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Cryptocurrency Miners Purchased 3 Million Graphics Cards Last Year

Cryptocurrency Miners Purchased 3 Million Graphics Cards Last Year

Increased interest in crypto mining is likely to continue hence further pushing up the demand. AMD market share rose as other firms experienced slinkage in their markets shares. The research confirms recent reports about shortage of GPUs even for other industries.

Interestingly, cryptocurrencies mining led the purchase of around three million Graphics Processing Units (GPUs) in 2017, according to JPR research.

The sales reached around $776 million in total. However, there was a 1.5 percent decrease in shipments in the fourth quarter of last year and a 4.8 percent year-on-year decrease.

This is even as cryptocurrency prices skyrocketed last year and their popularity increased. The research firm says AMD market share increasing by 8.1 percent mainly because their GPUs were more suited to solving complex equations in the mining activity. In comparison, NVIDIA lost 6 percent and Intel 2 percent of their market share.

The expected increase in demand

The interest in GPUs is likely to continue increasing even as mining activity expected to increase this year. For instance, Bitcoin price is to be considering high compared to the price levels in February last year. It means the GPU and add-in board (AIB) markets will continue to expand because they are also in demand by other operations.

More firms continue to set up mining operations, and the existing ones are expanding operations. Although GPUs are not made for mining cryptocurrencies, they are the closest option for people and more affordable options.

The research firm also confirms the recent news of a shortage of GPUs as a result of crypto mining operations. For instance, some other industries say the prices are likely to go up due to this shortage. One major area where GPUs are demanding highly is gaming markets where NVIDIA is a major player in producing the GPUs. Academic institutions and researchers are also reporting a shortage in GPUs.

Dr. Jon Peddie, President of Jon Peddie Research, said demand of GPUs in the crypto mining might go down in response to the increasing utilities cost and supply and demand forces that will lead to increased AIB prices.

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Author

David

David Kariuki is a journalist who has a wide range of experience reporting about modern technology solutions including cryptocurrencies. A graduate of Kenya's Moi University, he also writes for Hypergrid Business, Cryptomorrow, and Cleanleap, and has previously worked for Resources Quarterly and Construction Review magazines.