GPU chips in India Selling at 2X, Are Crypto Miners to blame?
The Indian gaming market is suffering from a GPU shortage as newly launched Nvidia GPUs are selling at 2X the original price. For example, Nvidia 3070 GPU is priced at INR 45K but the partner cards are being sold at INR 90k and more. The shortage is being attributed to silicon scarcity and hoarding by crypto miners.
Indian retailers have said that crypto miners are being preferred over gamers when it comes to selling these GPU units as they buy in hoards. While many would disagree that miners are solely responsible for this shortage as most Nvidia made GPU’s have mining restriction that limits the hash power output required for mining and making a profit.
Industry insiders say while miners form a very little portion of the GPU market, the main reason for the current shortage is a global shortage of silicon and semiconductor chips.
Bitcoin Generated Through Mining is Tax Exempt
Crypto mining in the current market is quite profitable and Indian miners don’t want to miss the opportunity. Despite the confusion over the legality of crypto trading created by Indian banks, mining seems to be the new go-to option for many. Under current defined laws, Bitcoin or other crypto assets generated via mining are not liable for any kind of capital tax, thus making it a profitable and legal way to earn crypto.
India is yet to formulate any stand-alone regulations for the crypto market despite numerous requests from the budding crypto ecosystem as well as the Supreme Court. The raging pandemic could be blamed as well since the crypto bill was tabled during the last budget session, but couldn’t be discussed due to a shortage of time. The deputy finance minister of the country has assured that they are closely monitoring the market and other countries and the final regulations would be inclusive.