Since single CPU could only execute one instruction at a time. Basically, what Multi-threaded CPU does is switch back and forth between multiple threads within single core. Since single-threaded & singl-core CPU could do multitasking by context switch between processes, why does Multi-threaded CPU matter?
1 Answers
You're mixing up quite a few things here ...
First of all : hardware-threads have next to nothing in common with software-threads. As far as i know, there can only be n hardware-threads on a CPU whereas n is the amount of real or virtual CPU-cores (an ALU, for example)
Context switching is done to allow the illusion of parallelism on one single core. Now : since there are no CPUs without several cores anymore, every CPU supports MT which effectively enables somewhat real parallelism - multiple calculations can be done at the same time yet the result has to be pipelined.
Modern CPUs even simulate additional cores - thats possible because there is a time-gap between result-delivery and command-dispatch, AFAIR - this can be used for additional calculations ... thats called hyperthreading and can boost your performance a bit.