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Price of Nvidia GPUs rise due to cryptomining craze

24 September 2017 3

The cryptomining craze is real and is spreading like an epidemic. Mining for cryptocurrency requires a powerful GPU to make certain calculations. The faster the calculations are made, also known as hash rates, the higher income you will receive as a miner. Many are jumping on the mining bandwagon, causing a shortage of GPUs. This is because most miners aren’t mining with one or two GPUs but with over hundreds of GPUs in what is called a mining farm. This theory is solidified in the reports which claim that the company’s shipment of GPUs for this summer is over 30-50% ahead of what they had initially planned.

This is causing a sharp rise in prices of Nvidia GPUs along with a shortage of DRAM; video memory which is used on GPUs. Increased demand has led to a shortage of supplies which in turn translates to a higher price. An analyst from Mizuho Financial Group, Vijay Rakesh is convinced that cryptomining is the cause as he says:

Cryptocurrency demand is driving strength in Nvidia’s GTX 1060/1070 cards…The GPU/motherboard OEMs also noted GPU pricing was up [approximately] 25 percent in the last six months…Constrained short DRAM supply and pricing [are] also affecting GPU shipments.

So, is this applicable for AMD GPUs as well? Of course, it is! In fact, AMD GPUs are better at mining than their Nvidia equivalents. However, Nvidia cards are very power efficient when compared to AMD ones which make them a perfect choice since mining-stations need to be on 24/7. This would ultimately lead to a lower cost of electricity and an increase in profits. It seems like both AMD and Nvidia need to find a way to curb the number of GPUs miners purchase. Gamers need them too, you know!


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