Guest article
Cryptocurrencies may have been going through a particularly turbulent time since the start of 2018 but they’ve proven they’re here to stay.
Even though the price is crashing, a recovery is expected once regulation has caught up to technology and everyone knows the set of rules they need to play by. At the moment, there’s a lot of speculation in the market, and that’s why there are big fluctuations in price.
Gamers were among first to buy Bitcoin as it started out as a currency on gaming platforms. Gamers are generally savvy when it comes to new technologies. That is why cryptocurrency has been so popular with this community. It is now costing them extra money though – and below are the reasons why.
1. Cryptocurrency mining
There are many areas that cryptocurrencies are affecting, and one which will become more prevalent in the future is mining. This is a process that uses a network of computers to solve algorithms which give the ultra-secure automated network ‘The Blockchain’.
The computers that are connected to this network get a reward in the crypto that they choose to mine. This takes a lot of computing power and needs top of the range graphics cards to get the most out of the process.
2. Cryptocurrency mining demand
The popularity of mining cryptocurrencies is increasing exponentially and even though there’s a tiny amount of money produced, done on a mass scale it can produce great returns.
It has led to over-demand for high-end graphics cards, which have seen prices skyrocket due to this.
3. Graphics card costs
One of the most popular graphics cards gamers like to use is the GeForce GTX 1070. Before the cryptocurrency mining book prices were in the region of $380 and now most outlets are selling them for over $700 due to demand and a shortage in stock. That is over 80% more than previous prices and it is hitting gamers hard in the pockets.
4. Custom built PCs
For serious gamers who like to build their own PCs the cost of the graphics cards is making this an unforeseeable option. All of the most popular cards such as the GTX 1070 and GTX 1060 have nearly doubled in price. The major graphics cards companies such as Nvidia are trying to get retailers to make gamers their priority, but due to the huge returns they can get from miners, most are ignoring this advice.
A few retailers have stayed loyal to gamers by limiting miners purchasing large stacks. Other companies such as Micro Center are offering PC gamers a discount when they buy it with other components.
5. Graphics card shortages worldwide
The problem is not just isolated to one region of the world, as globally there is a major shortage of high-end graphics cards. Until this demand is sated, the prices will continue to rise and gamers will suffer at the hands of crypto miners.
Conclusion
Hopefully, due to the demand for high-end graphics cards, it will push developers to advance the technology further. There is a lot of money to be made by combining the two processes.
Maybe in the future, gamers will be able to play games while mining enough crypto at the same time in order to do it full-time. But until we get to that point, gamers are going to have to bear the brunt of the Blockchain and cryptocurrency mining cost.
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