Crypto News

Cryptocurrency Markets’ Ambiguity Drags Down GPU Prices

Cryptocurrency Markets’ Ambiguity Drags Down GPU Prices

Predictably, ambiguity in the cryptocurrency market is having an unfavorable impact on the specialized graphics processing units (GPUs). This would mean that those who are engaged in making GPUs could suffer in the current year as they were hoping to capitalize on the boom in the digital currency sector. GPU is a key factor in virtual mining assets, and the sharp drop in prices suggested that the demand from the crypto community has weakened considerably. This is in contrast to the trend seen early in the year.

Supplies Increasing

There are multiple factors that are contributing to the drop in GPU prices though they are mostly related to cryptocurrency sector. For instance prices of add-in board (AIB) are dropping amidst a significant drop in prices of most of the virtual coins, cointelegraph reported. Supplies of GPUs have also been increasing since the trend at the beginning of year indicated a significant demand is coming from the digital coin sector. However, that failed to happen and on the contrary, reversed it. The regulatory pressures have undoubtedly played its part in dragging down the prices of cryptos.

Jon Peddie Research digital media manager, Robert Dow, told the media that he was not surprised and that the drop was a predicted one. He 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.” In 2017, a survey by the firm indicated that AIBS worth $776 million were purchased by miners. Several high-end expansion boards were in great demand at the end of last year and beginning of the current year.

AMD is one of the manufacturers of GPUs, and its OEM 4GB RX580 six-pack suffered a price drop of about 30.6 percent to roughly $2,500 from about $3,600. Similar is the case in respect of Nvidia’s GeForce GTX 1080 Founders Edition with 8GB GDDR5X PCI Express 3.0 Graphics Card. The price dropped 32.5 percent to just $709 from about $1,050.

Dow thinks that both AMD and Nvidia might have built up inventory. This meant the average selling price would continue to face pressure towards downwards. Before AIB was used for mining, prices were either flat or trending downwards modestly. This is unlikely to be changed until the launch of new families of cards.

New Mining Hardware

None-the-less, the manufacturers are not worried about the price slump and started releasing new mining hardware for digital coins. For instance, ASUS indicated in May about the introduction of mining motherboard for cryptocurrency terming it as the “second generation.” The device could come to the market anytime in the third quarter.

Similarly, Bitmain, a Chinese tech firm, declared the launch of an Ethash ASIC miner. The company termed it as not only efficient but the most powerful EtHash ASIC miner in the world. Incidentally, the Chinese firm delivered better overall profits last year than the American-based Nvidia. One of the primary reasons for it was that it could capture 70 – 80 percent of Bitcoin miners market and ASICs.

About the author

mm

Eleni Steinman

Eleni worked as a business consultant in Yale. She believes that new technologies have tremendous impact on everyone’s life and poses big opportunities for businesses. She got into cryptocurrencies soon after Ethereum showcased various applications of blockchain.

Add Comment

Click here to post a comment