Cryptocurrency is a new buzzword in the online world that has been pushed into the mainstream over the past few years. Bitcoin and Dogecoin are skyrocketing in value and endorsed by famous figures like Elon Musk. It can be said that Crypto mining also comes with its unique set of complications.
According to research, in early 2018, the graphic processing unit market had a severe stock shortage. Coincidentally, the surge in the value of Bitcoin and Ether was also observed. This led NVidia, AMD, and Vega line-ups to sell their GPUs for almost twice their initial prices.
In recent years, the GPU market has undergone the resurgence of this phenomenon. The shortages are even more severe than before; coinciding with a leap in the value of cryptocurrencies, the demand for GPUs has spiked further up.
The question that lies here is why does the resurgence of these shortages affects the demand for GPUs? Well, the answer here lies in an integral part of the blockchain system, i.e., crypto mining.
When it comes to Cryptocurrency, mining is the process required to validate a transaction. It refers to the use of computer hardware to enhance the computational techniques of the blockchain network. The crypto miners are individuals and companies alike that form a distributed network of processing power utilizing the Graphics Processing Units as servers to mine the Cryptocurrency.
The GPUs transact the currency into blocks and then validate the transactions using the Secure Hash Rate to mine. The speed of the process is calculate using Hashes per Second or the Hash Rate.
Successful validation of the mining prices results in a small portion of the currency being rewarded to the miner as an incentive. Considering this, the higher the minor’s processing power, the higher the reward will be.
This is where a graphic processing unit plays a significant role. The GPUs are more efficient in completing the process faster than a regular central processing unit (CPU).
The demand for GPUs has been profitable for companies as they face a shortage. The CMP line-ups include three unique GPU models prevailing in the industry — NVidia CMP 90HX, the AMD Radeon RX 5700 XT, and NVidia CMP 170HX.
The new CMPs lack the display outputs and can better airflow while being used for the mining process. These processors also report a lower peak for core voltage and frequency, which increases their mining power efficiency.
NVidia reported that the minors contributed 100 to 300 million of the 500 billion US dollars revenue for mining Ethereum. However, the gaming industry takes the higher consumer base of the GPU, which has been highly displeased about the stock shortage of graphic cards.
This shortage is due to the world shutdown that happened due to the COVID 19 Virus. A crucial part of GPUs lacks, Silicon faces a decrease in manufacturing capabilities, leading to the surge of GPUs for CMPs. This shortage of GPUs is causing a significant spike in the ‘Crypto Mining Processors‘ cost.
NVidia and AMD Radeon are not the only players on the field. Companies such as Morgen rot, Bullet Render Farms, and Consensus play a significant role in providing solutions beyond the realm of Cryptocurrency.
In addition to that, Intel recently filed a patent for an SoC aiming to accelerate cryptocurrency mining while combatting its heavy energy utilization by optimizing its energy consumption. According to research, the collective energy consumed at crypto mining is equivalent to that of the entire nation.
The closest parallel to the bitcoin mining processor to the CMP is Bitmain’s ASIC Bitcoin miner. While CMP is a dedicated GPU for crypto mining, the ASIC miner is an optimized, integrated circuit often used by server farms and data centers around the globe.
Apart from Bitmain and Nvidia, the other primary crypto mining industry is Phenom, which recently launched its custom mining rigs under the subsidiary brand Exeton. Its N and A GPU models are gaming compatible which make an excellent choice for miners, but also for gamers.
The bottom line is, as the interest in the blockchain and cryptocurrency grows higher, so the number of miners and their requirement of highly optimized GPU systems to outrun the competition for mining rewards. As a result of this cycle, the growth of the mining stations and graphic cards has optimized the overall energy consumption and efficiency in kilowatt per hour. Therefore, to earn more rewards through mining, one needs to select a powerful GPU to increase the mining power efficiency
GIGABYTE AORUS GeForce RTX™ 4090 Xtreme Waterforce 24G
$2,998.00
Mellanox MCX653106A-ECAT - MCX653105A-ECAT - ConnectX-6 VPI 100GbE
$689.00 – $884.00
Ellipal Mnemonic Metal Crypto Wallet
$69.00
B300W - 600W - 1000W Portable Solar Electricity Power Station
$322.00 – $840.00
MicroBT Whatsminer M56S Hydro 212TH/s 5550W
$5,745.00
Can it mine doge coin
Very happy with purchase. Great support from start of order to installation.
Excellent service, and fast shipping!
This is my first asic purchase. I'm a big fan of the Hash rate compared to the wattage, the size…
This is my first asic purchase. I'm a big fan of the Hash rate compared to the wattage, the size…