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If you constantly follow crypto news, you will also be aware that there are diverse major coins including BTC and ETH whose prices drop significantly.
Thus, when such a drop in price occurs, it likely prompts many miners to sell their equipment, Primarily GPUs, because the amount of operating costs is no longer generally understood at the low cost of crypto. You can check this website to learn more about bitcoin trading.
Will this news about GPU mean its demand in the market? Can GPUs now be purchased at or near MSRP from any retail store? So, let's find out what kind of impact the recent event has had on the PC hardware market.
What is causing the rising in GPU prices?
Two main factors drive prices, one which is supply and the other excess demand. In the year 2020, when the global pandemic broke out, the chip makers at that time faced a huge hit, especially in China, because of the high number of workers there. In addition, as the disease spread rapidly, shipping lanes and ports around the world were blocked, and countries closed borders to prevent the disease from entering their countries.
However, a lockdown was imposed by governments to avoid the epidemic, due to which many businesses were closed, and most people became unemployed. However, many people had to work from home. Similarly, during that time, many people began to focus on mining crypto, with BTC and ETH being the most attractive. If we talk about the price of bitcoin, during the pandemic lockdown with the loss of many jobs and other global events, its price rose from around $6,000 to more than $55,000 a year later. The nearly tenfold growth of bitcoin led to further hype for cryptos that rely entirely on GPUs for processing. The reason for the rising GPU prices is the lack of supply.
Crypto Crash
The price of bitcoin was at an all-time high of around $60,000 at the end of 2021, but nearly two months later its price fell to $36,000, a little over half of that. Given this decline, mining was abandoned by miners who had high electricity costs or were not investing much in the system.
A major crypto crash occurred in June 2022, where many cryptos saw a huge drop. If we talk about bitcoin, then its price fell by about $ 20,000. On the other hand, talking Ethereum, its price saw an all-time high of around $4,800 in November 2021, which was followed shortly after by its price decline till June 2022 in which it fell below about $1,000, after which Its balance stabilized.
Currently, GPU prices across the country are heavily impacted by low demand from miners. However, many entries- and mid-level video cards are still priced higher than their SRP.
Testing Before Purchasing Old Crypto-mining GPUs
The crypto crash has resulted in increased production by producers and easing global restrictions that are slowly easing the GPU woes. Also, we look forward to seeing the balance at the video card supply end hit and return to normal if there are no other international events of any kind in the times to come.
If you already have a GPU available, you're in luck, because you don't have to spend a lot if you want to get one. However, if you don't have an urgent need, you can also wait for some time until the prices drop to SRP or even lower and at the same time distance yourself from old crypto mining hardware.