chooses which transactions go into blocks, which is why newer protocols such as Stratum V2 aim to let individual miners build their own block templates.
PPS, FPPS and PPLNS
| Scheme | How you're paid | Who carries the luck |
|---|---|---|
| PPS (pay per share) | A fixed amount for every valid share, based on the expected block subsidy | The pool. Transaction fees often aren't included |
| PPS+ | Subsidy paid per share like PPS; transaction fees shared from blocks actually found | The pool for the subsidy; miners for the fees |
| FPPS (full pay per share) | Expected value of subsidy and transaction fees, per share | The pool |
| PPLNS (pay per last N shares) | When the pool finds a block, the reward is split among the last N shares submitted | The miners: lucky weeks pay more, unlucky weeks less |
Because PPS-style pools absorb bad luck, they usually charge a higher fee than PPLNS pools. Over long periods the expected earnings are similar; the difference is how bumpy they are, and whether you trust the pool to keep paying through a dry spell.
Risks before you buy hardware
- The price can fall while electricity costs stay the same.
- Difficulty usually rises as more machines join, cutting your share.
- The halving cuts new-coin rewards by half about every four years; the next is expected around 2028. See the halving countdown.
- Noise and heat: a 3.6 kW machine is about as loud as a vacuum cleaner and heats a room like several space heaters.
- Hosting and cloud mining scams: many offers of "guaranteed daily returns" are fraudulent.
Related reading: What is a hash? SHA-256 and Keccak-256 explained · Consensus mechanisms: how blockchains agree
Frequently asked questions
Can you mine Bitcoin with a GPU?
Technically yes, but it's pointless: ASICs are thousands of times more energy-efficient on Bitcoin's algorithm (and a single machine is tens of thousands of times faster), so a graphics card earns far less than its electricity costs.
What is ASIC mining?
Mining with machines built for a single hashing algorithm. For Bitcoin, that's SHA-256. They're the only hardware that's competitive on Bitcoin today.
Is GPU mining still profitable after Ethereum's Merge?
Much less than before. The coins GPUs can still mine are far smaller, and earnings are often below electricity costs at household rates.
What's the difference between PPS and PPLNS?
PPS pays a fixed amount per share whether or not the pool finds a block, so the pool takes the risk and charges more. PPLNS pays only from blocks the pool actually finds, so your income varies with the pool's luck.
Which mining pool payout is best?
None is best for everyone. FPPS gives steady income; PPLNS can have lower fees but bumpier payouts. Look at the fee, the payout threshold and the pool's track record.
How much does a Bitcoin miner earn per day?
It depends on its hashrate, the network hashrate, transaction fees and the price. At October 2026 network levels, a 270 TH/s machine earned roughly 12,500 sats a day in new coins before fees. Try the mining calculator.
Where to next
Sources
- Hardware overview: Antminer S21 XP (Hashrate Index)
- Common pool payout schemes: PPS+, FPPS, PPLNS (Foundry pool FAQ)
- Top Bitcoin mining pools (Hashrate Index, December 2025)
- RandomX (Moneropedia, getmonero.org)
- Bitcoin white paper, section 6 (incentive)
- The Merge (ethereum.org)
Written for beginners and checked against the sources listed. Last reviewed November 4, 2026. This page is educational and is not financial, tax or legal advice. How we write and check pages.