Ethereum mining has become very attractive, which helps the sales of graphics cards AMD and NVIDIA explode. The mining of a cryptocurrency like Bitcoin is an inseparable part of their functioning and their now very profitable existence.
This practice aims to exploit computers’ computing power to process transactions, secure the network and allow all users of the system to remain synchronized.
The difficulty of mining is accentuated as the course of mined cryptocurrency soars. After Bitcoin, it’s Ethereum’s turn to gain some success among cryptocurrency miners.
Indeed, after taking advantage of sales of graphics processors for Bitcoin mining, chip suppliers like AMD and NVIDIA are now seeing an explosion in price because of the extraction of Ether.
According to Fortune, investment bank Morgan Stanley evokes this subject through a note dated January 2018 by analyst Joseph Moore.
Due to the current price, Ethereum mining has become much more profitable. The profitability of the mining of the Ethereum has in fact increased by more than 200% since October 2017, even if its course fluctuates around 1000 dollars. This context encourages cryptocurrency experts to buy graphics cards with GPUs signed NVIDIA and AMD.
According to Morgan Stanley estimates, miners generate a profit of $1.76 per day per GPU owned. That is 56 cents more than in October 2017. This corresponds to the performance achieved with an AMD Radeon 480 graphics card and a bill of $0.7 per day (per GPU).
The leading global financial services firm which provides investment banking, securities, wealth management and investment management services, believes that NVIDIA and AMD should automatically see their business grow in the first half of 2018.
The increased demand for GPUs, combined with the exploitation of cryptocurrencies, will lead to other related impacts.
“Sequential growth in Ethereum, combined with improvement in pricing across the board, would certainly drive substantial upside to the quarter, even higher than whispers,” wrote Morgan Stanley analyst Joseph Moore.
“However, we see this masking some weakness in the uptake of desktop and notebook processors, and certainly shortage in AMD graphics cards is limiting traction in the longer-lived gaming business.”
Moore noted that while AMD has been leading in the Ether-fueled demand the shortage of supply has been more “intense”, guiding businesses NVIDIA’s way.
Traditional users of graphics chips, PC game enthusiasts have already flooded social networks with thousands of messages to display their anger. They denounce the high prices of graphics cards. This price increase, coupled with a potential shortage, could have a longer-term impact on AMD’s and NVIDIA’s preferred market: PCs.
The volatility of the prices of the cryptocurrencies induces an agility of the power required for the mining operation.
This is not the first time that the craze for crypto-currencies causes shortages of graphics cards. This type of phenomenon was observed in June 2017, but also during the Bitcoin boom in the course of 2013.