Graphic Processing Units Drop in China After the Ethereum Merge – crypto.news
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China’s graphics processing units have fallen to their lowest level today. The withdrawals come amid a consolidation in Ethereum, which is said to have been impacted by the drop.
The most dominant GPUs fall below the 37 percent mark
The crypto community celebrated the release of the Ethereum merger on August 15, 2022. According to Vitalik Buterin, the merger allows the system to function from Proof of work (POW) to Proof of Stake (POS). It reduces energy consumption, as was done before. Most users were excited, but they did not agree with the significant effects of the process.
The process has resulted in collateral damage among most GPU companies. ETH miners have been reported to cause graphic processing unit vandalism.
According to Asia-focused media reports, the South China Morning Post (SCMP), Ethereum’s consensus mechanism, caused GPUs in China to drop below 37 percent common. Research shows that the price decreased by 10% every week. These companies have always had a long time until ETH miners included default values in the program, causing sales to fall below levels ever seen in history.
The most expensive cards, such as the RTX 3080, RTX 3080 Ti or RTX 3090 and Nvidia’s GeForce, have launched unexpectedly. Vendors have been forced to lower GPU prices to strengthen their customers due to low demand from miners who often buy products from companies.
Ethereum merger causes setbacks for miners in China
Peng, a trading mogul in the Shanghai market, said that the RTX 3080 had fallen massively over the past three months below the reported bottom of 37%. According to reports, the drop comes from 8,000 yuan ($1,140) down to 5,000 yuan ($712).
In addition, he stated that the whole situation could continue due to the negative effects of the crypto market. As an example, the fall of Bitcoin since the beginning of April. Currently, there is less hope for a virtual currency revival, as digital currencies are more volatile and can sometimes be difficult to predict. In addition to the sarcasm of the cryptocurrency community, China banned mining and shutdowns due to covid 19, which crippled the economy.
“When the bitcoin mining wave was at its peak, people from the mining companies just walked into the stores with cash and took all the video cards we had in stock. No one is buying new computers because of the coronavirus, let alone those who want to install a new graphics card.
Another trader from the same region, Lieu, claimed that the Ethereum merger was the absolute trigger for the GPU price crash. In the first two months before the merge was released, gamers, developers, and crypto-enthusiasts were so concerned about the program that it changed GPU prices to below 50 percent of their normal speed. It caused miners who are no longer able to mine ETH to sell their hardware at a throwaway price.
“I had a customer who bought an RTX 3080 card for 9,400 yuan at the end of last year, and now he has to sell it for less than half that price, even though that model is not suitable for mining.”