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Having a high usage isn't necessarily bad. Well written code can consume 100% of the CPU ...
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True. It's not unusual for safety critical embedded software to use all available leftover time to run background health monitoring.
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Both loops are busy loops - they will consume all available CPU time to check to see if 500 milliseconds have elapsed
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If you've got a 32-bit Windows machine,
here's a simple demo why this is important.