‘Foolish’ to Invest in High-End GPUs for Crypto Mining, Says Research Firm Head

Purchases of graphics processing items (GPUs) by cryptocurrency miners helped an explosion of gross sales throughout the fourth quarter of 2020, in accordance to graphics and multimedia analysis agency Jon Peddie Research (JPR).

In a press release on Wednesday, JPR mentioned GPU shipments rose by 20.5% in This fall in contrast with the earlier quarter and 12.4% yr over yr.

The enhance in gross sales, largely due to a coronavirus-led shift to working from house workplaces and enhance in indoor-related actions equivalent to video gaming, was additionally boosted by cryptocurrency mining, the agency mentioned.

“The pandemic has distorted all fashions and predictions, as has the gold-rush in Ethereum,” mentioned JPR.

JPR President and founder Jon Peddie mentioned that whereas there was speculation crypto mining would probably spark a renewal of demand for GPUs, the facility consumption of high-end playing cards “vastly diminishes the payoff.”

Further, “Ethereum, the best-suited coin for GPUs, will fork into model 2.0 very quickly, making GPUs out of date,” mentioned Peddie. “An individual could be very silly to make investments in a high-end, power-consuming [GPU] for crypto mining as we speak.”

GPU suppliers like Nvidia have struggled to sustain with hovering demand for items that energy all the pieces from multimedia rendering to maintaining with the most recent recreation titles and, although they don’t prefer it, mining ether.

The demand from the crypto trade has been accused of constructing the most recent graphics playing cards scarce for the on a regular basis retail shopper. Nvidia just lately responded by altering software program drivers for high-end playing cards to make mining much less efficient. The agency will as a substitute supply a devoted mining unit.

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