Blury when streaming and recording

Jul 3, 2018
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Hello everyone! Before I start I would like to say that my English is not good, because it's not my native language (sorry for that). It's a little bit difficult to explain what is my problem, but I will start form the begining. I have a small YouTube channel with around 30 subs (most of them my friends). In this channel I stream games like Fortnite and Minecraft. I have a good pc (I think :) ). The specifications are:
CPU: i5-7400 kaby lake
GPU: MSI GTX 1060 3GB
RAM: 8GB 21XXMhz(I forgot)
So let's continue. My monitor is 1280x1024 and it's aspect is 4:3, but I am streaming and recording in 1920x1080 by using the nvidia settings to change the resolution (I am NOT using the nvidia DSR setting because my monitor's aspect is 4:3 and I will be able to change the resolution only to 4:3 resolutions, so I am just clicking right button on desktop->Nvidia Control Panel->Display->Change resolution to change my resolution for 1280x1024 to 1920x1080 or any 16:9 resolution. So the problem starts here... When I am streaming or recording in full hd or hd the final result is blurry video. When I move my view in the game, the viewers see bitrate drops (I think). It's just blurry when I move. The FPS are good (60 I also tried with 30). I tried everything. I tried every kind of different settings in OBS and other recorders, but I couldn't fix it. I changed the bitrate and the other settings a lot of times. But there is no difference.
So my question is, is there any possible way on the Earth to fix the problem? Is the cause of the problem that I am not using the DSR (the only good way to do it when you havent good monitor)? Should I buy a new monitor that has 1920x1080 native resolution and will it fix the problem?

Thank you so much if you are reading this. I would appreciate it if you help me guys. Thank you!
 
Solution
I meant to say that it seems fine from 1:27, I dont see any blury, youtube takes some time to process video.

In output, at recording tab try changing recording format to FLV, set encoder as x264 (CPU encoding, just beware of stuttering).
Can you link an example on youtube/upload?
When using nvec to record/stream image looks bit blurry, but with CPU it gives crystal clear image.

This is far as I know.
Which settings do you use?
Have you tried without rescaling (setting in video and recording/streaming option your resolution 1240x1024?)
 
Jul 3, 2018
4
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Yes sure. https://youtu.be/hq4FY9V6Cm4 It starts at 1.27 but its blurry before that too. Also my internet speed is 50mbps and I tried with the native resolution and its better. But I want to stream and upload good quality videos at 16:9 reaolutions (720p or 1080p). Can you tell me how to switch to CPU in OBS? I think my CPU is not so good and I am trying to use it less.