Crypto miners in China are quickly selling their GPUs, signs of crypto demand falling

Written by Chad Norton on Thu, Jul 1, 2021 4:29 PM

China is currently the world’s leader in crypto mining, with the highest total hash rate of any other country. But recently, the country has been clamping down on cryptocurrencies, and it seems to be having a major effect on graphics card prices and availability across the world.

GPU prices have recently been falling across Europe, and the correlation between the drop in prices lines up quite well with the drop in demand for crypto miners. That is to say that the recent cryptocurrency boom has played a large part in the recent GPU crisis, along with the global chip shortage of course.

So with China cracking down on cryptocurrencies, many miners have apparently begun to sell their graphics cards in bulk online, and at pretty affordable prices too, though that’s not to say anyone should buy a graphics card for gaming that has been running 24/7 at high temperatures.

Various Chinese sites have reported on the prices for these GPUs, mentioning an RTX 3070 that is being sold for $3,120 Hong Kong Dollars (HKD), which is just over $400 USD. That’s not that cheaper than MSRP ($499) but is much cheaper than the prices retailers were offering for the same GPU brand new.

It could be a good sign for everyone, as GPU prices and availability will continue to improve across the world, opening up more stock to people who will actually use them and bring down the ludicrously inflated prices. But it equally could be a short dip in the market, before we inevitably face the same crisis a year or two down the line.

Either way, right now it’s a good thing and we’ll just have to wait and see how the situation goes in the future. Hopefully we’ll begin to see graphics card prices return to normal by the end of the year, and increase availability too.

What do you think? Is this just a dip in the market? Will the crypto boom start again soon? How are GPU prices and availability looking in your region now? Let us know!

Do you think we are currently in a crypto mining dip?

Will the cryptocurrency boom return?

Login or Register to join the debate

Rep
57
Offline
12:23 Jul-02-2021

I wonder how long until next crypto boom :/ (i understand this one is not blown over yet)

1
Rep
191
Offline
junior admin badge
13:58 Jul-03-2021

3 years would be my guess.

0
Rep
57
Offline
14:59 Jul-03-2021

yeah from the past it seems so.
Btw why im being downvoted? lmao

1
Rep
191
Offline
junior admin badge
17:46 Jul-03-2021

If I'd have to guess it's cancel culture.

1
Rep
57
Offline
18:32 Jul-03-2021

possibly, i understand the frustration and i sympathize with those who desperately need new or just usable gpu, but some people are sooo salty about it, that anything you mention related with that raises endless negativity, winging and whining.

2
Rep
76
Offline
admin approved badge
19:48 Jul-03-2021

I don't think it ever fully will be blown over. So I would expect it to return every 3 years, give or take one year, probably like every 2 to 3 generations of graphic cards. As for downvotes, feels like people like to downvote anything that doesn't agree with their fantasy, for me it was when I said Cyberpunk was bad and people desperately needed it to be good and CDPR to be PCMR champion.

1
Rep
57
Offline
20:34 Jul-03-2021

yeah Seth, i think the game debate REP system is not that good since anyone can give you thumbs down and that is commonly misused. It is NOT agree/disagree button. It is for user's behavior and usefulness in game-debate discussions. I personally gave about 2-3 thumbs down since i used this website and it will be soon 10 years since i been active user in this website.

1
Rep
191
Offline
junior admin badge
02:20 Jul-04-2021

@Gerulis20
Well said. I think I've used the downvote button maybe 2 (1 was for a bot lol) times in all my time on GD.
Btw the agree/disagree button isn't a bad idea.
hmmm

0
Rep
57
Offline
14:42 Jul-04-2021

yeah haha agree/disgree would be nice

1
Rep
191
Offline
junior admin badge
21:23 Jul-04-2021

Posted it in our Discord.
So far most people seem to like the idea.

2
Rep
57
Offline
14:05 Jul-05-2021

nice! :)

1
Rep
1
Offline
07:20 Jul-02-2021

But didn't the Chinese government come down on crypto and that's why they are selling them?

0
Rep
37
Offline
09:23 Jul-02-2021

That is EXACTLY why

0
Rep
1
Offline
09:26 Jul-02-2021

So unless we want used gpus from China nothing will change everywhere else.

0
Rep
191
Offline
junior admin badge
10:44 Jul-02-2021

The Chinese crackdown on crypto has the knock on effect that all over the world GPU prices are dropping (faster in some places than others).

0
Rep
1
Offline
10:46 Jul-02-2021

But wouldn't scalpers just scalp them and resell them at bonkers prices?
I haven't seen prices going down at all here.

0
Rep
37
Offline
18:46 Jul-03-2021

Time will tell how things will go honestly. Don't be in such a hurry because the market isn't that fast either way.

0
Rep
76
Offline
admin approved badge
19:51 Jul-03-2021

Scalpers will entirely depend on supply. As long as nVidia and/or AMD can keep stock in shelves, they will move on to scalp whatever is next rare thing. I don't really think incoming supply is bad enough for scalpers to just buy everything, plus I think slow decline in price is helping too, if it dropped immediately to MSRP, scalpers would buy it. But overtime, there will be too much stock.

0
Rep
-19
Offline
20:52 Jul-03-2021

if people stopped buying from the scalpers and didnt buy these used crypto gpus, the prices would fall faster. people looking at these cheap gpus are keeping the new ones artificially higher. make everyone suffer and the prices will drop.

0
Rep
1
Offline
11:27 Jul-04-2021

7nm is oversaturated even without mining.

0
Rep
191
Offline
junior admin badge
14:21 Jul-04-2021

Purportedly 3nm will be in production around 2022.

0
Rep
76
Offline
admin approved badge
22:51 Jul-01-2021

Great, as long as price drops enough below MSRP I would buy used one, like sure it might went through some worse times, but then again, I need it to survive for 3 years, not like a decade. Though we will see where prices go... my region usually is bit behind. Plus cheap used cards will also effect new prices... they can't scalp on retail, if people just switch to cheap used market.

1
Rep
76
Offline
admin approved badge
22:53 Jul-01-2021

At least that is why it took AMD forever to replace RX580... mining crash happened, flood of used cards came and retailers had hard time selling. But cheap card like 3060Ti would indeed make me happy. Not overly huge power consumption, plus it works well for 1440p, which I will upgrade to once I get new card.

0
Rep
105
Offline
02:30 Jul-02-2021

Good luck trying to find an used gpu below its MSRP this year xD

0
Rep
76
Offline
admin approved badge
03:12 Jul-02-2021

Yeah, I am not expecting it to be soon, just keeping an eye on it... :-D For now, I am just amazed to see stock. Overpriced stock, but at least now I actually use other filters too. Before I just filtered by availability of all graphic cards and got list ranging from 0-3 and few GT710.

0
Rep
7
Offline
22:21 Jul-01-2021

I would rather buy new GPU for 499$, than used for 400+. Can't even imagine at what conditions those poor things had to run 24/7.

2
Rep
272
Offline
admin approved badge
23:56 Jul-01-2021

Undervolted, well-cooled and usually underclocked for the most power efficiency. I'm guessing this is not what you imagined, but that's how we (and even big-time miners) do it, because nobody wants to kill the cards, nor pay more for power than necessary.

8
Rep
7
Offline
23:12 Jul-02-2021

I see, well can't know everything :)

0
Rep
272
Offline
admin approved badge
23:52 Jul-02-2021

It's all good! There are a lot of misconceptions about mining that spread, so it's not always easy to know what's what unless you actively look into it

0
Rep
1
Offline
07:07 Jul-05-2021

Or if you are the mining farms in my country they are overvotes, overclocked and have dying fans and leaky VRMs XD

0
Rep
272
Offline
admin approved badge
11:46 Jul-05-2021

What kind of a make-shift mining bunker would that be? xDD

0
Rep
20
Offline
23:59 Jul-01-2021

I would rather get a used card from a miner than a used card from a gamer

2
Rep
105
Offline
02:32 Jul-02-2021

I would rather get a new gpu, love the smell of new components, dont know if this is weird tho :P

4
Rep
191
Offline
junior admin badge
10:45 Jul-02-2021

It's not

0
Rep
272
Offline
admin approved badge
12:14 Jul-02-2021

It's like the smell of a new book

0
Rep
-8
Offline
18:23 Jul-01-2021

If cryptocurrency is as "dangerous" as I am led to believe, then it should definitely be illegal.

3
Rep
272
Offline
admin approved badge
18:51 Jul-01-2021

I'd be interested in this "danger" you speak of, because taking control away from centralized sources (such as...wanker bankers...) is only a good thing, not to mention the huge benefits of blockchain technology in general (such as decentralized services, like encryption, escrow, etc).

2
Rep
-6
Offline
19:08 Jul-01-2021

you are only speaking positively about crypto because you are invested into it, I on the other hand see it only as a greed based thing, where you make your profits based on how much computer tech you can hoard and that creates chip shortages in a long term. Crypto is too unstable to be trusted, but you can trust bank

4
Rep
191
Offline
junior admin badge
19:39 Jul-01-2021

Monetary gain is almost always a factor, in almost every aspect of "modern life". Not saying it's right, but that's the world we live in (for better or worse).
Having said that, I believe you're mistaken about Xquatrox. He has an open mind and is willing to consider other peoples point of view. He is also someone who will stand by with his believes and isn't easily swayed.


As for the crypto matter, early adopters usually profit from being there first. These days you can't profitably mine Bitcoint with GPUs (you need an ASIC for that) and there are several other caveats that impact the chip shortage, not just mining.


Now regarding the matter with trust. Why do you trust a bank?
They can, for the most part create money out of thin air (speaking from a US based perspective, Federal Reserve and such) and you have to work for that which they create out of nothing. I'm not saying crypto is perfect, but it has the potential to give some control back to the people.


I'll end this wall of text with a simple question for you.


What is value?

3
Rep
272
Offline
admin approved badge
23:50 Jul-01-2021

@Zygisrudys - Being invested into it also means that I'm not just blindly bashing it for the sake of some online brownie points. There are a lot of VERY interesting ideas on how to utilize the blockchain and they are not necessarily "greed" - they just need spare computing power and a distribution of the network to effectively run on. People who spare the computing power for the particular tasks (be it long-term storage like filecoin or chia, or financial services and smart contracts like etherium) get rewarded for it. That's all it is.

2
Rep
272
Offline
admin approved badge
23:53 Jul-01-2021

Crypto and blockchain technology are not born of greed and are extremely useful platforms for a wide variety of people. The fact that some people made a quick buck out of it is just humans being humans and deciding what's worth what on their own - it's not like there's a bank that dictates how much crypto tokens cost, LMAO. Nor do people like me magically "contribute" to the shortage you so so hate (yet won't buy anything anyway) - I contribute with my existing parts, as do many others.


In short - you have no clue what you even hate here.

2
Rep
11
Offline
17:42 Jul-01-2021

This is a cause for celebration!

2
Rep
-12
Offline
17:15 Jul-01-2021

checked again after seeing this article and the powercolor red devil 6900xt LE has gone from 1499, 1589 to now 1699 in a month, stock and price here in UK dont seem to getting much better

2
Rep
22
Offline
18:00 Jul-01-2021

There will probably be a delay for the price change. There is also probably many who didn't buy, who wanted to (gamers), and they will be still eager to get a GPU. But I am probably wrong. Mining wasn't banned in the UK like China...so the price change won't be so aggressive.

5
Rep
-6
Offline
19:10 Jul-01-2021

it's the same as it happened the first time in 2017 it will take more time, first used cards have to flood used market, prices never drop in just one day lol that would be ridiculous and the shops only drop prices after a few months

0
Rep
-12
Offline
19:17 Jul-01-2021

no but im seeing the oppersite there, its gone up by £200 since i bought mine. luckily i didnt pay those prices either.

0
Rep
272
Offline
admin approved badge
23:54 Jul-01-2021

@Zygisrudys so which models are you looking into when the price drops? I'm so so curious...

0
Rep
191
Offline
junior admin badge
16:38 Jul-01-2021

Heard about that just recently.
Guess China is at it again.

0

Can They Run... |

| 60FPS, Ultra, 1080p
APU A8-6500 Quad-Core Radeon HD 8570D 8GB
100% Yes [1 votes]
| 30FPS, Low, 1080p
Core i7-4700MQ 4-Core 2.4GHz GeForce GT 755M 16GB
| 30FPS, Low, 720p
APU A6-5200M Quad-Core Radeon HD 8400 8GB
Core i3-8145U 2-Core 2.1GHz UHD Graphics 620 24GB
Core 2 Duo E7200 2.53GHz GeForce 210 2GB
0% No [1 votes]
| 30FPS, Low, 1080p
Core i7-7500U 2-Core 2.7GHz GeForce 940MX 2GB 8GB
0% No [1 votes]
| 60FPS, Ultra, 1440p
Core i9-9900K 8-Core 3.6GHz GeForce RTX 2080 Ti 64GB
100% Yes [1 votes]
| 60FPS, High, 720p
Core i3-4130 3.4GHz Radeon HD 6970 4GB
50% Yes [2 votes]