Surging Demand for GPUs in Cryptocurrency Mining
AMD recently announced plans to increase graphics card production amid a global shortage fueled by cryptocurrency mining. The company reported Q4 2017 revenues of $1.48 billion**, marking a **34% year-over-year growth**, with its Computing and Graphics division contributing **$958 million—a 60% increase from Q4 2016.
👉 How cryptocurrency mining impacts GPU availability
The GPU Shortage Crisis
Both AMD and Nvidia face severe graphics card shortages, driven by miners bulk-purchasing GPUs. Over the past year, Nvidia card prices skyrocketed:
- GeForce GTX 1050 Ti: +27%
- GeForce GTX 1060 3GB: +86%
- GeForce GTX 1060 6GB: +89%
- GeForce GTX 1080 Ti: +59%
TechRadar ranked Nvidia’s GeForce GTX 1070 as the best GPU for mining due to its high hashrate and energy efficiency—ideal for Bitcoin, Ethereum, and other cryptocurrencies.
Rising Mining Complexity and Energy Consumption
Bitcoin mining difficulty increases as supply approaches its 21 million cap (currently 17 million in circulation). In 2017, Bitcoin mining consumed 36 terawatt-hours of energy—more than 159 countries—highlighting the need for advanced processing power.
Impact on Gamers and Market Response
Gamers face empty shelves:
- AMD’s Radeon RX Vega 56 sold out in 5 minutes last year.
- RX 580 and RX 570 models were unavailable at Amazon, Newegg, and Best Buy.
Nvidia now limits purchases to 2 cards per customer to prioritize gamers.
Global Factors Intensifying Shortages
China’s crackdown on cryptocurrency mining exacerbates supply constraints. While AMD boosts production, shortages of GDDR5 and HBM2 memory persist.
FAQ Section
Q: Why are GPUs so expensive now?
A: Cryptocurrency miners buy GPUs in bulk, driving up demand and prices.
Q: Which GPU is best for mining?
Nvidia’s GeForce GTX 1070 offers optimal hashrate and power efficiency.
👉 Explore GPU alternatives for mining
Q: How does Bitcoin mining affect energy consumption?
A: The Bitcoin network uses more electricity than most countries, nearing Singapore’s annual usage.
Q: What’s AMD doing to address shortages?
A: Increasing production, though memory component shortages (GDDR5/HBM2) remain a hurdle.