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Why GPUs are more Expensive?

Why GPUs are more Expensive?

I am sure you guys are fully aware of how crazy graphics card prices are right now. Even the lower to your graphics cards are taking a huge hit. But why? So today in this article, we'll be talking about why graphics card prices are so incredibly high, even for the lower-tier graphics cards. And this is a discussion article.

We started out with the last year's  RTX30 series graphics cards. MSRP price is being ruined by scalpers. And only a few months later, January of 2021 starts out with cards like GTX 1650 and 1650 supers being doubled in price. What the heck. Now the budget gamers are suffering just as much as the people searching for those 30 series cards and it sucks. 

Take a look for yourself my last $700 PC, which was $700 when I bought all the parts for their MSRP Prices got hiked up to being a now and around 900 to $1000 PC solely because of the graphics card cost.

The tiny piece of good news. I guess, though it seems like graphics cards are the only parts with this extreme inflation at the moment, at least when it comes to stuff that isn't brand new.

If we remember back to the beginning of 2018, both graphics cards and RAM had prices that were inflated through the roof. For example, to get 16 gigabytes of 2400 megahertz RAM and an Rx 580 it would cost you around $700 just for that two parts. $700.

The 580 was going for $500 because crypto miners were putting them out of stock everywhere and 16 gigabytes of 2400 megahertz RAM could be found for 196 ish dollars. Similarly, for various supply and demand reasons.

Anyway, back to the present time, it's ridiculous. No matter how you look at it, we're seeing what looks like to be a total repeat of 2018 and those outrageous GPU prices. So what's the reason for the absurd prices this time around? Well, if you're unaware, Bitcoin is going crazy in a good way. And let me explain why that has any sort of relevance to the price of a graphics card.

Two completely different things I know. So let's get down to the bottom of it, starting with explaining Bitcoin mining in a nutshell. Bitcoin and other cryptocurrencies require very complicated computational puzzles to be solved in order to verify transactions made across the world. There is no centralized, massive machine and a huge server building that does all of this instantaneously.

These mathematical problems are solved everywhere by people who decide to crypto mine. Now let's bring GPS into the picture. GPS are a very popular, very easy-to-access choice for these crypto miners to mine these Bitcoins, and they buy the graphics cards in bulk. It's not just one or two that get the job done. It's an investment.

The more money you put in, the more you'll get out, like buying shares of a company. And why GPS Well, GPS are specifically designed to do very complex math problems to get a nice picture on your screen virtually instantaneously, whether you're playing a video game or rendering something.

Also, GPS can execute far more bit instructions per clock versus a CPU, which used to be the standard component used for crypto mining. 

One last detail worth mentioning about graphics processing units is that their Alia's arithmetic logic Units can crunch through way more operations at once, versus a CPU bottom line is crypto miners seek machines that do fast math, and what is a crypto miners incentive to go and crypto mine well specifically with the popular Bitcoin.

They get compensated with a Bitcoin whenever they add a new block to the Blockchain. The Blockchain is a database that contains every single Bitcoin transaction that has ever occurred. In a block is a piece of that Blockchain, so ensure you do the math and solve problems for Bitcoin.

And once you do a specific amount of math and complete a block you get paid for, it makes sense with all that in mind, The story is, a guy wants to make some passive income.

So he goes ahead and invests a couple $1000 into dozens of graphics cards, sets them all up in his mining rig, and starts the process. Tons of people are doing this right now, and the more popular and pricey Bitcoin and other cryptocurrencies get, the more this will happen.

So with all that being said, should you go ahead and buy a graphics card still, if you have the money? Yes, After all, time is money, so waiting 1 to 2 months won't really be the move. But if you don't, that's all right. Like I just said, 1 to 2 months is my personal prediction for when we'll see these prices go back to normal.

And hey, that's a conservative prediction. Maybe they'll go down even sooner than that. It's all for you guys. So that will wrap it up for today's quick discussion article. if you liked my job them make sure to comment below.

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