High pricing of GPUs and the reasons behind it

Throughout the most recent few years, the GPU market has disfigured into an appalling monster where even entry-level GPUs are priced high as much as top GPUs.

But why is this wailing? Today, in this blog, we will try to discuss the reasons behind it.

The most common and discussed reason everyone knows is cryptocurrency mining. There are different types of cryptocurrencies. Ethereum, Litecoin, Dogecoin, Tether, Omni etc. However, the oldest and most profitable of these is Bitcoin.

Simply put, the graphics card is an essential component for mining any cryptocurrency. Miners use a variety of graphics cards to mine Bitcoin. The AMD RX series GPU can mine Bitcoin most efficiently.

So private miners started buying 15/20/25 graphics cards together. Bitcoin mining firms have even been seen in several countries including China, Russia, USA, where 3/4 thousand AMD RX series GPUs are being used simultaneously.

Although AMD has benefited from this, it has created an artificial crisis in the market for gamers which is still going on. And because the demand is high but the supply is low, the vendors also understand the opportunity and in some cases increase the price of the graphics card depending on the situation.

So if you want to buy an AMD graphics card but you see a very high price in the market or you can't get it in stock, you can blame the international bitcoin miners.

Now you may be wondering why the price of Nvidia graphics cards has also gone up? In this case, 20% of the blame lies with  cryptocurrency miners because they are not getting AMD GPUs on the market and are buying everything that is available from Nvidia.

So who is to blame for the remaining 80%? Well, the other 80% are the Chinese gamers and the players' of unknown battleground games.

For those of you who don't know, PUBG is a Last Man Standing Third Person Shooter Battle Royale game where 100 players on a server go round and round to kill each other.

This is currently the most popular game and according to the Steam chart, an average of eight and a half million players play this game every hour.

About 42% of PUBG's online player base is Chinese. In other words, out of every million online gamers, 4 lakh, 20 thousand are Chinese gamers. In addition, among the game's 32 million sales, 53% are Chinese gamers. And the optimization of the AMD graphics card for this game is very bad.

The various benchmarks show that the PUBG game runs relatively well on Nvidia hardware. In addition, 57.4% of the world's Steam users are in China alone. The main market for computer manufacturers is also in China.

All brands allocate their products in China before international shipping. And because of the PUBG game, the demand for Nvidia graphics cards in China has increased so much that the brand has been able to allocate a very small amount of GPUs for the international market. Due to which the international price of all GPUs has gone out of reach.