The decline in cryptocurrency prices is causing Chinese miners to
Hardware

The decline in cryptocurrency prices is causing Chinese miners to increasingly sell their graphics cards

Internet cafes are very popular in China, where visitors can play games and chat online. However, due to the coronavirus pandemic and the ban on visiting such public places, the main income of these establishments has become cryptocurrency mining using video cards. Now a new misfortune has come – the decline of the cryptocurrency market. Now Internet cafes are urgently selling stocks of graphics accelerators.

    Image Credit: Baidu / Hassan Mujtaba

Image Credit: Baidu / Hassan Mujtaba

According to the VideoCardz portal, citing various sources, Chinese miners, resellers and internet cafes are trying to quickly sell their stocks of graphics accelerators by flooding various forums and marketplaces with such announcements.

It is noted that to stimulate sales, Chinese entrepreneurs even hold auctions with live video broadcasts, where you can buy, for example, the same GeForce RTX 3060 Ti for $ 300-400, and the GeForce RTX 2060 for $ 210, what about 50% cheaper than the prices they were originally purchased for. Against the backdrop of falling profitability from the production of the Ethereum cryptocurrency, as well as considering the increased availability and falling cost of new graphics cards at retail, all newly minted Chinese sellers were faced with a choice: use accelerators as soon as possible to buy bargain prices on secondary trading platforms and try to recapture at least part of their value immediately, or continue mining and hope for a rise in the price of cryptocurrencies. That’s right, at the current price of altcoins, it will only be possible to recover the cost of graphics cards in a few years and not in a few months as before.

    Image source: Baidu

Image source: Baidu

The desire to get rid of graphics cards quickly is also dictated by the news that the Ethereum blockchain’s transition to an updated energy-efficient Proof of Stake model is expected between the third and fourth quarters of this year. This leaves little time for miners to sell their stocks of accelerators.

Obviously, such auctions only attract the most desperate buyers, since the graphics cards offered there have previously been subjected to very serious stresses, beyond normal use. However, in most cases, sellers at least honestly admit that the cards were used to mine cryptocurrency.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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