Who benefits from “crypto winter”

According to Nikkei Asia, amid cryptocurrency mining, the price of graphics cards (GPUs), the computer component responsible for handling data-intensive activities such as gaming, has dropped by around 60%. compared to the highest level in 2021. In addition to detailed, smooth image processing for gaming, video editing or entertainment activities, the graphics card is also capable of solving large, appropriate calculations. with cryptocurrency mining.

According to data from Aucfan, graphics cards sold for an average of $144 in November 2022, down 60% from May 2021. The number of cards sold at auctions also decreased by 40% over the same period. BCN research shows that newly launched high-end models can push the average price of GPUs up but still 20% lower than 2 years ago.

According to Nikkei, card price fluctuations in recent years are proportional to the cryptocurrency market. While GPU prices are down 60% from their 2021 peak, Ethereum has lost 80% of its value and Bitcoin price has also dropped 80% from over $69,000 to $17,000. The spike in energy prices also puts additional pressure on cryptocurrency mining operations that consume a lot of energy.

Takeshi Kamada, CEO of price comparison website Kakaku, said that with current cryptocurrency prices, miners are almost not profitable. And gamers were able to freely choose their favorite card model without worrying about the product being overpriced many times. Even the sellers are optimistic about the current situation of the market.

A representative of Nvidia Japan said: “ Graphics cards are no longer reaching the audience of gamers as we intended, especially in early 2021. It is almost impossible for gamers to buy appropriate models because of the craftsmen. Cryptocurrency miners are willing to pay a higher price to collect this kind of components ”.

Nvidia has solved this problem by having to reduce the computing power of GPUs so that they are no longer effective in mining cryptocurrencies, such as the GeForce RTX 3060 released in February 2021. At the same time, the company also launched GPU products specifically designed for cryptocurrency mining.

By September 2022, when the Ethereum network successfully merged, switching from PoW (proof of work) to PoS (proof of stake), the graphics card mining industry officially plunged. According to experts, Bitcoin miners often use specialized machines, while Ethereum miners prefer to use GPUs due to their performance and suitable investment costs.

However, after this event, a large number of old graphics cards were released into the market. According to Nikkei, in 2023, card prices will become cheaper and cheaper, users will have more choices in both the genuine market and the second-hand market.

A representative of a retailer in Tokyo (Japan) said that during the peak period of 2021, graphics cards are always sold out. They have to import high-priced shipments but then have to sell them cheaper due to the falling cryptocurrency market.

“When gamers and video makers come to buy graphics cards, we can recommend and advise them with a lot of options, models are available, and prices are competitive,” said Shoki Hisasue, one-stop shop manager. computer goods in Japan, share.

Reference: Nikkei Asia