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you can and should definitely use a GPU if you can. its much more efficient than a CPU and you'll need a pretty powerful CPU to use it. like at least a high speed i5. preferably an i7.

 

source: I've done the same thing with Elgato for years starting with my old crappy laptop.

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yes you need a GPU because the 1231v3 doesnt have an iGPU so you will not be able to use your desktop because you will have no display output

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