What’s causing this hike in Graphics card prices?
External Graphics Card, since the beginning of their introduction into the market, has never been cheap. Since the start, they have been targeting a niche market of Gamers and Graphic Designers. The active users of both of which have been increasing at an exponential rate. Gone are the days when PC’s were just used for office work only. Nowadays about at-least one person in a family is an avid gamer, and then there’s the “PC Master Race” crowd. So since there are so many increasing users of the graphics card, generally the demand increases and henceforth the price. But this is not even close to the primary reason for the recent price hikes in the GPU industry.
If you want a short and straightforward answer, it’s “Bitcoin“; all the lazy bums can stop reading from here 😀 . But if you want an in-depth analysis of Cryptocurrency and recent hardware price hikes, then please continue reading forward.
As mentioned above, with the increase in demand for a product, the price also increases. Till now there was a growing market for the graphics card, but it was not as much in demand earlier as it is now. The recent increase in order for the graphics card is because of GPU mining!
What is GPU Mining?
To understand what is GPU mining, let’s take an example of a very popular cryptocurrency “Bitcoin.” All the transactions performed through bitcoin are recorded in a public ledger, sort of like a passbook. Public ledger means all the users have a public copy of this ledger instead of a single authorized individual. The end to end data is encrypted, and no user has access to the details of the transactions, due to encryption. All users get this ledger information in blocks each with a unique checksum hash, and each block combines to form a “blockchain” of the transaction. It is the job of the miner to apply some mathematical calculations using his/her hardware to check this checksum information.
This checksum information verification is a very resource intensive task, which is designed deliberately like this so that there would only be a finite number of Bitcoins. The miners who check this information are paid in Bitcoins, the more blocks they verify, the more they are paid. However, as it is a very intensive and challenging task, even verifying a single block takes a collective effort of other miners and a lot of resource usage.
How is this affecting the rise of GPU prices?
At first, users used the only CPU for mining; this method has become pretty redundant due to low-end returns and ineffectiveness. Then people started using GPU for extraction, this was better and more effective than using the only CPU. With the hiking prices of cryptocurrency, many people and even prominent organizations have started cryptocurrency mining, also going as far as creating workstations only for mining which run 24×7. Seeing the rise in bitcoin rates, this seems like an excellent way to make money. Due to this, the demands of graphics cards have increased even more. All high-end cards suffer from this price hike. But this hasn’t affected the lower and mid-range cards due to being less efficient in mining.
What are your thoughts on Bitcoin mining, please mention your views and feedback in the comments section down below. Stay tuned to TheMicrople for more tech updates.
Kuldeep Gautam loves to play video games and keep updated with the latest trends in technology. Other than that loves riding motorcycle, avid traveler and highly passionate about long trips. Click the author name for more articles from him.