With the rise in bitcoin price among other cryptocurrencies, miners are demanding for powerful rigs that can have about 500 graphics cards resulting in the global shortage of GPUs. This leads to a massive hike in the prices of these cards and shift of miners to Hong Kong and Singapore for cheaper rigs.
Rise in bitcoin price leads to worldwide shortage of GPUs
The bullish rally of 2017’s cryptocurrency market attracted a vast multitude of investors as well as miners looking to make good profits. However, the boom in the cryptocurrency mining also led to the shortage of Graphic Card Units (GPUs) worldwide.
These high-end graphics cards are an efficient way to mine cryptocurrencies as the number of miners are increasing along with big players entering into this booming sector. Also, the price of these GPUs are scaling through the ceiling.
As for using older cards, it means slower computing ability that lowers a rig’s profitability. And at the current crypto prices, a crypto miner can earn about $10 on a $1,300 card. This means, a good size rig can make good profits over an year.
It has been reported by the retailers that during the crypto market correction, there has been a dip in the demand for cards. But now as the bitcoin prices are rising, it has been speculated that the GPU depends will surpass that of last year.
Market players trying to take advantage of the situation
Vedha V3C 8 GPU Minercase is one such card that miners and PC gamers both the parties are looking for that is right now made available by Amazon at a great price of $168.88. But this attractive deal is only for the members of Amazon Prime.
Due to the reason that Cryptocurrency mining uses many GPUs that certes a lot of heat, Vedhha V3C 8 GPU Minercase is apparently the perfect option. This card is durable and stackable that claims protection of the electronic components like GPUs. Moreover, it has been designed specifically for the purpose of heat dissipation.
The shortage of GPUs will only increase the introduction of these types of deals as the market players like Amazon will try to profit from the current scenario.
Hong Kong & Singapore jammed with crypto miners for cheaper hardware
A large number of miners are coming to Asia to purchase the cryptocurrency rigs. For instance, Sim Lim Square in Singapore and Sham Shui Po in Hong Kong are packed with people for these rigs.
One of the bitcoin miner quoted:
“It’s 30-50 percent cheaper to buy equipment related to crypto-mining in Hong Kong than in Europe.”
The primary reason for Hong Kong being a hot place for these purchases is that there is no sales tax here. Moreover, the place is closer to the component manufacturers of China.
What are your views on the rise in bitcoin price resulting in the global shortage of GPUs and further dramatic increase in their prices? How do you think this issue can be resolved? Let us know below!
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I am an associate content producer for the news section of Coingape. I have previously worked as a freelancer for numerous sites and have covered a dynamic range of topics from sports, finance to economics and politics.