Mining

GPU Prices Fall Correlating With the Cryptocurrency Market

GPU Prices Fall Correlating With the Cryptocurrency Market

Graphics Processing Units (GPUs) have become important primarily for mining of cryptocurrencies. Thus the recent slump in the cryptocurrency prices has lead to GPU prices falling due to lower demands.

GPU’s had seen to be rising in prices from 2017 end to the beginning of 2018 when the cryptocurrency markets were seen to skyrocket to unbelievable levels.

These Add-in boards (AIB) are dependent on cryptocurrencies. Robert Dow, Manager at Digital media company Jon Peddie Research C. said,  “the cost to run the mining rigs is not insignificant, so when the price for the currencies drop… people will run rigs and choose to dump AIBs on the secondary market hoping to recover some cost.”

Jon Peddie Research found out that 3 million AIBS worth $776 million were bought in 2017. Most of them belonged to the famous microprocessor manufacturer AMD. As supply and demand determine prices, due to the shortage in supply it leads to a higher increase in rates during the cryptocurrency highs of late 2017.

Prices of GPU’s such as AMD’s OEM 4GB RX 580 six pack was sold for $3,600 at the time cryptocurrency was at a significant bull market. As of now, the product has fallen to $2,500. Nvidia GeForce GTX 1080 Founder Edition,8GB GDDR5X PCI Express 3.0 Graphics Card was $1,050, and now it is at a mere $709!

Dow explained the situation best by stating, “We also suspect that Nvidia and AMD have some built up inventory, and that will affect ASPs as well. Prior to the surge in buying of AIBs for cryptocurrency mining, AIB prices were flat to declining slightly which is a trend that will continue at least until new families of cards are introduced.”

Even though cryptocurrency prices falling is affecting the price of cryptocurrency mining hardware such as GPU’s it has not stopped hardware companies doing what they do best.

Asus will release a second-generation cryptocurrency mining motherboard by the beginning of the third quarter of 2018.  The Chinese giant Bitmain has already announced Ethash ASIC miner.

Even Nvidia, which designs GPUs for gaming and professional markets realized an increase in sales due to cryptocurrency mining.

If you are looking at buying a good GPU for your future cryptocurrency mining plans, now is the right time to do it!

Image Source: “Flickr”


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