Crypto mining’s cost: How has hardware availability changed the industry?
Cryptocurrency mining has been and remains an attractive endeavor not only for fans of alternative financial instruments but also for those serious about investing.
When deciding whether to start mining, potential miners keep several well-known factors in mind: equipment and electricity costs, suitable climate and favorable legislation in the country of operation. At least, that was the case until recently.
In 2022, the situation changed and became more complicated. A few years ago, it was possible to mine cryptocurrencies by purchasing a graphics processing unit (GPU), reading a guide on how to construct a rig and simply mining coins. Such income was attractive for many online entrepreneurs, and soon new miners flooded the global market.
Yet over time, the complexity of mining has increased and led to the emergence of special equipment for crypto mining — i.e., application-specific integrated circuits (ASICs), which can mine far faster and more efficiently than GPUs. As a result, problems of a different nature have arisen such as green energy concerns, qualified personnel and equipment availability.
Related: Fortunes turning? Specialized GPUs and SSDs come to aid crypto miners
In the summer of 2021, many buyers of GPU cards — the main component of any farm and rig — sounded the alarm when it became nearly impossible to obtain them. The few latest-generation GPU cards available had prices far above what many considered to be fair value.
Exploding demand for GPUs was further exacerbated by the COVID-19 pandemic — which saw hunker-downers building and buying PCs to entertain themselves during quarantine — in addition to supply chain disruptions across the globe.
Major GPU manufacturer Nvidia attempted to curb miner demand by
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