After the recent ‘merge’, the Ethereum (ETH) network is a proof of stake (PoS) blockchain. After leaving the proof of work (PoW) system can no longer be mined ether, and the graphic processing units (GPU) that were used for this have become redundant. This is immediately noticeable in the prices of video cards, especially in China. GPU prices in China have reached an all-time low due to a lack of demand from ether miners.
No question for mining GPUs
A GPU trader in Shanghai tells at the South China Morning Post that a convergence of events led to this situation. He cites the free fall of the bitcoin price, the Chinese ban on mining and the new COVID lockdowns in the East Asian country as reasons.
According to the trader, the Ethereum merge is the drop that made the bucket overflow. In the last two months before the merge, prices have already started to plummet. Even the value of the cheapest video cards dropped by 50%.
“A customer of mine bought an RTX 3080 at the end of last year for 9400 Yuan (1356 euros). Now he is forced to sell it again for half the price.”
According to the Chinese trader Liu. This is a stark contrast to the past when the mining wave was at its peak.
“When the bitcoin mining wave was at its peak, sometimes all GPUs were bought with cash at once. Due to the coronavirus, no one is buying new computers, let alone a new GPU.”
Cheap video cards
Wang Lei, another GPU dealer, doesn’t expect GPUs to get much cheaper. According to him, the prices are at the lowest level he has ever seen.
Many shops and merchants in China depend on selling the valuable GPUs. There is a risk that the free fall of GPU sales prices will lead to large-scale bankruptcy of electronics stores. Others welcome the price drops. For countless gamers, programmers, and even astronomers, this means GPUs are a lot more affordable.
