Gamers can once again blame Bitcoin miners for GPU shortage
While many gamers have so far been unable to upgrade their GPUs to the latest flagship graphics cards from Nvidia due to shortages – a situation that even forced the company’s CEO, Jensen Huang, to make a public apology – it seems like a bitcoin -Miner succeeded in backing up 78 GeForce RTX 3080.
A photo that is widely shared on social media shows the Berta 2 mining rig created by Simon Byrne with its lighting. colorful RGB backlight according to reports from VideoCardz and Tech ARP.
Simon Byrnes Berta 2 mining rig. Photo credit: Tech ARP.
The mining rig can reportedly generate approximately $ 20,000 in revenue each month in Ethereum currency. Based on current Ethereum prices, each graphics card can generate roughly $ 6.35 to $ 9.15 per day, including electricity costs, according to Minerstat. Tech ARP estimates that Byrne’s rig will cost $ 1,444 a month to power his rig – excluding cooling costs – based on tariffs in Las Vegas, where he lives. Overall, Byrne’s system can make between $ 15,000 and $ 21,000 on average each month.
Still, 78 units of Nvidia’s flagship GeForce RTX 3080 graphics cards cost a lot, and the rig itself is estimated to be worth $ 100,000. Each graphics card starts at $ 699, and custom variants cost more. This means it will take, on average, about half a year for Byrne to break even and generate revenue.
Given the fluctuating exchange rate for cryptocurrency, the return on investment could take significantly longer than half a year.
Are Cryptocurrency Miners Responsible for the Shortage?
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Byrne – and Bitcoin miner according to the deputy – alone may not be the only reason GPUs are in high demand and in short supply. Nvidia executives have spearheaded the unprecedented demand due to situations caused by the ongoing health pandemic forcing more people to work, study and entertain at home. To this end, they are turning to technologies like more powerful processors and graphics cards to increase their productivity and entertainment needs.
Nvidia’s theory and supply shortage were shared by competitors like AMD, who also had shortages in both the recently launched Ryzen processors and Radeon graphics cards. Despite retailers’ best attempts to replenish Nvidia GPUs as well as AMD CPUs and GPUs, these PC parts are selling out fast. When the cards were initially launched, scalpers who used bots were accused of wiping out the first stacks of inventory.
Although AMD has been less explicit about the cause of the bottlenecks, Colette Kress, Nvidia’s chief financial officer, recently said that bottlenecks in the company’s supply chain – which are widely believed to be underpowered by GDDR6 memory – also become bottlenecks contribute to graphics cards.
Although the Enthusiast-class RTX 3080 and RTX 3090 are based on more advanced GDDR6X memory, the other cards in Nvidia’s RTX 3000 series and the most recent Radeon cards from AMD use the GDDR6 standard. Kress speculated that the shortage will continue until early this year.
Cryptocurrency miners are not without fault. Prior to the introduction of AMD’s Radeon RX 6000 series and Nvidia’s GeForce RTX 3000 series, Bitcoin miners were widely accused of wiping out GPU consumables. The lack angered gamers and devoted Nvidia fans so much that Huang had to raise the issue during a media session at the company’s GTC conference in 2018. He stated that cryptocurrency mining “is not our business” while also stating that Nvidia is standing with the players.
“We are not involved in Bitcoin at all,” said Huang. “Bitcoin [mining] is now mostly performed by ASICs. “
Although Huang distanced himself from controversy, he didn’t shy away from promoting the GPU’s strength over ASICs or even the CPU.
“The reason the GPU is so popular with Ethereum is because the GPU is the largest distributed supercomputer in the world,” he said. “It’s the only supercomputer that is literally in everyone’s hands. As a result, no single company can control the currency. “
Ultimately, the demand for GPUs increases because they make money. For creatives and gamers, GPUs are an integral tool, while Bitcoin miners find that the investment often pays off.