Graphics processing units (GPUs), often used for mining cryptocurrencies like Ether (ETH), have seen price drops in China. This is because of the Ethereum networks transition to a proof-of-stake (PoS) consensus method, attracting institutional investors.
According to a revelation in the South China Morning Post, prices for Nvidia GeForce GPUs have dropped dramatically after the historic Ethereum Merge on September 15. Chinese businessman Peng used the RTX 3080 as an example, noting that the GPU’s price plummeted from $1118 (or 8,000 yuan) to 5,000 yuan in only three months.
Peng claims that at the height of Bitcoin (BTC) mining in China, mining businesses went on buying binges of graphics processing units (GPUs). But the merchant lamented that there was a complete lack of interest in modern PCs and GPUs at the time.
Similarly, another merchant named Liu noted that low-end RTX 3080 cards from manufacturers like MSI had reduced in price by roughly 2,000 yuan in the last two months. Liu speculates that the excitement around the Ethereum Merge might have a significant impact on the market.
In-store businesses aren’t the only ones feeling the pinch of falling sales. GPU costs have been going down on both Taobao and JD, two popular Chinese e-commerce websites. Over the last three months, the price of RTX 3080 cards on various marketplaces has decreased by several hundred yuan.
After the Ethereum Merge, the blockchain shifted from its energy-intensive proof-of-work (PoW) mechanism to the proof-of-stake (PoS) layer known as the Beacon Chain. This allows ecosystem members to stake ETH and take over the role of miners in processing transactions and creating blocks.
Don’t worry, we hate spam too
one weekly digest, just the important stuff.
How about some social? Follow us on Twitter!