Whether you’re a crypto miner or dedicated gamer, chances are good that you’ve been watching the prices of GPUs very closely. For the uninitiated, a GPU or graphics processing unit is a specialized electronic circuit that manipulates the creation of digital memory to create an image.In some circles, a GPU is known as graphics card.
Simply put, a GPU processes images and graphics which are then displayed on a monitor. As any gamer will tell you, in order to run the latest games smoothly, a powerful GPU is vital. So, you may be wondering what do GPUs have to do with Bitcoins?
In the past, Bitcoin mining was powered by CPUs or Central Processing Units. With the demand for Bitcoin in 2017 at an all-time high, miners were pushing their machines to the limit. One bright spark discovered that GPUs were particularly well-optimized for Bitcoin mining. This immediately resulted in a huge increase of demand for GPUs. In particular, Nvidia’s 10 series of GPUs had proven to be extremely effective. While the typical gamer usually purchases 1 or 2 GPUs at a time, the most complicated mining rigs boasted rows of hard-wired GPUs. Hence with such massive demands, it’s easy to understand why GPU prices were as high as they were.
However, in late 2018 when Bitcoin value crashed, the demand for GPUs began to fall dramatically. With the Bitcoin mining bubble bursting, prices of GPUs began to normalize, with prices falling by nearly 50% in some cases. If you’re a gamer, chances are you’re rejoicing at the chance to snap up GPUs at affordable prices. For the savvy investor, this also represents a rather interesting opportunity.
Leverage on falling GPU prices
The 2018 Cryptocurrency crash has led to the demise of many small-to-medium mining enterprises. Outside of China, Bitcoin mining has become almost prohibitively expensive due to price differential of cryptocurrency. From the large capital output to the huge electricity costs, Bitcoin mining is simply no longer profitable.
This is where you come into the picture. As was mentioned previously, smaller mining outfits have abandoned the business and would most likely be liquidating their equipment. Purchasing a used mining rig or rig(s) allows you to purchase several high-end GPUs in bulk at a relatively attractive price.
After this, reach out to the gaming community and start selling off your GPUs. While some gamers may choose to buy the latest equipment, those on a tighter budget would jump at the chance to own a top-end GPU at an affordable price.
Jump on the Bitcoin Bull Market in 2019
At the time of writing, Bitcoin prices have hit a high of nearly US$9,000; a far-cry from just a few months ago. With Bitcoin on the way to a resurgence, it is natural to expect the demand of for Bitcoin to be on the rise. The reasons behind this are varied; from the widespread acceptance of Bitcoin to the U.S-China Trade War, one thing's for certain; it’s a good time to own Bitcoins.
With the momentum starting to pick up, investors have begun buying up Bitcoins in a bid to jump on the crypto wagon. This increase in demand will undoubtedly provide miners with an incentive to restart mining operations.
While high-end mining operations usually invest in the latest technology, smaller to medium sized operations are more constrained in their budgets. Hence, with a few contacts in the crypto mining sector, you could easily become a supplier of pre-loved mining equipment.
The cryptocurrency industry has plenty of opportunities for the creative entrepreneur. Whether you’re speculating on Bitcoin prices or helping mining operations liquidate equipment, there’s also a chance to make some serious money.