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The News God > Blog > Tech & Autos > Graphics Processor Prices: What Is in Store for 2022 and Further
Tech & Autos

Graphics Processor Prices: What Is in Store for 2022 and Further

Rose Tillerson Bankson
Last updated: March 13, 2022 5:53 pm
Rose Tillerson Bankson - Editor
March 13, 2022
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It was a challenge to obtain a video card in 2021. Cryptocurrency enthusiasts and resellers rushed to buy thousands of individual hardware pieces and even top-performing gaming laptops. This equipment allows getting (mining) price-rising Bitcoin and other tokens to sell them later for real money.

Contents
  • Why Graphics Processors Have Become So Expensive
  • When the Hardware will Drop in Price
  • What Alternative Crypto Acquisition Is There

As of the beginning of 2022, the situation has not noticeably improved, yet not worsened much. In December of the previous year, video card prices have leveled off. If they used to be 90% more than the recommended retail price in January, this figure is already varying around 85%.

According to NVIDIA and Rad-eon, the situation will begin to improve only in the second half of 2022. Meanwhile, Intel is less optimistic. The company prepares to launch its Arc Alchemist GPUs and is scared of an immediate buyout. So, what will the situation be like this year?

Why Graphics Processors Have Become So Expensive

Video cards are getting less affordable on a daily basis. Their prices were rising by 1% every few days, and some models almost doubled in less than a year. In autumn 2021, overpayment for AMD cards in Europe exceeded 101% compared to the manufacturer’s recommended price.

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Why the cost of video cards is so high:

  • The shortage of hardware began to grow from September 2020. As of the beginning of 2022, their prices have almost tripled.
  • The coronavirus pandemic caused problems for chip producers Samsung and TSMC that resulted in the inability to keep up with growing demand.
  • The situation was greatly aggravated by the explosive growth in prices for cryptocurrencies.

According to the creators’ data, in just 20 days, from October 10 to 31, 2021, the cost of the number of Nvidia accelerators jumped by 16%. AMD Radeon equipment showed an even more rapid rise — by 18%.

When the Hardware will Drop in Price

In August 2021, the world witnessed a minor decrease in the value of graphics processors. If in May the RTX 3060 video card (the most commonly used, included in the middle price category) cost an average of $950, in summer, the fee has fallen by a quarter — to $710. Fees for other models that miners use to obtain cryptocurrencies have also decreased.

Analysts attribute the fall in prices for graphics adapters to the decline in the value of Bitcoin and other digital tokens. At its peak on May 10, its cost reached 60 thousand dollars. The average dynamics of market prices for video cards have quite noticeably followed the changes of Bitcoin and major cryptocurrencies, but with some delay necessary to consolidate the trend.

Over time, the increasing popularity of Altcoins (all cryptocurrencies except BTC) can smooth out the dependence of prices for video cards on the dynamics of the market. Such digital cryptos mainly use hard drives. If this trend continues, the whole world will soon follow the price increase for this hardware with the same tension and interest, as it is now watching graphic processors.

Another explanation shows that the price decrease was impacted by the drop in the rate of the Ethereum cryptocurrency. According to the portal Coinmarkertcap.com, on May 12, this token was worth $4,290 and on August 2, it was already $2,599.

So, the 3 main grounds for graphics processor figures to stabilise are:

  1. The decline in demand for BTC and Altcoins. If there will be no reason to mine digital currency, there will also be no need to purchase gaming hardware so avidly. However, with the increasing legalisation of crypto on a state basis (i.e. El Salvador), this is not likely to happen in the nearest future.
  2. The end of coronavirus lockdown. One of the major reasons for a huge necessity for graphics processors is gamers’ home-based activities. In case the COVID-19 pandemic comes to an end, fewer people will need improved video cards since they will no longer spend all their time in the house.
  3. Increase in production capacities. Since the lack of semiconductors is a crucial reason for a shortage of graphics processors, the increase in their creation will drop the prices significantly. The problem with the lockdown is of enormous influence here since it is impossible to raise the performance without workers themselves.

By the preliminary estimates, the next major drop in prices will be in 2023. The Coronavirus pandemic is going to end, and the demand for BTC and other cryptos will decrease.

What Alternative Crypto Acquisition Is There

While mining Bitcoin remains the most popular way to get it, there are other activities to take up if you want to increase your crypto wallet. One of the most effective is launching a gaming platform based on BTC. The necessary software for such a business is easy to get and effortless to integrate. Besides, there is no need to obtain a licence if Bitcoin is the only payment method.

Casino Market has been monitoring the situation with the crypto demand since it became noticeable. Timely reaction to the issue helps their clients yield additional profit. If you require help in this or any gaming-related questions, contact customer support for any inquiries.

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