As cryptocurrency mining falls, GPU prices are dropping faster

The price of GPU products – previously being snapped up in large quantities by cryptocurrency miners – has started to tumble…

One of the ramifications of the falling price of cryptocurrencies over the past two or three months has been a slowdown in the number of people undertaking crypto mining. When prices of crypto skyrocketed at the end of 2017 and early in 2018, there was a subsequent spike in demand for GPU products from the likes of AMD and Nvidia, as crypto miners took advantage of the crypto value boom. With that came a rise in the price of said graphics products, much to the chagrin of people who just wanted to buy the GPU boards to play PC games with.

However, the price of high end GPUs has now started to fall, with no obvious sign that crypto prices are going to reach the levels we saw at the start of the year anytime soon. As such, demand for GPUs has fallen, supply has increased, and the price has been dropping.

Furthermore, cryptocurrency miners are said to be selling their boards on the second hand market in increasing numbers, further dampening demand for new GPUs.

Computerworld has been reporting price falls of anywhere up to 30% over the past months, and a drop of board shipments targeting cryptocurrency miners by some 55% in the last six months.

What impact that will have on the bottom line for firms such as AMD and Nvidia remains to be seen. But with concerns expressed too in recent months about the environmental impact of high powered computer rigs mining crypto, news of the decline is likely to meet a mixed response.