China GPU prices drop to new lows after the Ethereum Merge

Because the Ethereum community’s transfer to a proof-of-stake (PoS) consensus mechanism drives adoption from institutional investors, the costs for graphics processing items (GPUs), typically used for mining cryptocurrencies like Ether (ETH), have gone down in China. 

Following the historic Ethereum Merge on Sept. 15, the beforehand extremely sought-out Nvidia GeForce GPUs have change into considerably cheaper, according to a report by the South China Morning Publish. Peng, a Chinese language service provider, gave the RTX 3080 for instance because the GPU’s value dropped from $1118, or 8,000 yuan, to five,000 yuan inside three months.

In keeping with Peng, when Bitcoin (BTC) mining was at its peak in China, mining corporations have been doing GPU buying sprees. However in the meanwhile, the service provider mentioned that nobody is shopping for new computer systems, not to mention new GPUs.

One other service provider referred to as Liu additionally highlighted that low-end RTX 3080 playing cards from producers like MSI additionally dropped by round 2,000 yuan in comparison with costs two months in the past. In keeping with Liu, this can be extremely influenced by the hype surrounding the Ethereum Merge.

The in-store retailers should not the one ones affected by decrease demand. On-line buying platforms Taobao and JD have additionally proven declining costs of GPUs. RTX 3080 playing cards on these web sites have slowly gone down in costs by a couple of hundred yuans in comparison with their costs three months in the past.

Associated: Possession of Bitcoin still legal in China despite the ban, lawyer says

After the Ethereum Merge, the blockchain transitioned from its energy-intensive proof-of-work (PoW) mechanism to the PoS layer referred to as the Beacon Chain. With this, miners that used to course of transactions and produce blocks are changed by ecosystem contributors who would stake ETH to become the new validators of the community.

In the meantime, a PoW fork referred to as ETHPoW, went reside because the Merge commenced. Nonetheless, regardless of its makes an attempt to retain the PoW consensus, it suffered technical points when it launched, reducing the price of its ETHW token by 65%.