Cryptocurrency Crash Causing Reduction in GPU Price, as Mining Profits Also Declines

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Video game players are happy, while investors in cryptocurrency are anxious to know when crypto will seize to plummet. The crypto market crash has caused the price of GPUs to gradually reduce.

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GPU has recorded a fifteen percent decrease in price during last month: May. A personal Computer news and review webpage: Tom’s Hardware disclosed yesterday that GPU (Graphic Processing Unit) price has been recording ten to fifteen percent reduction in price months ago. This development is attributed to the Bitcoin and Ethereum crashes.

It was said that the crashes in cryptocurrencies price have reduced how profitable cryptocurrency mining is. As a result, GPU: a key component used in mining these Cryptos has been suffering the effect. Perhaps, this is because fewer people are mining or miners are trying to cut their running costs, due to low profitability.

Cryptocurrency Crash Causing Reduction In GPU Price, as Mining Profits also Declines

Aditional Fact About GPU
Except for Bitcoin which is mined mostly using specialized ASIC hardware, the Proof of work for Cryptos such as Zecash, Monero, Dogecoin, and Ethereum can be mined using the GPU cards.

In February 2021 Nvidia announced that it will release a GPU dedicated to cryptocurrency mining. Nvidia made this announcement to discourage miners from using its GPU for mining activities. This is a discouragement to miners because it implies that Nvidia will begin limiting its GPUs.

However, the announced Nvidia intention wasn’t effective in deterring minors from using their GPU. This is essential because miners came up with a way of still making use of their GPU. Consequently, this resulted in only a minor decrease in revenue generated by Nvidia in 2022.

The use of GPU cards for mining consumes a lot of energy, and as we know that most energy generation processes involve the release of poisonous gasses into the environment. This made the use of GPUs for mining non-environmental friendly.

The planned Ethereum move to proof of stake algorithm and merge is expected to be more environmentally friendly. This will also reduce the demand for GPU cards.

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