Crypto mining has proven so popular that it has caused a worldwide shortage of GPUs, so much so that the WSJ reports that little supply has been left for PC gamers. For example, Nvidia’s GeForce 1080 Ti GPU, which launched last year for $700, now sells for $1,400 online. As a result, Nvidia’s gaming revenue surged 29% on a year over year basis to $1.7 billion during the fourth quarter of last year.
While a boon for Nvidia in the short term, crypto mining may not be a viable source of its revenue in the long term. Ethereum is changing its core algorithm from proof-of-work to proof-of- stake, potentially obviating the need for mining and GPUs. While GPUs will be used to mine other coins, their wild popularity based on Ethereum, the second most valuable cryptoasset today, may prove fleeting.
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