The Cryptocurrency is a type of monetary value that lacks a centralized system. Instead of being a physical piece of currency it is digitally based instead. The drawback of digital currency is that their value can fluctuate drastically depending on the supply and demand for such currency. In order to obtain cryptocurrencies, individuals must exchange their physical currency for bitcoin. An alternative method of obtaining these cryptocurrencies is a tactic called bit-mining. Bit-mining requires a computer to allocate un-necessary resources to solve algorithms that can generate additional cryptocurrency, once the algorithm is solved bitcoins are awarded to the individual that solves the problem first. In late 2017 the most popular cryptocurrency Bitcoin, saw an immense spike of around one thousand dollars to seventeen thousand dollars in less than a year. It increased even more towards twenty five thousand dollars in early 2018. This large spike fueled a frenzy of obtaining these valuable currencies throughout the world. The issue toward the flood of bitmining is the requirement for higher grade graphics processing units or GPUs. The price of these unites can range from two hundred and fifty dollars all the way up to one thousand dollars depending on the specific graphical processor. Because bit mining is more gpu intensive, the algorithm requires a stronger graphics card to run the algorithm more effectively. The problem to this is that countless hordes of people have gone to all of the electronics stores as well as the online stores in order to obtain the required parts necessary to build these mining rigs. As these graphics cards were being purchased the supply of graphics cards were dwindling throughout the world, the prices of individual cards gradually increased above MSRP then rapidly. The mass inflation of prices made it harder and harder to obtain GPUs for the PC community. Before the spike of cryptocurrencies the average cost for the mid-tier GTX-1060 was around two hundred and seventy dollars, at the time of the spike they were nearly four hundred and twenty dollars. The prices for higher grade graphics cards such as the GTX 1070 and 1080 are at ridiculous pricing points for the meantime. Fake graphics cards have been leaking into the marketplace recently. With these cards proclaiming that they were legitimate, they imitate the designs of popular brands such as Zotac, MSI, Gigabyte, EVGA, ASUS, and Nvidia. These fake cards are often obsolete cards that have been re-imaged to mimic the statistics of legitimate cards. However, there is still hope, recently the surge for cryptocurrencies has settled down for the moment being. The value of Bitcoin has dropped from around twenty thousand dollars to about six thousand dollars, but it has gone back up towards nine thousand dollars. The promising news is that the demand for cryptocurrencies have recently died down from the past chaotic months. An influx of used graphics cards have also been witnessed on online retail stores such as Amazon, Newegg, TigerDirect and others. As well as auction sites such as Ebay. Because of these recent events these legitimate graphics cards have began to experience a gradual decline in their price range. With these prospects in mind, by the end of 2018 we will hopefully observe the cost of these graphics cards return back to their original MSRP.
Posted by Robert J.