GPU Prices take a Nosedive with the Downturn of Crypto Market

The GPU prices are dependent on how the cryptocurrency market is performing in real time. The correlation factor that both the GPU industry and the cryptocurrency market shares is something that is worth considering and also noteworthy. The reason being the GPU industry not only caters to the gaming industry its biggest stakeholder would be the cryptocurrency industry.

Also Read: Here is a complete mining guide that we have handcrafted. Its ALL ABOUT MINING!

GPU Prices are falling despite being coveted by both cryptocurrency miners and gamers

A research that was being conducted by the John Peddie Research, a tech marketing and consulting firm based in California. A tech publication Computerworld reported the research on Tuesday that the reports showed higher-priced products from AMD (Advanced Micro Devices) and Nvidia both saw a significant price drop.

The price of AMD OEM 4GB RX 580 six-pack version, a top-notch GPU was completely sold out on April with a price of $3,600 which is now available in the markets with a price tag of $2,500, a drop of $1,000 straight.

C. Robert Dow, manager of digital media at Jon Peddie Research, said in an email to the publication, adding

“We have predicted a drop in application specific processors(GPU) as cryptocurrency prices dropped.” “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 [add-in-board] on the secondary market hoping to recover some cost.”

Meanwhile, the research’s data also show that the number of AIB shipments directly to cryptocurrency miners dropped about 55.5% compared to the same quarter of last year.

The report says it all

A website called PCPartPicker provided with additional data to the GPU prices taking a nosedive. The report tracks the prices of the computer components indicating a general downtrend in the GPU industry.

The chart below shows the radical changes in the prices of the Radeon RX Vega 64, a GPU which is a praised a lot by some of the techies last year. The criticism added that this GPU is one of the most elite tools for mining cryptocurrencies. Despite the price peaking in early March the product seems to take a downturn.

GPU Prices

Radeon RX Vega 64 price  Image Source: pcpartpicker.com

 

The GeForce GTX 1070 Ti also followed the similar trend, the GPU has seen a gradual price decline since around the same time. Image Source: pcpartpicker.com

 

The mining of the cryptocurrencies depends a lot on the electricity arbitrage a miner would get. If the investment he makes on electricity and the mining components does not give him the expected return, or mining gives him negative returns to be precise, one would eventually stop mining.

Further, when Nvidia and AMD would publish their financial statements in the future we could then likely predict the market trends the GPU industry follows.

The downturn of the crypto market has also made an impact on the miners who make use of these GPU cards for mining transactions on a network. Now it is evident that the GPU Cards industry is taking a nosedive with the cryptocurrency market, the question is to what extent?

Image Source for the featured image: coindesk.com


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