news material Bitcoin is crashing, and graphics cards are selling by the pallet!
Currently, Bitcoin is at €19,000, a colossal collapse for several months now. Other cryptocurrencies did not take long to follow suit, such as Ethereum which is at 1030€. With massive investment from many companies and individual projects, graphics cards will sell in pallets to mine this famous cryptocurrency. But everything is collapsing, and miners have to recoup the cost of their infrastructure by reselling all their graphics cards.
Colossal investments, and a fall that is just as big
It is estimated that over the past 18 months, Ethereum miners have spent no less than $15 billion. A huge sum dedicated to the purchase of graphics cards to equip their cryptocurrency farms.
Both Ethereum and Bitcoin have become the most popular cryptocurrencies for investors, but also the least stable. According to a study by the JPR Institute from June 2021, an estimated 25% of graphics card sales are dedicated to feeding cryptocurrency farms.
The backlash hurts, sometimes very badly, to the point that some companies specializing in tracking and mining cryptocurrencies have had to make massive layoffs to avoid being underwater. This is the case of BlockFi, a cryptocurrency lending and borrowing platform. No fewer than 260 people were made redundant, or 5% of the company’s total workforce.
If big companies are starting to suffer the consequences of the fall of cryptocurrencies, imagine the more independent groups, which have much less means than big platforms.
But there is no one to fire, so the solution is obvious: resell the graphics cards.
Graphics Cards Are Selling In The Thousands As Cryptocurrency Falls
Cryptocurrency prices are a real roller coaster. If prices were able to rise extremely high for a time, the fall is all the more painful, especially for those who have started investing recently.
Bitcoin is no longer in good shape, and the others are happy with it. To cushion the loss of investments made by mining farms, many miners will begin to sell their graphics cards massively, or even offer them for sale on forums, especially in China.
Many farms have sprung up in China over the past few years, and miners have taken to forums like Baidu to resell their precious graphics cards.
On these forums, you can find relatively low card prices, but beware, buying a GPU that has been running for several months is a very bad idea. Even though the prices can be very attractive, these GPUs are very used and have surely lost more than half of their initial power.
The cryptocurrency is collapsing, but the shortages are slowly starting to subside, you will finally be able to find RTX graphics cards at their recommended retail prices.