Creating GPU Shortage Is Ethereum Price As Some Manufacturers Blame Nvidia
Here we explain why miners are causing GPU shortage. Why are miners switching to ETH? For more read on.
Ethereum And GPU Shortage
Here is a short article on the Ethereum and its prices influencing the GPU market used for cryptocurrency mining. It is surely a step toward popularising the use of these GPUs as there is also a scarcity of those miners. While ETH mining is surely one step ahead the prices may then become a hurdle in its path to popularising mining.
Cryptocurrency markets during the last four weeks have gathered significant value along with the crypto asset Ethereum gaining over 40% during the last 30-days. Causing a strain on the graphics processing unit, the price of ether is moving northbound as the ETH miners have become scarce.
Stemming from China, regional reports explain that GPU miners become to be much harder to obtain as the price of ether has now started rising exponentially as the Ethereum touches an 11-month high on Monday, touching $ 327 per coin.
Ethereum’s network hashrate according to statistics from Etherscan has increased by 25.7% since the first week in January 2020 whereas on July 28, currently, the ETH hashrate comes to be roughly 194,650 gigahash per second.
Why Are They Accusing Nvidia?
Speaking with a Chinese GPU mining manufacturer who blamed the problems on semiconductor suppliers like Nvidia, the financial columnist Vincent He further explains all about it.
Nvidia, according to the GPU rig manufacturer has thereafter started to stop the production of the RTX 20 series GPU chips that have temporarily hurt the industry. With plans to release a next-generation version of the RTX 30 series graphics card shortly comes Nvidia.
Telling the columnist, the GPU mining manufacturer opined that the price increase of the GPU was mainly due to two chip suppliers whereas due to Covid-19, the order plan thereby reduces and the production capacity was limited. Consciously limiting the mining industry’s excessive procurement moreover avoided the impact on the subsequent consumer market thinking that the new product is coming after September.
Thanks to Ethereum miners, this is not the first time GPUs have become scarce as many people hope that Ethereum 2.0 lessens the demand for GPUs as the oft-postponed Ethereum 2.0 adds proof-of-stake capabilities to the Ethereum network security.
What Do The Experts Have To Say?
The CEO of Nvidia, Jensen Huang complained in March 2018 that it is the Ethereum miners causing a shortage of GPUs worldwide believing that crypto asset networks take the advantage of distributed high-performance computing.
Furthermore, Huang said at the time that because of the philosophy of cryptocurrency, at the highest level the way to think about is that really taking advantage of distributed high-performance computing where supercomputers are in the hands of almost everybody in the world and thereby no singular force or entity can control the currency.
Moreover, the Nvidia co-founder stated that as cryptocurrency doesn’t come as their business, and gaming is growing and workstation is growing because of ray tracing.
Detailing that Chinese miners have switched from mining BTC to mining ETH to gather faster rewards, 8btc columnist, Vincent He alleges that it takes 600 days to reap profits from BTC whereas with ETH it is cut down to 200 days.
Chinese ASIC manufacturers have moreover built SHA256 mining rigs whereas also ETH GPUs that have seen the massive surge toward rigs with graphics processing units and seeing this tending demand toward GPUs is the sales director of Innosilicon, Wang Shenglin.
Finally, as Wang Shenglin stressed, Ethereum now continues to lead the crypto market with the current price adjustment of the machines that are relatively small as the subsequent source of machine supply continues to shrink as they may further adjust the price.
Wrapping Up The Discussion
With a greater number of miners competing for ETH, the GPU manufacturers are finding themselves in darker waters. So, this is where the tech world is headed in case you need the best of the components to add to the mining rigs. As crypto assets are the promise of future and the focus is shifting from bitcoin to ETH, it is certainly one of the first and foremost features to be taken care of.
No matter what the future of ETH is, there is still more time left to get the best from the crypto world. So, let's keep the fingers crossed watching the movement of the crypto and constantly evolve from the best to the latest. Now or never the world is sure to witness a boom in the crypto.