SUPPLY VS DEMAND
Since October of 2020, a month after the release of NVIDIA's RTX 3000 series, RTX 3060Ti, 3070, 3080 and 3090, we started experiencing a shortage in supply in a rather gradual but astounding scale.
A combination of events that preceded and succeeded NVIDIA's event provided us with the greatest shortage of silicone the world has even seen. Even now, ending April 2021, we can safely say that the graphics card fiasco is in a much worse situation currently, than it was back in January 2021 where prices increased dramatically and we thought to have seen the end of it.
Some speculate that the main reason behind this is due to COVID that brought strict measures, social distancing, lockdowns and reduced personnel in factories. This alone decreased production output by a lot. Furthering on this, somewhat around January 2021, extra tariffs were introduced on International Trade causing an increase in tech part prices globally. And then, we also have mining. Mining for cryptos, especially Bitcoin and Ethereum is one of the primary reasons that the world never sees most of this output. Money hungry scalpers and miners go daily after RTX 3060Ti, 3070, 3080 due to their somewhat good price-to-value ratio that helps them to hash crypto and establish a monthly income.
This hunger for crypto, demand for graphics, limited supply ,increase in tariffs has created a chaotic situation in the past 6 months that has scarred the Technology sector in every way possible. Gamers are cornered, production workstations have a hard time and overall the frustration is paramount to everyone and anyone that would like to build a gaming desktop or workstation, upgrade his PC or even would like to mine, as availability is none most of the time and prices have quadruple away from MSRP. And when you thought paying $900 for an RTX 3070 was the ceiling back in January, they currently fetch for $1400.
NVIDIA tried to balance things out with introducing RTX 3060, with a 50% locked hash rate back in February 2021. This quickly failed as miners got a way around it and also preferred instead of waiting around for RTX 3070s to appear, to go after RTX 3060. AMD stepped in the game with 6700XT that didn't make any difference as scalpers it before it even launched.
So will this ever end? NVIDIA and tech experts predict somewhere in 2022 or even 2023 as they announced that supply will approach demand and hopefully this crypto frenzy will die down.