Hello my friends. I am not here to review a product today. I just wanted to shed some light on a common phenomenon currently facing flight simulation enthusiasts. We are currently undergoing the largest shortage of high-end GPUs in history. Don’t fight it, just have patience. This will pass.
The last thing I want to do is pretend to be an expert in cryptocurrency mining; because I am definitely not. But I have been following this “market” very closely and my personal opinion is that the bubble is out of control. But the point of this article is to focus on the adverse effects this had on the GPU market.
In short, cryptocurrencies are “mined” by solving complex formulas and performing a lot of hardware-intensive operations. Think of it as running Prime95 for a living. This trend started a long time ago with Bitcoin. However, Bitcoin is no longer profitable in consumer graphics cards because people have built sophisticated custom ASIC-based mining equipment that’s far more power-efficient. But the mining of another cryptocurrency known as Ethereum is still practical with consumer GPUs as long as they have two gigabytes of memory or more. In short, miners are building rigs with 8 or more high-end NVIDIA cards to profit on the mega-rally in the price of Ethereum. Just look at the chart below: 220% rise in 3 months is not too bad.
But it is my humble opinion that these newcomers to the mining game are too late and simply following historical returns hoping that the euphoria will continue forever. There is no doubt that mining has been profitable in the past…. But going forward, I am not too sure that these prices are sustainable. Miners are not only emptying the shelves of retailers but are also paying huge premiums for used high-end GPUs. I am not speculating here: I have my PC specs in my YouTube stream and someone contacted me privately to offer me over USD 23,000 for my 4 Titan Pascal GPUs. That’s when I realized that we may be reaching a tipping point and wanted to spread the word to our readers.
Just take a look at an Ethereum mining rig and you’ll understand where the shortage is coming from. What’s more, keep in mind those large manufacturers like NVIDIA and AMD lack agility in their production schedules. So it becomes virtually impossible to react to a huge spike in demand. After having shared with you my “insight” on the current shortage of GPUs, I am considering actually selling my 4 Titan Pascal GPUs for a ridiculous profit and buying the next architecture when it comes out at retail prices. I think by then, cryptocurrency miners will become just a huge dumpster of abused video cards.