700,000 graphics cards that shipped in the first quarter went to cryptominers

[defaultluser]

Everyone says "Just build more fabs," but the last time Nvidia increased production, they were left with millions in stock after ETH crashed.

with the future of ETH going proof-of-stake, I expect a similar crypto mining crash afterward (as nothing else is making you nearly that much money, nor is as widely accepted).

It may take a year for crypto to find it's new Golden Boy; at least for that year, I will finally be able to find Ampere for MSRP!

 

[terzaerian]

Everyone says "Just build more fabs," but the last time Nvidia increased production, they were left with massive stock after ETH crashed.

with the future of ETH going proof-of-stake, I expect a similar crypto mining crash afterward (as nothing else is making you nearly that much money, nor is as widely accepted).

It may take a year for crypto to find it's new Golden Boy.

Eth is not going to crash by going proof-of-stake, it will crash if they can't pull that transition off. In my experience, you also need something like at least 10 Eth to make close to what a 6800 or equivalent could pull in mining in a month, so there is likely going to be a mad dash to buy Eth for staking immediately before the transition. If they can't pull it off, that will be what injects uncertainty into the market.

Ethereum has the lion's share of DeFi and NFT applications, among other things, it's not going away anytime soon.

 

[defaultluser]

Eth is not going to crash by going proof-of-stake, it will crash if they can't pull that transition off. In my experience, you also need something like at least 10 Eth to make close to what a 6800 or equivalent could pull in mining in a month, so there is likely going to be a mad dash to buy Eth for staking immediately before the transition. If they can't pull it off, that will be what injects uncertainty into the market.

Ethereum has the lion's share of DeFi and NFT applications, among other things, it's not going away anytime soon.

I'm not talking about the currency crashing, but as the driving force behind mining GPU purchases, I expect a similar massive selloff of ETH- dedicated mining gear afterwards

Going to look quite similar ti the post-ETH crash selloff.

Back in 2016, Etherium was just in time to give former Bitcoin miners something else to do (after ASICs had priced them out), but today there is STILL nothing really kicking except Etherium. If they switch to stake, those million+ of dedicated mining GPUs sold in the last year have to do something

Even worse: if you don't have the spare Etherium stake to generate your current mining output, the only way you can afford more seed ETH is by selling GPUs

 

[HomeyBroDude]

I think the resellers selling directly to the miners are the real culprits in the GPU shortage. Bots/Scalpers are just an additional PITA to contend with.

 

[Austinturner]

Scalpers provide a service, they make products immediately available (for a higher price) were they would otherwise be scarce.

People seem to ignore that while scalpers have some inventory, they aren’t buying and holding. To realise profit they have to sell their cards to end users and they have to do it while there is the greatest demand and lowest inventory available…I.e. already gone or now.

They are often auctioning the cards so they are literally selling at the highest price the next consumer is willing to pay. Now retailers have upped their prices to the highest price consumers will pay, scalpers won’t be buying more cards because there is no profit.

Scalpers existed because the cards were sold below what they were worth to the market.

 

[scavengerspc]

No other industry besides tech could high demand cause gradually rising prices.

 

[defaultluser]

People seem to ignore that while scalpers have some inventory, they aren’t buying and holding. To realise profit they have to sell their cards to end users and they have to do it while there is the greatest demand and lowest inventory available…I.e. already gone or now.

They are often auctioning the cards so they are literally selling at the highest price the next consumer is willing to pay. Now retailers have upped their prices to the highest price consumers will pay, scalpers won’t be buying more cards because there is no profit.

Scalpers existed because the cards were sold below what they were worth to the market.

Bullshit. Every online retailer has a no-questions-asked 30-day return policy. So if for some crazy reason the resellerss market crashed tomorrow, the current holders of the product could still get their money back.

This gets even wore during winter shopping season, anything bought from Amazon after October 1st gets to sit in your inventory until January 30th

This easy returns make it possible for AAmzon to sell electronics uring the holidays, but asshols liek thes gamne the system (with no downsides, assuming they can take a fe dollars extra interest on their purchase.

The longer you can gum-up a supply chain th more desparate buyers will become But until they invented bots five years ago,, it was mostly only sustained during the first 3 months after release.

 

[Austinturner]

Bullshit. Every online retailer has a no-questions-asked 30-day return policy. So if for some crazy reason the resellerss market crashed tomorrow, the current holders of the product could still get their money back.

This gets even wore during winter shopping season, anything bought from Amazon after October 1st gets to sit in your inventory until January 30th

This easy returns make it possible for AAmzon to sell electronics uring the holidays, but asshols liek thes gamne the system (with no downsides, assuming they can take a fe dollars extra interest on their purchase.

The longer you can gum-up a supply chain th more desparate buyers will become But until they invented bots five years ago,, it was mostly only sustained during the first 3 months after release.

So…they only temporarily take it out of a retailer’s stock and return it if they can’t clear it? That doesn’t seem to invalidate my point that they aren’t a long term issue for supply volume. It creates some distribution inefficiency but they aren’t buying to hold like a crypto farm.

 

[gamerk2]

Yes in this case. This wakeup call has been ringing for years, and only now should suddenly be considered urgent? Is it healthy that almost all of the world's advanced semiconductors are now produced in two south-east Asian conflict zones?

Because unlike the US, those countries have chosen to invest Billions of dollars into themselves to build up an industry.

 

[Greg Powell]

Scalpers provide a service, they make products immediately available (for a higher price) were they would otherwise be scarce.

I'm not a gamer nor a miner but offer a collective "BiteMe" from the rest of the world....