The sinking prices in the cryptocurrency market have had a direct effect on the cost of mining digital currencies as high-end GPUs (Graphics Processing Unit) prices have reduced. According to a recent report by Computer World, the cost of purchasing favorite GPUs such as AMD and Nvidia dropped by about 35% between April and July 2018.
Mining cryptocurrencies led to an instant increase in prices of specialized Graphics processing units between the end of 2017 and the beginning of 2018. This trend appears to have changed as digital currency markets continue to experience a slump in prices.
According to a research conducted by Jon Peddie, over three million intensive graphics cards were purchased by cryptocurrency miners in 2017. These GPUs worth about $776 million while most of them were manufactured by AMD. The research predicts a drop in GPU prices as the price of virtual currencies decreases. Jon Peddie’s manager of digital media, C. Robert Dow, noted that:
“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.”
Various high-end graphics adapters were sold out between the end of last year and the start of the current year, and their overall prices jumped, this left gamers and tech enthusiasts unimpressed.
In an attempt to curb the continual price hike, GPU manufacturer, Nvidia, took an unusual step by asking retailers of its hardware to prioritize gamers over virtual currency miners while selling.
In April 2018, an OEM 4GB RX 580 six-pack by AMD was reportedly sold out at $3,600, while it can be purchased for $2,500 in the market today. Similarly, a GeForce GTX 1080 Founders Edition, 8GB GDDR5X PCI Express 3.0 Graphics Card by Nvidia was sold out at $1,050, but it can be bought for about $709 at the moment. Dow further talked about the price reduction:
“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.”
Manufacturers have continued to produce new crypto mining hardware even with recent price slump. ASUS, another GPU hardware manufacturer, recently announced the launching of its “second generation” digital currency mining motherboard, the launch is slated for the early stages of the third quarter of the year.
A China-based tech company, Bitmain announced the launching of Ethash ASIC miner in April 2018. The miner was tagged “world’s most powerful and efficient EtHash ASIC miner.” In 2017, Bitmain had bettered Nvidia in terms of overall revenue, making an estimated profit of about $4 million.