During the last weeks, the price of the main cryptocurrencies such as Bitcoin Y Ethereum It has only gone down; for example, in the last month the price of Bitcoin has fallen by 15.88%, while Ethereum has seen its price drop 24.92% in the last month. And this last data is especially important, because while Bitcoin is currently only mined with specialized ASICs, Ethereum is the main focus of users who mine with the graphics card and it is the crypto that has dropped the most precisely.
Large mining farms in Asia shut down
According to a report by China Business News, after the withdrawal of digital currency mining projects in Inner Mongolia, Quinghai and Sichuan, many large mining farms have been closing their doors one after another. It should be noted that Sichuan is the most important mining farm gathering place in the world, with approximately 8 million kilowatts of electricity destined for mining.
According to this report, since 00:00 on June 20 (Asia time) each and every one of the Sichuan mining farms has been shut down, and from the data consulted by OKLink this has already caused that in the last 24 hours the Ethereum mining power It has fallen by more than 7%, generating an immediate impact on the price of the cryptocurrency that has fallen by almost 25% in the last month and everything indicates that it will continue to fall much more.
Many famous gamers in Asia are already chanting that the “mining disaster” has arrived, and yet the facts are not so optimistic at the moment since although it is true that a certain drop in the price of GPUs is already beginning to be noticed in stores, it has not yet fallen drastically to catch up with manufacturers’ recommended retail prices and, in fact, we continue to have a shortage situation. However, of course it is still a bit early for this blackout of mining farms to be reflected in the price at which GPUs are sold … or not?
The price of GPUs begins to fall
During the month of June, mining in several large centers of Asia has started to decrease and the price of graphics cards has started to fall (we take Asia as a reference since that is where the largest number of farms are concentrated in mining and stock of graphics cards, so what happens there is an indication of what awaits the rest of the world), although for now not enough.
If we take as a reference an RTX 3070 whose official price is 3,899 yuan, most Chinese e-commerce platforms sell them at a price of around 8,000 yuan, more than double what they should cost. According to Chinese media, the argument that there is a shortage of chips is not justified since according to the data published by the Jon Peddie Research agency, the shipment of graphics cards during the first quarter of the year reached 119 million units, which means a growth of 38.78% compared to the same period last year.
According to this same agency, more than 700,000 graphics cards were monopolized by miners during the last quarter, which represents 25% of the total, but this means that there should be 2.1 million GPUs available to gamers. Where are these GPUs? Why do stores, including those in Spain, continue to sell gaming graphics cards at abusive prices?
We will have to keep waiting to see if this “mining disaster” is really taking place and professional miners stop hoarding stock of graphics, but in any case they are already showing less interest in GPUs and have turned off their mining farms is good news for the stock and especially the prices of the GPUs to return to normal.