Asus says demand for graphics cards used to mine crypto is disappearing

midian182

Posts: 7,789   +80
Staff member
In brief: Asus has confirmed what many in PC industry had suspected: demand for graphics cards used for crypto mining is "disappearing." That's the good news. The bad news is that demand for PCs is also shrinking, by about 10%, but next year will see sales of gaming laptops surge.

As per The Reg, Asus CEO S.Y. Hsu made the comments during the company's Q1 earnings call. He noted that the falling demand for GPUs used for mining was primarily due to the crypto industry addressing criticism of the amount of energy mining consumes.

Hsu is likely referring to Ethereum's upcoming move from its current proof-of-work model to proof-of-stake, which in theory will end the requirement for high-end GPUs to mine the tokens. Ethereum developer Tim Beiko recently confirmed that the previous switch date of June is no longer happening, though he believes it will "likely" occur within the following few months.

Hsu also warned that PC sales would return to the pre-Covid days of slowing growth in Q2 and fall 10% Quarter-on-Quarter, partly because of the lockdowns in China. Component sales, meanwhile, were predicted to fall between 10% and 15%. The CEO was more optimistic about next year, though, predicting a rise in gaming laptop sales, which he said young people view as an important piece of home entertainment tech.

Another factor will doubtlessly be the crashing crypto market. Almost $1 trillion has been wiped from the cryptocurrency markets this week, and low crypto values mean less mining profitability, which in turn increases GPU availability and lowers prices. Graphics cards are already closer to their MSRP than they have been since the crisis started, and falling mining demand is pushing their prices down even further.

Another interesting part of Hsu's speech related to the global component shortages that have been plaguing the industry for so long. "When it comes to integrated circuits, the supply is in a manageable level," he said, with power management chips being the exception. Shortages of camera components and printed circuit boards are proving to be an issue, though, as is US port congestion and shortages of containers and truck drivers.

"The current situation is not getting worse, but the constraints remain. Therefore, whether you are looking at shipping rates or air freight, the cost remains high. Of course, high shipping costs is creating cost pressure for us. But still, it's all in the expected and manageable level."

Backing up Hsu's remarks was this week's report that shipments of desktop processors have seen their largest quarterly drop ever: 30%.

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emmzo

Posts: 596   +744
Asus has confirmed the obvious. When crypto prices drop hard, electricity bills are way up, you can't even ROI your card. "Crypto is the future", but they all rush to exchange it for FIAT. I've been saying this months ago, prepare for a ton of SH cards to flood the market. I don't even bother with MSRP anymore, Nvidia, AMD can suck it, there's gonna be a bloodbath on who's selling lower on Ebay.
Edit: you CAN ROI your card in __insert number__ years...
 
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Dimitriid

Posts: 2,098   +4,010
The bad news is that demand for PCs is also shrinking, by about 10%, but next year will see sales of gaming laptops surge.

Again, why this surprises anybody? The pandemic not only created a lot of new customers for PCs but also prompted many existing customers to *upgrade* their equipment but that's a finite number of sales: Computers don't magically stop working after just one or two years and usually, upgrades before the 4 or 5 year mark are not all that compelling to most PC users be it desktops or laptops.

Of course the demand for PCs will keep decreasing because most people that wanted a PC or wanted to upgrade theirs/upgrade to a new laptop probably already did so. Why can't hardware manufacturers figure this out and adjust their expectations and expect the year after very successful sales to be 10-20% less sales year-over-year as completely normal?
 

Uncle Al

Posts: 8,677   +7,586
No real surprise here ..... as crypto looses it's charm so will all the tools and toys used to support it. Don't see a lot of kerosene lamps being sold since electric became popular .... LOL
 

m4a4

Posts: 2,850   +3,628
TechSpot Elite
Asus has confirmed the obvious. When crypto prices drop hard, electricity bills are way up, you can't even ROI your card.
Lol, what? Casually mining is still more than profitable enough to get ROI... unless you are using ooold hardware and live somewhere where electricity is ridiculous (which is not the norm). So, unless you can clarify where and what you're talking about, you can stop being disingenuous (or just ignorant) with this BS (and use facts next time).

Even with electricity at USD 30¢ kw/h (2-3x more than what North America on average pays), an older 2060 is still easily making a tiny profit mining Ethereum. Using a generous average of 15¢, even an old 1070 (20MH/s at 120w) is making profit.
 

eforce

Posts: 904   +1,275
Lol, what? Casually mining is still more than profitable enough to get ROI... unless you are using ooold hardware and live somewhere where electricity is ridiculous (which is not the norm). So, unless you can clarify where and what you're talking about, you can stop being disingenuous (or just ignorant) with this BS (and use facts next time).

Even with electricity at USD 30¢ kw/h (2-3x more than what North America on average pays), an older 2060 is still easily making a tiny profit mining Ethereum. Using a generous average of 15¢, even an old 1070 (20MH/s at 120w) is making profit.

Add another 50% and you're getting close to European prices.
 

emmzo

Posts: 596   +744
Lol, what? Casually mining is still more than profitable enough to get ROI... unless you are using ooold hardware and live somewhere where electricity is ridiculous (which is not the norm). So, unless you can clarify where and what you're talking about, you can stop being disingenuous (or just ignorant) with this BS (and use facts next time).

Even with electricity at USD 30¢ kw/h (2-3x more than what North America on average pays), an older 2060 is still easily making a tiny profit mining Ethereum. Using a generous average of 15¢, even an old 1070 (20MH/s at 120w) is making profit.
Lol, mining ETH with a 2060, will net you around 20 bucks a month, minus electricity. The card is selling for around 400 dollars, so you hope to get ROI in ... 20 months, if only ETH doesn't drop again...how stupid can you be? The 3070 will get you around 45, minus electricity and it costs 700 bucks. ROI in more than 15 months. Buy at MSRP and you still have 11 months till ROI. Good luck and pray in one year crypto is valued the same and difficulty doesn't increase that much, because you'll make even less. And all of this with an economic crisis looming.
So, when I said no ROI, I meant realistically very problematic. You must be talking about what if you already had a card, yeah, you can still make a profit, but that's beside the point in question.
 

Squid Surprise

Posts: 5,327   +4,969
Lol, mining ETH with a 2060, will net you around 20 bucks a month, minus electricity. The card is selling for around 400 dollars, so you hope to get ROI in ... 20 months, if only ETH doesn't drop again...how stupid can you be? The 3070 will get you around 45, minus electricity and it costs 700 bucks. ROI in more than 15 months. Buy at MSRP and you still have 11 months till ROI. Good luck and pray in one year crypto is valued the same and difficulty doesn't increase that much, because you'll make even less. And all of this with an economic crisis looming.
So, when I said no ROI, I meant realistically very problematic. You must be talking about what if you already had a card, yeah, you can still make a profit, but that's beside the point in question.
I know I know... facts suck when you are trying to make an argument... but... the 2060 will get you 80 cents a day... which is $24 a month... which means it would pay for itself in less than 2 years... and no one is buying a 2060 NOW for $400... that's what they paid for it when it was NEW - and that was a few years ago... when Eth was higher...

Which means those cards ALREADY paid for themselves...

Edit: use this to make calculations :)

Edit #2: Here's a link for the $400 2060.... oh wait... it's $350
 
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FaTaL

Posts: 74   +115
Thank christ. my geforce 2080 RTX super is starting to show its age but I refuse to pay 1500 for 3070
 

emmzo

Posts: 596   +744
So it will give you ROI, unlike what you claimed before.

What a surprise, being disingenuous by avoiding facts and all lol
Nitpicking to have a point. I already explain what I meant. For me ROI in more than a year is useless. By the time you start to make a profit, something better comes along and you'll earn nickels.
 

m4a4

Posts: 2,850   +3,628
TechSpot Elite
Nitpicking to have a point. I already explain what I meant. For me ROI in more than a year is useless. By the time you start to make a profit, something better comes along and you'll earn nickels.
Wouldn't be able to call you out if you didn't make disingenuous claims. Sorry you don't like the facts here :p

And so what? It's still better to make ROI in 2 or 3 years than pretend that it isn't possible. Especially considering not everyone can afford to upgrade every year like you seem to think. Like, talk about entitlement 😂
 

emmzo

Posts: 596   +744
I know I know... facts suck when you are trying to make an argument... but... the 2060 will get you 80 cents a day... which is $24 a month... which means it would pay for itself in less than 2 years... and no one is buying a 2060 NOW for $400... that's what they paid for it when it was NEW - and that was a few years ago... when Eth was higher...

Which means those cards ALREADY paid for themselves...

Edit: use this to make calculations :)

Edit #2: Here's a link for the $400 2060.... oh wait... it's $350
These cards paid for themselves. Have I said otherwise? Not only that, they made a hefty profit. But you need to pay attention, buddy, I was talking about now. NOW! That is the topic of the article. Tell you what, buy yourself a 3070 now for 700$, or a "cheap" 2060, maybe you'll find it for 370-380 $ and wait for ROI. Good luck!
 

Neatfeatguy

Posts: 793   +1,387
Thank christ. my geforce 2080 RTX super is starting to show its age but I refuse to pay 1500 for 3070

I hope you're not thinking a 3070 is a good upgrade from the 2080 Super. You'd gain maybe 15% performance.

With a 2080 S, I wouldn't even bother upgrading to any Ampere or RDNA 2 card, but that's just me. Even moving to a 3090 would only net you around a 35-40% improvement in performance.

Then again, I generally buy a high-end card and use it for 4-5 years - such as I did with my 980Ti.
Before that when SLI was big I'd buy two mid-top end cards (such as GTX 570s) and run them in SLI for 4 years. I don't upgrade that often, usually every 2-3 generations.
 

emmzo

Posts: 596   +744
Wouldn't be able to call you out if you didn't make disingenuous claims. Sorry you don't like the facts here :p

And so what? It's still better to make ROI in 2 or 3 years than pretend that it isn't possible. Especially considering not everyone can afford to upgrade every year like you seem to think. Like, talk about entitlement 😂
Like I said to the other miner, buy a card now and wait for ROI, buddy. Good luck! I'll be getting the same much cheaper in 2-3 months.
 

m4a4

Posts: 2,850   +3,628
TechSpot Elite
Like I said to the other miner, buy a card now and wait for ROI, buddy. Good luck! I'll be getting the same much cheaper in 2-3 months.
If I'm buying a new card, it's to build a new desktop for gaming. And I'll definitely be mining on it in the off hours to get some ROI from it.

So, not sure what you're trying to imply. But you'd be the one missing out on subsidizing your new card lol
 

emmzo

Posts: 596   +744
If I'm buying a new card, it's to build a new desktop for gaming. And I'll definitely be mining on it in the off hours to get some ROI from it.

So, not sure what you're trying to imply. But you'd be the one missing out on subsidizing your new card lol
Well, good for you, but the topic was why miners don't buy that many cards anymore at this moment. And that was what I was talking about. And I'm thinking full fledged miners, 24/7, at least 4-5 cards. Not someone that is gaming, doesn't care that much about ROI and just puts something on the side.
 

PEnnn

Posts: 747   +792
Crapto is dying. GPUs are getting cheaper, and the miners, GPU sellers, their shills, peddlers and the scalpers are getting an atomic wedgie.

The news are really good these days!!

Time to get a double bourbon and celebrate.