News hardware The Incredible Spend Cryptocurrency miners buy graphics cards
15 billion dollars: this is the colossal amount spent in 18 months by cryptocurrency miners to acquire the graphics cards necessary for their small business, which lately tends to take on a lot of water.
The global pandemic has had dramatic consequences on many global markets. Among these, there is that of computer components, and more particularly that of semiconductors. A shortage that has had cascading consequences in the sectorand which has led to significant slowdowns in the production of graphics cards at Nvidia and AMD.
Results: GPUs have become rare on the market. But there was another problem: the few graphics cards available for sale were bought in bulk by cryptocurrency miners, who used bots to get their hands on huge, often full-priced titles. Bloomberg today reveals a colossal amount relative to this specific market.
15 billion dollars spent in 18 months
Within a year and a half, Ethereum miners would therefore have spent the figure of 15 billion dollars buy GPUs to power their cryptocurrency farms. A spectacular expense that does not take into account the purchase of the rest of the equipment, and which focuses on a single cryptocurrency: we are not talking about Bitcoin and other currencies. The fact is that Ethereum was, until recently, one of the most popular among miners around the world … until its price decided to plummet.
In June 2021, the JPR institute estimated that 25% of graphics cards sold on the market during the first quarter of last year were intended to integrate cryptocurrency mining farms, with a market value of half a billion dollars at the time. An already significant observation, but which only worsened in the following months, with spectacular price spikes and the need to extract more and more to reap more profits.
Excessive buying yesterday, reselling today
There is, however, one point that cryptocurrency miners didn’t see coming: the spectacular collapse of the main virtual currencies in the market. In recent weeks, the price of Bitcoin has gone from $ 67,000 to $ 18,000, and that of Ethereum has dropped from $ 4,800 to $ 960.
From now on, many are those who, after having bought graphics cards for months at indecent prices, are now trying to resell them to limit their losses. But the drop in the price of cryptocurrencies also led to a drop in the price of newly sold GPUs. In fact, fewer interested miners, less sales, then prices revised downward by retailers who want above all to sell their shares.
Graphics cards from mining farms don’t have a good reputation, to the extent that they can be quickly consumed by walking Buying a second-hand GPU that’s been used for it therefore poses the risk of having a faulty component, and many people go through the shift at the slightest doubt. Why risk buying a potentially faulty graphics card being usedwhen can you now find it at a reasonable price in a new version?
Aware that they will never recoup their costs by reselling their purchased GPUs at full price, some miners have decided to switch to other cryptocurrencies, like Ethereum Classic or Ravencoin, hoping for better days. But “The more miners pour into a cryptocurrency, the harder it is to make a profit”, Bloomberg recalls. In the meantime, it is clear that we have never seen so many second-hand graphics cards available on the market, and unless cryptocurrency prices start to rise very quickly again, the trend is likely to increase further in the months to come. .