Cryptocurrencies are among the top consumers of graphic cards, and the craving to play in a crypto casino is contributing to the ongoing shortage of graphic cards. Crypto miners were using high-performance graphics cards for mining Bitcoin, Ethereum, and other cryptocurrencies. The persistent demand for graphics cards has resulted in a shortage in the market, and prices have increased manifold.
The rise of live casinos has also increased demand for high-performance graphics cards to support streaming high-quality video. Live casinos use live video streaming to allow users to interact with real dealers and other players in real-time, creating a more immersive experience.
The cryptocurrency market has experienced a decline of around 66% in its total market capitalization since reaching its peak in November 2021. The price fall is attributed to geopolitical tensions, rising interest rates, and inflation discouraging investors from taking risks with cryptocurrencies.
As a result, digital tokens like Bitcoin have also plummeted, impacting the prices of equipment used in the digital currency industry, such as graphics cards. AMD and NVIDIA, two major players in the graphics card market, have witnessed a significant drop in GPU prices, with AMD’s current-gen GPUs selling for 92% of MSRP, a 10-point drop in less than a month.
Yet, it’s not simply due to the cryptocurrency frenzy. The present market deficit of graphics cards is caused by several causes.
First, more individuals are playing video games than ever before, which has significantly boosted the gaming industry’s growth in recent years. As more new games are developed with increasingly demanding graphics specifications, this rise has increased the need for graphics cards.
Second, the manufacture of graphics cards has been hampered by semiconductor scarcity. The automobile industry has been impacted by the lack of semiconductors, which has also caused delays in manufacturing graphics cards.
Finally, the rise of non-fungible tokens (NFTs) has also contributed to the shortage of graphics cards. NFTs are digital assets that are bought and sold using cryptocurrency. NFTs require high-performance graphics cards for creation and mining, leading to a surge in demand for graphics cards.
The need for graphics cards has increased prices, making it difficult for consumers to purchase the cards they need. Graphics card manufacturers have struggled to keep up with demand, leading to long wait times for customers who want to buy new graphics cards.
Manufacturers of graphics cards have increased output and are investing in new manufacturing facilities to meet the shortfall. It will take some time before we see an increase in supply, though, as it takes time to construct new facilities and hire staff.
Moreover, several manufacturers have released new graphics cards made exclusively for mining cryptocurrencies. These cards are more cost-effective for cryptocurrency miners since they are more affordable than conventional graphics cards designed for mining.
Summary
The early lack of graphics cards may have been exacerbated by the crypto frenzy, but other causes are responsible for the present deficit. The proliferation of NFTs and live casinos, the increase in the gambling sector, the lack of semiconductors, and the tensions worldwide have all contributed to the current requirement.
It will take some time before we see an increase in supplies, but graphics card makers are attempting to improve production and alleviate the deficit. Customers will still have difficulty finding the inexpensive graphics cards they require in the interim.
