What happens to GPUs in 2021?
Miners began buying graphic processing units in droves in 2017 to set up mining farms and earn cryptocurrencies. Graphics processor prices have risen in this regard, and there is a scarcity of them in retailers. From the mining perspective, people have a lot of questions, such as if it is profitable in 2021, how much money you have to invest or what equipment to purchase, and whether or not the high-priced video cards will not fail. Also, is it efficient to buy a GPU used after mining cryptocurrency? In this article, you will get the answers to these questions and learn what caused the shortage of GPUs.
First of all, let’s refresh our memory with mining technological aspects. Mining crypto assets enables the use of computer technology, particularly graphics processing units (GPU). Miners build new structures on the blockchain, such as blocks of information, by performing mathematical calculations and receiving cryptocurrency rewards. The complexity of calculations is constantly increasing as more blocks are added to the chain. As a result, the system requires increasing amounts of computer power, forcing miners to improve their hardware. There are also certain illusions surrounding GPUs, such as the fact that mining is bad for video cards and that buying old GPUs is risky. If we are talking about infrastructure with well-organized cooling and the miner making particular steps to optimize power usage, the video card resource is unlikely to be in danger.
Furthermore, it is exceedingly difficult to anticipate mining income since several factors influence it: the cost, power of the equipment, the price of the cryptocurrency, the reward of each block, hash rate, and the cost of running the equipment. Nevertheless, cryptocurrencies are firmly embedded in the modern world, some states have recognized them at the state level, and their capitalization volumes are continually increasing (e.g. bitcoin market cap has surpassed $862 billion). For sure, the crypto industry has its disadvantages such as market fluctuations, instability, and whale speculations. Thus, you should consider this before beginning to mine crypto and make your decision based only on your feelings and willingness.
In general, production all around the world became much more interdependent. Under some conditions, the failure of a significant factory to produce supplies required by a corporation can have far-reaching consequences for an industry or the economy as a whole. During the Covid-19 pandemic, most suppliers ceased operations, resulting in a manufacturing collapse. GPU manufacturing is an extremely sophisticated process, which is why just a few businesses are involved in it. In addition to the worldwide pandemic in 2019–2020, bitcoin and the entire crypto market had a dramatic increase at the beginning of 2021, contributing to the scarcity.
However, there is a severe scarcity of a wide range of semiconductor items on the market, which is affecting multiple important segments at the same time. The ongoing pandemic, natural calamities, and random accidents are worsening the problem. There is also a significant growth in demand in some segments, which only adds to the shortages. Thus, many factors cause GPUs scarcity, including a low percentage of decent GPU yields in production, a lack of components and memory, and, of course, strong demand.
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Valentina BEREZA, Team bit4you