Is Mining Litecoins on AWS EC2 Profitable? PART 2: GPU Mining

 

In part 1, we looked at mining Litecoins on CPUs rented from Amazon EC2. Now, let us see if we can get better performance by mining Litecoins using GPUs.

Using CPUs, we were able to achieve an average hash rate of 144 KH/s using Amazon EC2’s c3.8xlarge instances, that come with 32 CPUs. Recently, Amazon made available their new generation of GPU instances, called g2.2xlarge, that provide access to NVIDIA GRID GPUs (“Kepler” GK104) each with 1,536 CUDA cores and 4GB of video memory. GPUs are supposed to provide better performance than CPUs when mining Litecoins. Is this true of the virtual computing instances provided by Amazon EC2? Let us find out.

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Is Mining Litecoins on AWS EC2 Profitable? Part 1: CPU Mining

With the value of Bitcoins soaring to record highs, hitting USD 1,242 on 29 Nov 2013, many might be tempted to join in the gold rush of Bitcoin mining. But the competition is fierce, and the difficulty level has risen to a level that makes Bitcoin mining unprofitable for most except those with highly specialized equipment.

Enter Litecoin, the silver to Bitcoin’s gold, which similarly rose to a record USD 48.48 on 28 Nov. Unlike Bitcoin, which uses the SHA256 algorithm that requires specialized hardware called ASICs for maximum performance today, Litecoin “uses a memory-hard, scrypt-based mining proof-of-work algorithm to target the regular computers and GPUs most people already have.” In other words, it is designed for people with commodity high-performance CPUs and GPUs to participate in. What if you do not have a high-performance CPU or graphics card to mine Litecoins with? How about renting them, say from Amazon Web Services (AWS)? In this two-part series, I shall examine whether it is profitable to mine Litecoins with CPUs and GPUs rented from AWS.

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