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Crypto is a broad and complicated field. The big hype about it is currently declining – and with it mining. More and more used mining graphics cards are ending up on the market and the prices for graphics cards are falling and falling.
A recent report by Bloomberg reveals that crypto miners have poured roughly $15 billion into gpus since early 2021. The majority of graphics cards sold last year should not have gone to gaming fans, but to Crypto Bros.
“Ethereum miners have spent approximately $15 billion on graphics processing units (GPUs), according to Bitpro Consulting, and that doesn’t include ancillary costs like wiring and transformers.”
In 2021, crypto currencies such as Bitcoin or Ethereum reached an absolute high of almost 69,000 and 4,800 US dollars respectively. In the meantime, the value has fallen sharply and with it the incentive to enter the business.
Among other things, this is why the prices for graphics cards are falling back to a “natural” level. So more and more used graphics cards from 2021 are appearing on platforms like Ebay and Amazon.
In addition, as the value of GPUs falls, crypto miners cannot sell the used models for a profit. This leads to massive losses, since the tickets were usually bought very expensively.
To give an example, an NVIDIA GeForce RTX 3090 sold for just under $3,500 in 2021; today, used prices are hovering around the $1,000 mark.
“Miners won’t be left with nothing. After the Merge, their mining setups will still be powerful computing devices that can be put to use elsewhere, and some are planning to mine other coins or find alternative uses for the gear. After the Merge, Petzold is considering using his rigs for an aspect of digital video production known as rendering, which can require significant computing resources. “There are other uses for the cards: You can make it into a render farm, you can do different machine-learning options,” he says. “They are just not going to be as profitable as mining has been.”
Some miners are hoping to do better by moving to mine other coins that require GPUs, such as Ethereum Classic or Ravencoin. The more miners who flock to any coin, the harder it is to make a profit.”
The falling prices should also make it difficult for the manufacturers (AMD and NVIDIA) to sell new graphics cards. That’s why we’re seeing more and more deals and game bundles to make the new models more attractive. There are also rumors that because of this, the release of many new models will be delayed. The market is currently saturated with used models.
Of course, this is just a snapshot and crypto miners and bros certainly have plenty of reasons to disagree. Nevertheless, it is a positive trend for gamers and a good opportunity to buy a used graphics card.
What are your current thoughts on the graphics card market? Are you planning to get a new graphics card in the near future? Let us know what you think about it in the comments!