Why are GPUs so expensive?

[n8cwhite]

I've been looking at $350-400 PC Gaming builds recently, now that I have sufficient funds. A lot of builds on the internet  using graphics cards below or at $100, and when I look it up they're $175. Why have the prices on these gotten steeper? 

[Lurick]

GPU mining for crypto currencies are on the rise causing short supply and constantly growing demand.

[n8cwhite]

Just now, Lurick said:

GPU mining for crypto currencies are on the rise causing short supply and constantly growing demand.

Ah. Thank you.

[LienusLateTips]

memory shortage + extreme demand

= jacked up prices

[RyzenDoctor]

It was a stormy night. The GPU fairies coming from the North Pole of Nvidia and the South Pole of AMD were making their way slowly to the mom’n’pop shop down the corner. From a dark alleyway an evil bitcoin-mining imp lurked. While the two of them were chatting about which Santa was better and gave better FPS to the kids, the bitcoin mining imp struck. He beat up the Nvidia and the AMD fairies, and ran away with their bags of graphic cards.

 

The moms and pops in the mom’n’pop stores didn’t know what to do. The kids lined up for the new GPUs... but they only had last year’s stock in a dusty corner. They thought quite long and pondered. “What can we do to make everyone happy?”... “oh I know!” Said pops... “we crank up the price two... no three times, and let that rich kid from up the hill put a smile on old mommas face”

 

in the end, the poor enthusiast kids were turned away, as mom’n’pop were too greedy to share those GPUs at MSRP

[Princess Luna]

They aren't over-expensive, they just cost a lot because of the many uses you can give a GPU including but not limited to the popular mining that we're having, something that can make money certainly will have decent asking price tag like any other tool.

 

The better the tool the more expensive it is.