Since graphics cards can no longer be used to mine the cryptocurrency, Ethereum's long-awaited transition to proof-of-stake has had an even greater impact on the industry.
Following the Ethereum Merge, graphics processing units (GPU) prices in China have reached their "lowest level ever."
The demand for Nvidia's flagship GeForce RTX 3080 and 3090 models caused recommended retail prices to triple once ETH could be mined and the bull market was in full swing. But merchants in Shanghai's electronics retail market claim that during the previous three months, both demand and prices have fallen by roughly 40%.
Chinese GPU glut
One merchant said that, during the height of the mining boom, people from the mining companies stepped into the stores with bags full of cash and took all the graphics cards. “But now look at the stores. No one is buying new computers because of the coronavirus, not to mention those who want to install a new graphics card,” he added.
The second-hand market for graphics cards is also growing, but gamers are still hesitant to buy a card that has been used for cryptocurrency mining because those machines run at near to maximum capacity 24/7, stressing the components. “I don't think any PC users will want them, but it is difficult to tell from the outside whether it was a mining card,” said the merchant.
The counter claim is that mining GPUs run in a stable state with constant voltages and sufficient cooling, which is better for the hardware than temperature and power fluctuations from gaming.
Gamers celebrate
PC gamers have reason to smile now that the hype surrounding crypto mining has gone (for the time being, at least), as graphics cards are now more pretty affordable. In the west, where graphics cards are still in strong demand, prices have remained high as a result of supply chain disruptions.
