Ethereum Miners Spent $15 Billion on GPUs Alone During Latest Cryptocraze

Ethereum Miners Spent $15 Billion on GPUs Alone Throughout Newest Cryptocraze

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Whereas GPU makers are reluctant to speak about gross sales to miners, analysts from Bitpro Consulting estimate that Ethereum miners bought $15 billion price of GPUs over the past 1.5 years, Bloomberg stories. When mixed with the costs of different components for his or her mining rig (CPUs, PSUs, chassis), the amount of cash spent on Ethereum mining {hardware} globally would look much more spectacular. Miners may need consumed about 10% of discrete GPU provide within the final 1.5 years. 

When Ethereum pricing rose steeply in October-November 2020, thousands and thousands of individuals began mining Ethereum cash to make some straightforward cash. They used graphics playing cards purchased at retail, and their purchases coincided with skyrocketing demand from players as each AMD and Nvidia launched very aggressive Radeon RX 6000 and GeForce RTX 30-series playing cards in late 2020. These GPUs are nonetheless the very best graphics playing cards round

Demand from each players and miners exceeded provide, so costs shot by the roof. For this reason the common promoting costs of GPUs, which have been already excessive in late 2020 as a result of rise of PC gaming in the course of the COVID-19 pandemic, elevated to unprecedented ranges. In Q1 2021, a high-end graphics card (which carries an MSRP of $649 or above) value $1,358 on common, whereas the common promoting value for a lower-tier GPU was $1,062, in line with Jon Peddie Analysis

(Picture credit score: Tom’s {Hardware}/Jon Peddie Analysis)

Based mostly on information from JPR, desktop GPU gross sales totaled $51.8 billion for all of 2021. That was unfold throughout the 49.021 million GPUs offered — a four-year excessive. So far as common pricing is worried, we’re speaking about $1,056 per unit in 2021, which is about two instances increased than the common value for a high-end graphics card in Q3 2019, so the inflation is clear. 

Now that we all know the approximate common pricing for a graphics card in 2021 and the amount of cash miners spent on GPUs, we will estimate that Ethereum miners consumed roughly 14.2 GPUs from the fourth quarter of 2020 to the tip of the primary quarter of 2022. The quantity is just not utterly correct, although, as some miners used special-purpose mining playing cards (not counted by JPR), whereas others used gaming notebooks to mine. As such, the precise variety of GPUs that went to mining farms might be totally different.  

(Picture credit score: Tom’s {Hardware}/Jon Peddie Analysis)

Nonetheless, 14.2 million is important on condition that we’re speaking about six quarters when Ethereum mining thrived. In actual fact, from This fall 2020 by Q1 2022, about 73.55 million desktop discrete GPUs shipped. Holding in thoughts that these days the market of standalone GPUs splits roughly 50:50 between desktops and laptops, it appears to be like like Ethereum may need consumed about 10% of the entire discrete GPU output from This fall 2020 to the tip of Q1 2022. 

Nonetheless, it is even tougher to quantify what number of GPUs have been used for each gaming and mining. 

Ethereum

(Picture credit score: Coinbase.com)

Ethereum worth has dropped by 70% this yr, so it’s unlikely that anybody will purchase a steady of recent graphics playing cards for mining Ethereum. Individuals who purchased their playing cards and rigs early sufficient most likely earned some hefty income on them when Ethereum was at its peak. However those that started mining final yr are months, if not years, away from recoupling their investments. Bloomberg’s story additionally features a report a couple of man who invested $30,000 in cryptomining {hardware} in mid-2021 and has solely earned about $5,000 price of crypto to this point. We’re positive loads of different miners have discovered themselves in the identical place. 



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