Should Litecoin Miners be blamed for AMD’s High-End Graphic Cards Price Inflation?

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Should Litecoin Miners be blamed for AMD’s High-End Graphic Cards Price Inflation?
Should Litecoin Miners be blamed for AMD’s High-End Graphic Cards Price Inflation?

Should Litecoin Miners be blamed for AMD’s High-End Graphic Cards Price Inflation?

If you have been wondering to purchase a brand new AMD Radeon R9 290X graphic card lately, its updated prices might give you a punch harder than the one of Rocky Balboa. Within mere a four month since its launch, AMD’s top line graphic card has increased up to 40% of its original price, leaving its customer base in a damp squib.

If we roll back to find the reason of such sudden boost in AMD’s high end graphic cards, we will notice a rising demands of these cards by crypto-currency miners, especially the Litecoins miners. In a true sense, they are alleged to be the culprits that have prompted AMD to take advantage of the situation.

In our article “Litecoin – The Currency to watch out for in 2014”, we first predicted Litecoin as the best alternative to Bitcoin, and also mentioned “the outgrowing sales of GPUs and ASIC rigs that are used to mine Litecoins”. Our report is further authenticated by the rising demand of AMD’s high-end GPUs that, according to several Litecoin Miners, offer the best price-to-performance ratio.

We have also discussed the Litecoin block being generated every 2.5 minutes, which is much lower than the Bitcoin’s block generation – 10 minutes. It is also one of the reasons why miners are more inclined towards generating Litecoins rather than Bitcoins – the currency which is now mostly generated using ASIC machines and requires much more power and time to be mined through GPUs.

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Thus, the Litecoin miners will not have any trouble in spending such huge sums for AMD’s graphic cards as their profitability lies on creating Litecoins without trouble and invest them in market. The only victims here left are the users who were planning to buy these positively reviewed graphic cards for purposes other than Litecoin mining. They though can find similar alternatives in NVidia’s GeForce GTX 780 Ti or GTX 780 that are cheaper and marginally faster than the AMD Radeon R9 280X.

We should also hope that the rates on Litecoin mining graphic cards see a dip when the digital currency’s specific ASIC machines become available in the market. At the start of the January, Alpha Technology had announced their Litecoin specific ASIC machines available to pre-order, whose release are yet awaited by enthusiastic Litecoin miners.

Though, the quick upsurge in AMD’s hardware prices is mostly seen in North America, in which the Radeon R9 290X and Radeon R9 290 are available at $899 and $599, respectively. Meanwhile in the U.K., the prices are slightly increased with the model R9 290X being available at $560 and R9 290 at $460, excluding VAT. Australian prices have also gone largely unaffected by the hovering AMD’s graphic card prices in North America.

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