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Over the past four weeks, the cryptocurrency markets have gained significant value and the cryptocurrency asset ethereum has gained over 40% over the past 30 days. The price of ether moving north has caused pressure on the graphics processing unit (GPU) market as ETH miners have become scarce.
Regional reports from China explain that GPU miners are becoming much more difficult to obtain since the price of ether has started to rise exponentially. Ethereum (ETH) hit an 11-month high on Monday, hitting $ 327 per coin.
Etherscan statistics show that the Ethereum network hashrate has increased by 25.7% since the first week of January 2020. Currently, as of July 28, the ETH hashrate is approximately 194,650 gigahash per second (GH / s).
Financial reporter Vincent He recently explained that he spoke to a Chinese GPU mining manufacturer who blamed the problems of semiconductor vendors like Nvidia.
The GPU rig manufacturer claims that Nvidia has also begun to discontinue production of its RTX 20 series GPU chips which has temporarily damaged the industry. Nvidia plans to release a next generation version of the RTX 30 series graphics cards in the near future.
“The GPU price increase was mainly caused by two chip suppliers,” the GPU mining manufacturer told the reporter. “Due to Covid-19, the order schedule has been reduced and production capacity has been limited. Furthermore, they knowingly limit excessive procurement of the mining industry to avoid impact on the subsequent consumer market. I think a new product will arrive after September “.
This isn’t the first time GPUs have become scarce thanks to Ethereum miners, and many people are hoping that Ethereum 2.0 will reduce GPU demand. Ethereum 2.0, often postponed, will add proof-of-stake (PoS) functionality to the security of the Ethereum network.
In March 2018, Jensen Huang, CEO of Nvidia, complained about Ethereum miners causing a shortage of GPUs around the world. Huang believes cryptocurrency networks benefit from high-performance distributed processing.
“At the highest level the way of thinking about this is due to the philosophy of cryptocurrency – which is actually about leveraging high-performance distributed computing – there are supercomputers in the hands of almost everyone in the world so that no singular force or entity that it can control the currency, ”Huang said at the time.
The co-founder of Nvidia further stated:
[Cryptocurrency] it’s none of our business. Gaming is growing and the workstation is growing thanks to ray tracing.
8btc columnist Vincent He explains that Chinese miners have switched from mining BTC to mining ETH to reap faster rewards. Supposedly, it can take 600 days to reap profits from BTC, but with ETH, it can be reduced to 200 days.
Additionally, Chinese ASIC manufacturers building SHA256 mining platforms as well as ETH GPUs have seen a massive wave of graphics processing unit platforms. Innosilicon sales director Wang Shenglin saw this trend in demand for GPUs.
“Ethereum continues to lead the cryptocurrency market and the current price adjustment for machines is relatively small. If the subsequent source of machine supply continues to shrink, we could adjust the price further, ”Wang Shenglin pointed out.
What do you think about the shortage of ether and GPU miners? Let us know what you think about this topic in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons, Etherscan
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