Litecoin Miners are not The Only Reason of AMD Graphic Cards’ Recent Price Hike

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Litecoin Miners are not The Only Reason of AMD Graphic Cards’ Recent Price Hike

Litecoin Miners are not The Only Reason of AMD Graphic Cards’ Recent Price Hike

It seems like Chinese New Year had also an important role in the company’s recent price hike on its GPUs.

ForexMinute.com – In a recent announcement made by AMD, the Litecoin miners are not the only ones to be blamed for their decision of hiking the prices of high-end graphic cards. The US semiconductor company also held the Chinese New Year responsible for this sudden inflation.

The explanation was made in response to the questions raised by Digital Trends, an Oregon-based tech blog.

Earlier this week, AMD had hiked the prices on its Radeon R9 290X Graphic Processing Unit by over $200. The graphic card series was launched at around a mere $500, and last week elevated to over $700. The tech experts speculated it to be the rising demand of the GPUs by the Litecoin miners, which eventually blanked the AMD’s inventory at the end.

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The event coincided with the Chinese New Year, which put AMD in a frenzy of manufacturing new R9 GPUs at a higher costs. China’s low PMI have already been in the news for some time – a victim of whom is also an AMD Radeon R9 290X buyer. This cycle clearly explained the coupled role of both Litecoin Miners and Chinese New Year that led a common buyer to pay more than he could afford for AMD GPUs.

What’s the Fuss with Litecoin Miners?

With Bitcoin’s popularity seeing a drop amidst the Mt. Gox’s temporarily shut down, its alt-currency Litecoin is showing a promising alternative to the investors. The silver coins’ demand have been huge in the past month, provided further with the faith by investors all around the world. This has led Litecoin miners to accelerate their block-generating process, hence the increase in demands of AMD’s high-end graphic cards.

AMD had made no announcements of even considering to restore the Radeon series prices, while Litecoin miners are not in a position for any better alternative. The reason why AMD cards are highly efficient in mining Litecoins is their compatibility with the Scrypt algorithm, on which the Litecoin is made. Scrypt is perfectly operated by the proper instruction set OpenCL – an open computing language developed by AMD.

Although, the tech community awaits the easing of China’s PMI that may have some positive impact over the AMD GPU’s prices.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com