As cryptominers shift their attention away from GPUs, graphics cards prices may plummet as shipments are expected drop by at much as 40% in the upcoming weeks.
I have no doubt that mining demand for GPUs will at some point plummet. There are too many currencies, and the shakeout will come. The few that survive that, plus the change in investor mindset toward caution, won't be profitable to mine with consumer gear for very long. (The Bitcoin crowd knows why.) I hope this story is correct, but I'm not confident that the good news will come so quickly. We shall see.
Here is a fascinating talk about blockchain and crypto:
https://www.youtube.com/wat... The fun starts at 2:30.
Why didn't supply increase to meet demand? I understand it doesn't happen overnight, but they've been short for a long time now.
Because the miners took everything the could.
Supply meets demand, by increasing price...
Why over produce to keep price down, when you could keep production the same and prices skyrocket AND people were still buying up everything in sight?
The other side of that was, if they ramp up production, then demand falls, they were left with a bunch of cards they couldn't sell.
They banked on people paying higher prices, it paid of. Big time!
More than likely Nvidia and AMD knew this would be a short term issue. Ramping up supply would create a massive glut once demand normalized.
Firstly, it takes resources to increase supply. Acquiring a larger number of rare-earth and precious metals being only a small part of the problem. Secondly, you don't fight drug addiction by allowing more drugs on the streets, so why would manufacturing more GPUs stop cryptowhores from sucking up every product? Lastly, regardless of the aforementioned, for some stupid reason, meticulously limiting supply always creates more profits.
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