Now that there’s a shortage of GPUs, Nvidia released a memo to its retailers saying they should prioritize gamers versus users who are buying the products for cryptocurrency mining.
Since last year, there has been a lack of available graphic cards on the market. According to Vice, it is because of the crypto miners who are hoarding GPUs for the expansion of their mining activities.
To recap, mining is a way users can create unique blockchains so platforms like Bitcoin and Etherium can create more transactions. By mining, users no longer need to bet their money on any cryptocurrency. They just need to create these unique codes and most of the time, it’s by an automated process. The only challenge is for a person’s CPU to manage as many processes as it can.
However, the volatility of the crypto market also affects miners. Initially, one can mine as many blockchains as their own personal computers can, but with the rise of the network cost and electricity, the revenue for crypto mining can barely cover the operational costs.
Nonetheless, miners who still profit from the process are fully invested in upping their computing power. This is where Nvidia comes in. Since GPUs are needed in creating a faster-performing computer, minders are reportedly hoarding Nvidia GPUs. Since the launch of mining, it has been very hard for users to purchase GPUs online.
As a result, Nvidia decided to send an advise to their retailers telling them to prioritize PC users and gamers over miners.
Nvidia spokesman Boris Böhles told German hardware website ComputerBase that their GeForce product line are particularly focused on their “main target group” which is the gaming community.
“To ensure GeForce-Gamers continuously have access to GeForce-graphic cards even in the current situation, we recommend our trading partners to take according measures to ensure they can provide the needs of gamers per usual.”
Böhles’ statement also heeds retailers like Canada Computers & Electronics and Caseking that are said to limit the purchase of GPUs to one to two per person. Note that PC gamers are known to use, on average, two high-end GPUs for each computer.
Nvidia still doesn’t have a definite solution for its consumers. They don’t have the capability to distinguish mining versus gaming purchases and they’re still coordinating with their own retailers. Motherboard notes that even if they could increase production to meet market demands, “Nvidia could be stuck holding too much stock of a technology” if the volatile crypto market crashes and they’re left with just the gaming uer.