The period from 2020 to 2022 witnessed a surge in GPU prices due to the high demand from miners. However, with the end of this GPU crunch in September 2022, a new trend seems to be emerging in 2024 – the increased demand for CPUs, specifically AMD Ryzen processors. This shift is driven by the profitability of Proof of Work (PoW) coins that perform best on CPUs, such as Bitcoin hitting new all-time highs.
As highlighted in an analysis by Wccftech, mining profitability has skyrocketed, leading to shortages of AMD Ryzen CPUs. The AMD Ryzen 9 7950X, for example, was out of stock at Newegg with a list price of $741, higher than its launch price of $699. This scarcity is surprising well over a year after the 7950X’s launch, indicating a significant demand from miners. The dominance of high core count AMD chips in benchmarks for CPU mining algorithms points to the mining appeal and efficiency of AMD’s Ryzen 7000-series CPUs.
The surge in mining profitability is not limited to well-known cryptocurrencies like Bitcoin, but also extends to lesser-known coins like Qubic, which can generate up to $3 a day. With the continuous rise of Bitcoin and inflow of money into the crypto market, the profitability of both established and emerging cryptocurrencies is expected to increase. This trend raises concerns for gamers looking to purchase high core count Zen 5 CPUs in the near future.
Looking ahead, the introduction of AVX-512 instructions could further enhance the mining performance of AMD CPUs, especially when compared to Intel’s CPUs that do not support AVX-512. There is speculation about AMD releasing low hash rate Zen 5 versions to deter miners, similar to Nvidia’s LHR graphics cards during the mining boom. However, it is uncertain whether AMD will take this route. As the demand for CPUs in the mining market continues to rise, the availability and pricing of AMD’s upcoming Zen 5 models remain uncertain.
The mining frenzy that plagued the GPU market in the past has now shifted towards CPUs, particularly AMD Ryzen processors. The increasing profitability of CPU mining for various PoW coins is driving up demand for high core count CPUs. As the crypto market grows and evolves, gamers and other users may face challenges in accessing and affording the latest CPU models. It remains to be seen how AMD and other industry players will address these changes and maintain a balance between catering to miners and other consumers.
Leave a Reply