Dip in crypto mining drops Nvidia graphic card prices
- Reports suggest one-third of the consumer market might be wiped out
- Gamers will be able to buy graphic cards without paying a premium
- Nvidia has made their cards less crypto mining friendly
The current prices of crypto have become so unsteady and mining has become unsteady enough for miners for to start dropping a key component of their systems, Nvidia’s gaming graphic cards.
Ethereum has a role to play in why crypto miners seem to be leaving the “mines” in droves. The blockchain network has shifted to a new method called proof of stake, i.e., cryptocurrency owners must validate a transaction based on the number of coins a validator stakes. The method uses significantly less computing power and is widely considered to be less risky.
Earlier, when the crypto boom first started, miners found that graphic cards designed to play games at high fidelity could be used to create crypto tokens, setting off a mad rush to buy up available graphic cards. These cards became worth their weight in gold, being key in the generation of cryptocurrencies. Nvidia, to their credit, tried to limit the purchase of their extremely powerful and popular cards, to little effect. Miners set up bots to quickly snap up the components at market rate. Not long after, these cards became to pop up on secondary markets like eBay.
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Now that crypto is struggling, miners are dropping their cards at an alarming rate, but that’s a good thing for gaming consumers. Miners are looking to get rid of their hardware as fast as possible, selling at bottom of the barrel prices. Nvidia’s suggested retail prices haven’t changed, but cards are appearing for as low as 50% of their original price. According to a Bloomberg report, one-third of the graphics card market could just vanish overnight.
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Nvidia has had constant run-ins with crypto in the past. In 2018, the company blamed the digital currency for the trouble it was having meeting forecasts. Shares tanked by 20% in two days. In order to avoid this, the company has been making their gaming graphic cards less effective at mining. Though now, with the market for graphic cards the way they are at the moment, gamers can finally get their hands on premium hardware without paying exorbitant prices.