The Merge changed Ethereum’s protocol consensus from PoW to more environmentally friendly PoS. However, it did cause some damage to some people. Specifically, it is hurting GPU companies that are making a lot of money on demand from ETH miners.
Due to low demand from miners who used to buy expensive cards like GeForce RTX 3080, RTX 3080 Ti, or Nvidia’s RTX 3090, suppliers had to suddenly cut the price of GPUs by three times the value proposed by GPU factories.
Due to low demand from miners, high-end GPUs like the RTX 3080 have dropped more than 37% in the past three months, from 8,000 yuan ($1,140) to less than 5,000 yuan ($712), Peng, a trader in the Shanghai market, told SCMP.
According to Peng, this whole situation could continue due to a number of negative scenarios surrounding the crypto market, such as the crash of Bitcoin, China’s mining ban, and even new COVID-19 lockdowns, which have only made the situation worse.
“When the wave of Bitcoin mining was at its peak, people from the mining companies just walked in the stores with cash and took away all the graphics cards we had in store. But now look at the stores. No one is buying new computers because of the coronavirus, not to mention those who want to install a new graphics card.”
Another trader named Liu said that Ethereum Merge was the cause of the collapse in the price of GPUs, as, two months before The Merge happened, even the cheapest low-end GPUs started to drop more than 50% causing miners to sell their hardware at a substantial loss.
Cryptocurrency mining (especially ETH mining) has driven the price of GPUs over the past few years; however, the price gradually dropped sharply as Ethereum Merge approached.
According to SCMP, graphics card traders at Buy Now, one of Shanghai’s largest local electronics markets, are having a headache as they witness the euphoria of miners after the Ethereum Merge takes place.
In just a few weeks, Chinese retailers have reduced the suggested retail price of GPUs by more than 33% due to two reasons: The correction of the GPU market and the crypto crisis.
Contrary to miners, currently, gamers, designers, AI programmers, and even astronomers can have small smiles on their faces.
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