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The graphics card shortage is probably one of the worst examples you could have tried to use. The root cause of the graphics card shortage was rampant central
by cbozeman 4y ago
The graphics card shortage is probably one of the worst examples you could have tried to use.
The root cause of the graphics card shortage was rampant central bank printing of currency.
This is a long ride, so buckle up... TL;DR at bottom.
How do we get there? Everyone got scared of a virus that was so lethal half the people who had it didn't even know they had contracted it. Yes, early on, COVID-19 looked like a contender, but six months in, we knew... we knew it killed fat people, old people, immunocompromised people. In other words, people that Nature herself is already stalking. Even with the delta variant, arguably the "worst" of the bunch, as long as you took moderately good care of yourself, weren't old, and didn't have compromised immunity, you very likely were going to be okay.
In response to this, politicians, always fucking terrified of being held accountable for any decision they make, decided to lock everything down in the Western world and send out a metric ass-ton of money to everyone. Well the only way to do that is for Jerome Powell to make the money printer go "brrr". Obviously, Europeans will do whatever America does, so all their central banks made money printer go "brrr". What exactly does happen when you pour trillions of dollars into the global worldwide market?
People start doing idiotic speculative investment, that's what... hence some of the most hilarious /r/WallStreetBets posts we've seen since the subreddit's creation. Meanwhile, a few people who still have their heads on straight realize that their life savings are being rapidly devalued and they start looking seriously at cryptocurrency for the first time. Even Grandma and Grandpa are buying a few of these "Byte-pieces". Meanwhile my neighbor, a bald, greying man of 53 who was literally a maintenance supervisor for manufacturing plants, ends up with a 18 GPU Ethereum farm running out of a shed on his 4 acre property in rural North Texas. That's how easy it became for the average person to set up a crypto-mining farm. A guy who graduated high school and spend 35 years turning wrenches on conveyor belts, fucking around with PLCs (which I do admit, you can't be a fool and do that...), manages to not only hoover up a shitload of GPUs during the pandemic, but also figures out how to buy mining motherboards, hook the shit all up together, and set it up so it's 24/7 mining Ethereum. He also has three 15,000 BTU air conditioners in the shed windows keeping the temps on the GPUs tolerable.
So if a beer-swilling, "God, guns, and country" blue collar laborer-turned-manager can figure out how to set up an Ethereum mining farm, and if Grandpa and Grandma can figure out how to put some money into Coinbase to buy Bitcoins, then you can imagine just how easy it was for more technologically adept people to get their hands on GPUs and start mining.
In Dallas, Texas at our MicroCenter, for pretty much the entire pandemic, it turned into a miniature version of Skid Row in downtown Los Angeles. Tents everywhere, everyone waiting for the daily lottery to see if they would get the chance to buy a GPU, so they could then go repost it on eBay, or sell it directly to a miner buddy, or just go home and install it into their own crypto-mining rig.
Moving on to NVIDIA, AMD, and their board partners... they were directly selling to miners. All of them. Thus bypassing the chance for gamers to even get their hands on the cards in some instances. TSMC and Samsung were at maximum capacity every single month of the pandemic. It never slowed down, except for "acts of God". This made sense as a lot of the white collar workers found themselves in need of laptops, webcams, monitors, blah blah blah, all shit that TSMC/Samsung makes chips for. That's another reason GPU demand was so dramatic. TSMC/Samsung couldn't focus every single wafer on GPUs. They had to make all kinds of shit for all kinds of devices. So you have a two-fold hit on demand. Everyone wants a GPU, but we're having to reduce capacity for other stuff we also need. Turns out you don't actually need an RTX 3090.
Talk about a "perfect storm".
But wait... people are now flush with cash for getting $600 unemployment payments every week for a year or two. So they do what any rational person does... THEY INVEST IT... HAHA, JUST KIDDING! They buy... new fucking cars. Yes, people buy new cars instead of paying off mortgages early or investing their hard-earned dollars into the market.
So anyway... that's how you get a GPU shortage.
TL;DR: Bad virus scare people. Politicians coward. JPow make money printer go brrr. People use pandemic money to buy Magic Internet Money printers called GPUs. Everyone has to make spreadsheets at home. Everyone has to buy electronics. No more capacity to make extra GPUs. Gamers have no GPUs, go play NES on an emulator.