As the Bitcoin and the rest of the cryptocurrency market dipped over the past several months, so has the price of GPUs. Computerworld has reported that the price of high end GPUs have gone down in correlation with the price of a Bitcoin.
The reason for the connection is that the processing power of these high end gaming cards make them perfect for the mining of cryptocurrency. As the mining of Bitcoin and other cryptocurrencies became more profitable and therefore more popular, miners rushed to load up on high end GPUs to give themselves as much of an advantage as possible in the crypto mining world.
When the cryptocurrency market was at its height and Bitcoin was around $20,000, the prices of GPUs were higher than they had ever been. The price surging annoyed many gamers and others who desire high computing power but don’t have any interest in Bitcoin or the mining of any cryptocurrency.
Now, with the market going in the other direction, there has been a reversal in the uptrend game price of high end GPUs.
According to the Jon Peddie Research group, more than three million graphics cards or AIBs worth $776 million were sold to cryptocurrency miners in 2017. But the team at Jon Peddie Research saw this GPU price dip coming.
Robert Dow, the manager of digital media at Jon Peddie Research told Computerworld 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.”
The implications of cryptocurrency use and adoption will be far reaching and there could be many effects that will remain unseen until they are upon us.