GPU Market Paradox
April 10, 2018
It’s common knowledge that cryptocurrency rush last year has produced an immense impact over graphic card market. Analysis shows that growing prices for ten largest cryptocurrencies lead to dramatic GPU price increase at the German online market. Remarkable enough, regardless of the recent collapse of the market and reduction in trading volumes graphis card price tier keeps on rising.
Crypto miners buy up lots of medium- and high-class GPUs to maintain profitability at highly competitive market. As early as half a year ago Nvidia Geforce GTX 1070 was available at just 410 euro. Now most of GTX 1070 models cost approximately 600 euro. Average video card price was above the mean last summer already, but with a sudden surge of Bitcoin price we witnessed the second wave of price hikes for GPU.
The trend was caused by growing demand in altcoins like Ethereum and Monero. This is the problem that influences price formation globally and GPU sellers are unlikely to handle this.
What can right the ship?
- GPU manufacturers may try to keep the pace and develop more industry-oriented intellectual graphic processors.
- Sudden and continuous devaluation of cryptocurrencies may result in flooding the market with cheap second-hand cards due to unprofitable mining rigs.
- Increased activity of regulators and loss of confidence in cryptocurrencies for high price fluctuations may produce similar effect.