there is some good news finally coming towards gamers but don't be fooled by some of
the headlines out there as today we're going to talk about why we as gamers should collectively
wait even longer until those prices come down to levels that reflect what nvidia and amd promised
us during their fancy presentations nearly a year ago do you feel like this when you see
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first piece of big news that we're going to talk about here is that supply shortage which is being
run around a lot of headlines that i'm reading in tech websites and upon digging into nvidia's own
quarterly financial report we can see that their margins have roughly stayed the same at around
65 percent this means that they have made roughly the same amount of profit on items sold that they
did this time last year however the revenue was up a staggering 84 from a year earlier in fact
the gaming revenue was up 106 that is nvidia made over double the money selling graphics cards from
the start of january through to the end of march in 2021 first the same period in 2020 where if
we take that same level of margin and subtract it from the revenue growth it means the graphics card
sales and more importantly the supply of those graphics cards would have been up roughly double
all else considered there's more to it than that but overall the supply was up quite a lot so there
is the proof that we all knew all along and that is the crypto miners took a lot of these cards
out of the market now the irony of this is that china is starting to just completely ban mining
altogether they've even taken it a step further by starting to ban cryptocurrency transactions
and crack down hard on any financial institutions dealing with such tokens
and according to the university of cambridge china before this crackdown accounted for roughly a
whopping 65 percent of all bitcoin hashing power or in other words china was responsible for 65
of all bitcoin mining so if we take that number of 65 and apply it to the gpu mining then we
can easily see that china is a massive player in the purchasing of gpus for cryptocurrency
mining and in fact according to some reports the gpu flood in china has already started
with one user reporting seeing rtx 3060s for as little as 270 dollars though upon checking taobao
personally i can still see that the prices of gpus are significantly higher than msrp a 360 ti
for example is fetching about 650 usd that's still over 60 percent higher than its promise 399 msrp
however here is where we can see the crossroads that is the point of inflection as we have record
supply of gpus being produced as well as in china miners not being able to purchase them leaves the
gamers as the only option left to purchase more so a lot of the cards coming out into the market now
have what's known as a low hash rate limiter embedded into the card and this has already caught
out some clueless miners purchasing rtx 3060s on the pretense that they could get the developer
driver and they'd be milking that cow harder than ever only nvidia quietly released a v2 of the rtx
3060 which is if you use the developer driver for that particular card then it wouldn't matter the
card would still only mine ethereum at half the rate so this simply tells me that a lot of people
getting into cryptocurrency to this date are still not doing enough research or paying their
due diligence and it's quite ironic when it comes to purchasing a tv a camera a smartphone or even
something like an internet plan people will spend countless hours researching these things to get
the best deal yet when it comes to crypto they'll just throw their money in hoping that it'll go up
just like it has gone up in the previous year but in my opinion as we watch crypto and going forward
i feel like in the coming months those avenues will get exhausted and the profitability will yet
again sink the next part of the equation is going to be a preemptive to the people that would say
well crypto is going to have a massive uptick in growth again well my response to that is who
is going to buy the crypto at its current price to make that explosive growth if we look back in
april and may people were selling cryptocurrencies at all-time highs those same people are only
looking to buy in when the price collapses not when the price is already relatively high
remember when it comes to dollars nothing is ever free despite what some people will tell you i
have never personally seen someone at my local shopping centre just handing out free dollars
it doesn't happen unless of course you were mr beast i wish you could hand out everyone some
free gravis cards but then again if he did that he'd become mr broke not mr beast however what
is going to happen from here in well you may have noticed i've been tracking one card in particular
that is the rx 6700 xt in my opinion it fits the bill of the value mid high range gamer perfectly
that is at its msrp it also isn't targeted by the mainstream gamer as say an rtx 3060 or an rtx 3060
ti due to nvidia having massive market share and more brand recognition than amd and the gpu gamer
space and most importantly its hash rates are not anywhere near as good as the rx 6800 which means
it's not targeted by miners as much as say the rx 6800 though expanding on that if we were to
look at the cards if they were msrp versus the price they are at market right now the 6800 is
much higher than the 6700 xt which does mean that miners are still buying up these graphics cards
for mining make no mistake about it just they are no longer buying them up in china which means more
supply for the rest of the world now back to the 6700 xt it has been an ample supply for nearly
a month now just that it has been in supply at higher than msrp prices though the interesting
thing is i've seen this card go down from 1300 usd to now 750 usd that is quite the drop in price
though it is still well above that msrp of 469 that amd told us to expect and in australia that
is about 620 aussie dollars if you add 10 tax we should expect to see this card come in at around
700 aussie dollars and while the card is still sitting at over a thousand dollars so the solution
just let the cards sit there we have already ascertained the production and hence supply is
at an all-time high for these gpus crypto although still highly profitable at least for those not in
china does carry much more risk than at the start of the year i mean what if they were to ban mining
in the usa australia you may think that is simply just too outlandish but never forget in 1934
they banned gold as money i mean how do you ban money as money well if that can happen
anything is possible another risk for miners is that there is a massive change coming in august
for ethereum miners that is only three weeks away this could spell a massive drop in profitability
and more gravis cards could come onto the market in the meantime the only video game you need to
play right now is the game of patience though the most important thing is what's going to happen
between now and that time that we get in between getting to those msrp prices well in my opinion
it's just a matter of what we're seeing right now and that is the ripoff swarm coming through
see gpu allocation is going to go to countries that are netting the gpu board partners and
distributors the most profit however this effect is losing momentum vary and i mean very fast rtx
3080tis 3090s 3070 tis every lineup of card is now an ample supply in australia and of course
it is in ample supply at ridiculously high prices nearly double that of msrp the amount of customers
willing to get ripped off as time goes on becomes less and less and since that supply all-time
record high supply might have is a constant it is only a matter of time before gpus become much more
reasonably priced of course i'm predicting right around this time as well the price floor from all
crypto will just come out straight underneath it just as quickly as price has inflated they can
deflate as well though lastly in a video i made nearly two months ago i predicted prices would
come down and i got laughed at heavily in the comments section initially though now it seems
like those that were laughing at me were probably crypto miners and i mean if you bought an rx 6700
xt for 1300 usd in may and at that time you were laughing at me then i have to raise the question
are you still laughing though regardless of whether you are laughing or not i'm simply here to
report on the news and then interpret it and make predictions based on what my research indicates
whether that is good or bad if someone held out on buying a gpu in may due to my advice and they were
a gamer then i'm personally very happy as they would have saved a lot of money by buying it now
even versus them though going forward it also seems the governments are winding down
the stimulus measures and credit companies are tightening aka a credit squeeze which makes me
much more confident going forward that gpu prices can only go one way and that is down anyway guys
hope you enjoyed today's video if you did then be sure to hit that like button for us and also
let us know in the comments section below what do you think about current gpu prices are you
looking forward to finally buying one as a gamer and playing some games at higher refresh rates or
are you still not going to buy one even if there is a massive flood and prices do come down a lot
love reading your thoughts and opinions as always and if you stayed this far and you're enjoying
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as soon as it drops anyhow i will catch you in another tech video very soon peace out for now bye