Cryptocurrencies are going through a turbulent time at the start of 2018, but they have proven that they are here to stay. Even though the price is crashing, there will be a recovery once regulation has caught up to technology and everyone knows the set of rules they need to play by.
At the moment, the market is very speculative and the acceptance of such digital currencies is also growing. Rapid changes in the acceptance of digital currencies and constant changes in government policies and laws related to them makes the ecosystem fairly volatile. Until the technology and government policies regarding digital cryptocurrency coins across the globe has been finalized, you will continue to see big fluctuations in the price.
Gamers were the first to buy Bitcoin as it started out as a currency on gaming platforms. Gamers are generally ahead of others in terms of technology and are seen to be early adopters of technological advancements. That is why cryptocurrencies have been very popular with this community. However, gamers are now losing money in digital currencies. Here are the reasons why.
1) Increased Difficulty Level in Mining
Mining of cryptocurrencies has become more energy-demanding. There are many areas that cryptocurrencies are affected and one which will become more prevalent in the future is mining. This is a process that uses a network of computers to solve algorithms which give the ultra-secure automated network “the blockchain”. The computers that are connected to this network get a reward in the crypto that they choose to mine. This takes a lot of computing power and needs top of the range graphics cards to get the most out of the process. This is also applicable to all other cryptocurrency miners.
2) Increase in Mining Demand
The popularity of cryptocurrencies is increasing exponentially. This has led to a surge in demand for mining too. However, the rewards for mining have depleted significantly. There’s a tiny amount of money produced with each transaction, but done on a mass scale, it can produce great returns. It has led to over demand for high-end graphics cards which has seen the prices skyrocket due to this.
3) Expensive Hardware
One of the most popular Graphic cards gamers like to use is the GeForce GTX 1070. With increase in demand for high-end graphics and processors for cryptocurrency mining, the prices of hardware has surged due to increased demand and a shortage in stock. It is hitting gamers hard in the pockets.
4) Custom-Built PCs
For serious gamers who like to build their own PCs, the cost of the graphics cards is making this an unforeseeable option. All of the most popular cards such as GTX 1070 and GTX 1060 have nearly doubled in price. The major graphics cards companies such as Nvidia are trying to get retailers to make gamers their priority, but due to the huge returns, they can get from miners most are ignoring this advice. A few retailers have stayed loyal to gamers by limiting miners purchasing large stacks. Other companies such as Micro Center are offering PC gamers a discount when they buy it with other components.
5) Graphics Card Shortage Worldwide
The problem is not just isolated to one region of the world as globally there is a major shortage of high-end graphics cards. Until this demand can fulfil the prices will continue to rise and gamers will suffer at the hands of the greedy cryptominers.
Hopefully, due to the demand for high-end graphics cards, it will push developers to advance the technology further. There is a lot of money to be made by combining the two processes. Maybe in the further gamers will be able to play games while mining enough crypto at the same time to be able to do it full-time. Until we get to that point gamers are going to have to bear the brunt of the Blockchain and cryptocurrency mining costs.