Cryptocurrency miners spent $776 million to buy GPUs in 2017

According to a recent report by Jon Peddie Research (JPR), Cryptocurrency miners purchased about 3 million GPUs in 2017 for a total of $776 million. Miners use the GPU’s parallel processing capabilities to collect Bitcoins, Monero, Ethereum, and more.

While good news for GPU makers, they are negatively affecting other industries. The rise of cryptocurrency mining has led to a shortage of GPUs, affecting the PC game and graphic design industries and even affecting researchers looking for extraterrestrial life. The shortage has led to sharp increases in second-hand GPU prices, in many cases up to hundreds of dollars.

However, GPU shipments declined in the fourth quarter as the prices of cryptocurrencies, such as bitcoin, plunged in recent months.

According to JPR’s report, “Year-to-year total GPU shipments decreased -4.8%, desktop graphics decreased -2%, notebooks decreased -7%. Over 363 graphics units shipped in 2017.”

Other manufacturers are less fortunate, “AMD increased its market share 8.1%, Nvidia decreased -6%, and Intel decreased -2%.”

Jon Peddie, President of JPR, said in the report: “Gaming has been and will continue to be the primary driver for GPU sales, augmented by the demand from cryptocurrency miners. We expect demand to slacken from the miners as margins drop in response increasingly utilities costs and supply and demand forces that drive up AIB prices. Gamers can offset those costs by mining when not gaming, but prices will not drop in the near future.” However, after all, these are predictions, GPU shortage is still a reality, it is not clear when it will improve.

Source: jonpeddie