Due to the recent Covid pandemic, almost everything related to technology has experienced dramatic price raises. Specifically, the Graphics Cards or GPUs which are now an essential part of any computer system have seen even more price raises and eventually global shortage. One particular question that has been bugging anyone wondering to build a PC or even upgrade their old PC is whether or not there will be a decrease in the inflated prices of graphic cards. We will be discussing
So, when will graphics card prices drop? Will that happen in 2021? The answer to this will definitely surprise you. It is already happening. The year 2021 can easily be marked as the year of great graphic card shortage on a global level.
Reasons of Decreasing Graphics Card Prices
There are several factors affecting this imminent price decrease. It includes the recent Cryptocurrency market crash and major coins devalued, a partial ban on Cryptocurrency mining in China, and an announcement from major companies to stop accepting crypto as payment.
Crypto Market Dip
One of them is Cryptocurrency. The recent Bitcoin market crash has changed the tides of the GPU industry and has started taking steps back to normalcy. Due to the downward trend of the cryptocurrency in general and Major coins such as Bitcoin and Ethereum, there has been observed a sharp decline in the prices of computer hardware such as graphic cards. Since graphic cards are the key factor to cryptocurrency mining.
Even though the progress is slow, but it still counts. Overall, the Covid Pandemic has caused so many problems that the global supply chain has been affected.
Another major factor is also related to Cryptocurrency. As China previously hoarded most of the world’s graphic cards, the recent mysterious ban on Crypto Mining has pressed miners to either shift their establishments out of the country or abandon it completely. This has also caused a massive influx of graphic cards in the international market. So, it is apparent that soon people will be able to get their hands on their favorite GPUs which were just recently rare.
One more thing that can be regarded as a factor but plays only a tiny part in the GPU price drop, is the new feature in Nvidia’s latest-gen SKUs. Nvidia has incorporated a Hash Rate technology. This basically limits the mining capability of a graphic card. Hence, the reduced demand and consequently lower price. This gives gamers a better chance to land a good GPU and limit miners since the card will be capped from its potential.
NVIDIA VS AMD in Lockdown Prices
As always, Nvidia and AMD are also handed to in price drops. But first and foremost, the thing to bear in mind is that the retail price inflation for Nvidia has substantially been much greater than that of AMD. A month ago, it was reported that, because of the greater inflation of Nvidia cards, it will also fall back before AMD. And this is exactly what happened. The price inflation was partial because miners prefer Nvidia cards over any other when it comes to cryptocurrency and reliability.
Since AMD experienced lesser inflation than that of Nvidia, hence the downward trend is also similar, slow. But a question still remains whether how much the prices will drop?
Because some of the Nvidia and AMD cards are currently being sold at +200% MSRP, and this figure is after the price drop. Some of the major analyses and markets predict that these inflated prices will most probably continue through the end of this year. And the market will come back once again to normal MSRP after the year 2021, that is 2022.
Now what remains is the logistics and supply chain issue to be resolved. Which is just a matter of time now.
And since all these predictions are never really guaranteed, the market can always change suddenly.