Prices for GPUs in China Plummet Following Major Crypto Mining Shutdown

Illustration for article titled China's Crypto Crackdown Could Help Usher in a Return to Sanity for GPU Prices

Photo: Justin Sullivan/Getty Images (Getty Images)

Finding new graphics playing cards at cheap costs has been nearly inconceivable as of late, however that is likely to be about to vary after costs for GPUs in China fell by as a lot as 66 p.c following plenty of crypto mining shutdowns throughout Sichuan, Xinjian, and Inner Mongolia.

According to a current report by the South China Morning Post, China’s current crackdown on cryptocurrency is wreaking havoc on crypto mining operations all through the nation, ensuing in plummeting demand for graphics playing cards and main value drops for GPUs throughout plenty of China’s largest on-line retailers.

The SCMP discovered that at present, the going value for an Asus branded Nvidia RTX 3060 GPU was simply 4,699 yuan (about $725), down from highs of 13,499 yuan (about $2,085) seen as not too long ago as early May. And whereas a value of round $725 continues to be double Nvidia’s typical MSRP of round $330 for an RTX 3060 card, that’s nonetheless an enormous drop in value in just a little over a month.

Though Nvidia’s line of Quadro playing cards aren’t often focused at normal customers, the SCMP additionally famous that costs for an entry-level Quadro P1000 GPU dropped from round 3,000 yuan (about $465) to 2,429 yuan (about $375) over the identical interval.

The driving drive behind China’s falling GPU costs is China’s current choice to ban monetary establishments and fee companies from supporting cryptocurrency, successfully outlawing using Bitcoin and different crypto cash from getting used as authorized currencies, whereas additionally prohibiting on-line exchanges from changing crypto into conventional fiat cash (or vice versa).

Additionally, with China trying to scale back carbon emissions and higher handle its electrical energy technology, plenty of energy crops in Sichuan and different areas not too long ago reduce off energy to plenty of crypto mining operations, taking large swaths of mining rigs offline.

Naturally, this has brought on a ton of volatility in the crypto market, with the worth of main crypto cash like Bitcoin and Ethereum falling by as a lot as 50% or extra since hitting all-time highs again in mid-May. Though the costs for GPUs exterior of China haven’t dropped fairly as dramatically, there may be some indication that GPU costs right here in the U.S. are beginning to get well as properly.

Just final week, the most recent version of Tom’s Hardware’s GPU pricing index confirmed that the costs for present playing cards had fallen someplace between 4% and 12% throughout the first two weeks of June, relying on the precise mannequin. That stated, with playing cards like Nvidia’s RTX 3070 and AMD’s 6800 XT nonetheless going for double their MSRP, it’s going to be some time till costs strategy something most individuals would name regular.

However, between China’s crypto crackdown and the current launch of latest GPUs from from Nvidia earlier this month, it appears we would lastly be capable to see some gentle on the finish of the tunnel.

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About the Author: Daniel