The worst bearish streak in crypto worldwide is facing a ripple effect on the prices of hardware that fostered the difficult mining process of these virtual assets. Aftermath the crash in cryptocurrency prices, mining digital assets has become not feasible, resulting in miners throwing away their high-end tools in the resale market which has yielded a crash in prices.
How hardware is affecting crypto mining?
Crypto mining demands users to solve a difficult set of problems on the computers after which they mint or unlock new cryptos, such as bitcoin. These difficult algorithms need high computing power to solve and miners typically use graphics cards curated for intensive gaming for this task. As prices have dropped, crypto mining has become not feasible since the task itself is very expensive.
Why the bargain in major cryptos?
The bargain in major cryptos began in April as global central banks initiated tightening their balance sheets and increasing interest rates. Ultra-accommodative monetary policies by central banks worldwide, which weighed down their currencies, have been one of the factors of the need for cryptocurrencies, which profited from the perception of the lower supply.
What else is required for crypto mining?
No doubt crypto mining is an expensive process. Besides high-end hardware, it also needs a lot of electricity. Amid the cryptocurrency boom two years ago, various miners added newer rigs to increase their returns. Essentially a bank of graphics cards put together for mining, a mining rig can contain anywhere between a few to tens of cards.
How the demand for the graphic card has varied this year?
Until the starting of the year, the need for these graphic cards was so high that their shortage led to a war between gamers and miners. Gamers claimed that miners were hoarding hardware curated particularly for gaming and pricing the main users out of the market. Now, gamers are having the last laugh.