The long-awaited change of Ethereum to proof-of-stake has had an even bigger effect on the cryptocurrency industry as a result of the slowing down of the use of graphics cards in crypto mining. The Ethereum Merge that took place earlier this month, the cost of graphics processing units (GPUs) in China has fallen to its “lowest level ever.”
According to SCMP’s September 25th publication, the suppliers of graphics cards in China have reportedly seen price drops for mid-range and high-end devices over the course of the last two months.
After ETH could be mined and the bull market was in full swing, the demand for Nvidia’s premium GeForce RTX 3080 and 3090 models drove suggested retail prices to treble. This occurred once the bull market was in full swing.
However, shops operating in Shanghai’s electronics retail industry assert that demand and prices have decreased by around 40% over the course of the preceding three months.
The unique properties of GPUs that make them well-suited for hashing, as well as the complex computations that are used for mining on proof-of-work blockchains, tend to cause the price of graphics cards, which are normally used for video games, to rise in tandem with the price of cryptocurrencies. This is due to the fact that mining cryptocurrencies on proof-of-work blockchains requires a significant amount of processing power.
There are a number of companies that produce graphics cards independently for the market, such as Gigabyte, Asus, and Micro-Star International (MSI), but the two companies that dominate the market are Nvidia and Advanced Micro Devices, and almost all of the other companies use GPUs made by those two companies.
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