GPUs are abandoned by crypto miners as token values fall
The decline in token price has prompted a mass flight of GPU miners, resulting in an abundance of graphics cards.
According to PC Gamer, a rising percentage of cryptocurrency miners are selling their GPUs as token values decline during the bear market.
As the market becomes crowded with available products, the cost of graphics cards has decreased steadily.
In their analysis of European prices, Tom’s Hardware discovered disparities in pricing across European manufacturers. AMD goods are presently 8 percent below retail price, whereas Nvidia products are still 2 percent over retail price on average.
However, gamers, who have long grumbled about being priced out of the market, will be pleased with the development.
Bitcoin mining is fragmented
The growth of crypto mining, namely the proliferation of Application-Specific Integrated Circuits (ASICs), has split digital asset mining into two separate factions.
The first group consists of multinational mining corporations with vast means and the ability to shift operations wherever circumstances, such as power costs and governmental backing, are most advantageous.
Some folks see cryptocurrency mining as a lucrative pastime. Despite this, they are often unable to mine ASIC tokens such as Bitcoin because of the fierce competition from the first group.
At least in the past, enthusiast miners could participate by mining non-ASIC currencies using GPUs, including Ethereum, Monero, Ravencoin, and Ethereum Classic, among others.
Analysis of the Ethereum hash rate reveals a dramatic dip to 925 TH/s, an 18% decrease from the all-time high of 1,127 TH/s on May 13.
The decline shows that miners are quitting the network, although the reason is unknown. In the case of Ethereum, the shift to a Proof-of-Stake (PoS) consensus mechanism will make mining harder and unprofitable, a phenomenon known as the difficulty bomb.
As the Proof-of-Work (PoW) and Proof-of-Stake (PoS) Merge approaches, this aspect weighs heavily on the minds of miners. Concurrently, dropping token values and increasing global energy costs are also relevant factors.
Similarly, Monero’s hash rate exhibits a precipitous decline. The maximum hash rate for Monero was 3.22 GH/s on February 4, however, it has subsequently decreased by 29 percent to 2.30 GH/s.
Monero, unlike Ethereum, has no intentions to migrate to a Proof-of-Stake (PoS) network, indicating that the GPU mining exodus is industry-wide and solely motivated by economic concerns.
Until the next bull market, gamers have little reason to blame GPU miners for inventory shortages and price gouging.