Graphics cards are very important nowadays due to cryptocurrency being the most popular it has ever been. There has been a shortage of GPUs ever since people other than gamers started demanding them. This has resulted in many gamers frustrated over not being able to buy GPUs for their gaming rigs. To combat this, Nvidia is suggesting retailers prioritize the gamers over the miners.
Without the mining process, cryptocurrency cannot exist. New tokens are found using the process of mining. The entire mining process is dependent on a PC with decent hardware.
As more and more crypto tokens get mined, the harder it gets to mine newer tokens. That explains the need for higher power machines. The ‘problem’ started arising when people found out that GPUs are much more efficient in mining than CPUs. This made the demand for GPUs to spike ever since and has caused multiple shortages.
It makes sense for people who can afford the decent hardware to partake in the mining process as the cryptocurrency market has proven to be a rewarding one.
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Many people who mine are also big firms or rich investors who buy multiple graphics cards in order to build powerful machines for maximum gains. This ultimately creates a shortage in the market and gamers are left behind.
With retailers like Newegg out of stock, third-party sellers see the opportunity in front of them and thus sell the GPUs at a much higher price than the retail price. Many retailers also see the opportunity to make higher profits and increase the price according to the demand.
This has been the case for many powerful cards that would be considered ‘beasts’ for gaming. Cards such as the Nvidia GTX 1070, GTX 1080 and GTX 1080 Ti, and AMD’s Radeon RX 570, 580, Vega 56 and Vega 64, all of them are being sold well over their retail price.
Lower end cards have also seen a considerable price spike. This is because when miners don’t get the higher end cards they settle for the not-as-good but still moderately well GPUs. It’s simple demand and supply, the supply can’t meet the demand hence the prices are driven up considerably.
Ultimately, this troubles the gamers who are the people companies like Nvidia and AMD originally make these cards for.
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Therefore, Nvidia is asking retailers to try to prioritize gamers instead of miners.
“Gamers come first for Nvidia,” said Boris Böhles, PR manager for Nvidia in the German region.
“All activities around our GeForce products are for our core audience. We recommend our trading partners make arrangements to ensure that gamers’ needs are still met in the current climate.”
It makes sense from Nvidia’s point of view. This is because when Nvidia makes these GPUs, they make them keeping the gamers’ needs in mind. Whenever big companies like AMD and Nvidia unveil new GPUs, it’s always mentioned how well they perform in games, it’s not mentioned how well this card would be for mining. If Nvidia’s main customer base suffers then according to them it’s a problem.
However, from many sellers’ point of view, this is a profitable situation which they can exploit to their fullest for maximum monetary gains. Retailers get to sell more of their products at almost double the initial prices.
Moreover, miners make sure all of their stock gets sold out which would hardly happen with the gaming market. Therefore it’s uncertain how much of Nvidia’s suggestion would retailers actually follow.
Still, many retailers are trying to limit the amount of GPUs they sell. Currently, many retailers have adopted the policy of only selling one or two GPUs per customer.
However, that tactic can easily be worked around and the prices show that. If gamers are to enjoy GPUs for what they were made for, then retailers must listen to what Nvidia has to say and prioritize gamers over miners.
ALSO READ: MINING ALTCOINS: EASY TO MINE CRYPTOCURRENCIES AND HOW TO DO IT!
