$3M Bought By Cryptocurrency Miners

Last year’s cryptocurrency mining ‘boom’ led to a scarcity within the GPU market. Recent information displays crypto miners essentially bought three million GPUs last year, worth approximately $776 million.

This is according to a recent report put out by Jon Peddie Research (JPR) that found AMD is developing as the main virtual money ‘mining rush’ patron over Nvidia. The numbers have a foremost influence on the market as a whole and have even earned the anger of gamers, while chip manufacturers have noticed the value of their shares rise.

Dr. Jon Peddie, president of Jon Peddie Research, stated:

“Gaming has been and will continue to be the primary driver for GPU sales, augmented by the demand from cryptocurrency miners. We expect demand to slacken from the miners as margins drop in response increasingly utilities costs and supply and demand forces that drive up AIB prices.”

AMD’s market share apparently improved by around 8.1%, while Nvidia’s share went down by 6%. Last year, especially, the GPU market as a whole, “swandived” 4.8%. The fondness for AMD over Nvidia could be justified by the lower price tag in its GPUs.

Nvidia’s CEO has lately stated that cryptocurrencies are here to stay, and the company has ranked gamers over cryptocurrency miners in the middle of the graphics card shortage.

Nvidia’s move, however, isn’t believed to have been the reason why AMD’s sales went up, but rather, it is the potential ROI (return on investment) cryptocurrency miners could get hold of by buying cheaper graphics cards from AMD.

In 2018, both companies entertained the idea of producing cheaper digital currency mining GPUs, although the gaming market is still their primary concern. JTR’s analysis notes that crypto-currency miners can be an eye-catching audience for chip manufacturers, which translates into values aren’t likely going to drop anytime soon.

As a solution, Dr. Peddie proposes gamers use their GPUs to generate cryptocurrencies when they aren’t using them for gaming. This, he recommends, will help them pay premiums and help them evade getting priced out of the GPU market.