The period from 2020 to 2022 was marked by a significant increase in GPU prices due to the high demand from miners. The surge in Ethereum mining, coupled with other factors related to the pandemic, led to shortages of graphics cards. Fortunately, this situation came to an end in September 2022.
Fast forward to 2024, and a new mining crunch seems to be taking place, this time involving CPUs, particularly those from the AMD Ryzen lineup. An analysis conducted by Wccftech has highlighted the growing mining profitability of proof of work (PoW) coins that are best mined using CPUs. The recent surge in mining profitability can be attributed to Bitcoin reaching new all-time highs, which has had a ripple effect on the alt-coin market.
One of the main catalysts for the increased demand for AMD Ryzen CPUs is the RandomX algorithm used by Monero and other PoW coins. Benchmark results from XMRig show that high core count AMD chips are dominating the list, with the AMD Ryzen 9 7950X sitting at the top with a benchmark result of 26,783. This demand has led to supply shortages, as evidenced by the AMD Ryzen 9 7950X being out of stock at Newegg and being sold above its launch price.
As the mining craze continues to grow, there are speculations about the impact on AMD’s future CPU releases, such as the upcoming Zen 5 models. The potential adoption of AVX-512 could further boost the mining performance of AMD chips, placing them ahead of Intel’s offerings. There is even talk of AMD releasing low hash rate versions of Zen 5 CPUs, similar to Nvidia’s LHR graphics cards, to deter miners.
The increasing profitability of mining poses a dilemma for gamers looking to purchase high core count CPUs in the future. While the availability of cheaper Zen 4 chips may provide some relief, the looming presence of mining may impact the pricing and availability of AMD’s Zen 5 models. It remains to be seen how AMD will navigate the challenges posed by the mining craze and maintain a balance between catering to miners and gamers.
The resurgence of mining, this time focusing on CPUs, is creating a new wave of demand for AMD Ryzen CPUs. The implications of this trend on the availability, pricing, and future releases of AMD’s CPUs are significant, especially with the continued rise of Bitcoin and the influx of money into the crypto market. As we await the unfolding of events in the coming months, it will be interesting to see how AMD responds to the evolving landscape of CPU mining and its impact on the gaming community.
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