Ethereum miners spent $15 billion on graphics cards in the last 18 months

Tudor Cibean

Posts: 117   +8
Staff
In context: Ethereum miners alone have reportedly spent about $15 billion on graphics cards over the past 18 months. This figure doesn't include GPUs used for both gaming and mining by gamers trying to recoup some of the cost of their rigs.

According to a new report, Ethereum miners have spent approximately $15 billion on GPUs over the past 1.5 years. That number doesn't include the cost of CPUs, motherboards, PSUs, and other components necessary for a mining rig. The data comes from Bitpro Consulting, a company that specializes in purchasing and refurbishing crypto mining hardware.

In late 2020, many cryptocurrencies saw a drastic price increase, leading to millions of people buying graphics cards at retail to mine Ethereum with the goal of making a quick buck. At the same time, AMD and Nvidia launched their new generation of GPUs, which featured a massive performance improvement compared to their predecessors, making many gamers want to upgrade.

Demand far exceeded supply and sent prices skyrocketing, with hardware scalpers only exacerbating the issue. According to Jon Peddie Research, the average selling price of add-in graphics cards jumped from just over $400 in 2019 to almost $800 last year.

Also see: TechSpot GPU Pricing Update: May 2022

People who got into mining early on made hefty profits off their investments. However, Ethereum has dropped in value by over 80 percent since its peak last year, leaving many struggling to recoup costs. Bloomberg reports of a man who has so far earned only $5,000 worth of crypto from his $30,000 hardware investment.

After Ethereum switches to a proof-of-stake model, GPU miners will no longer be able to mine the cryptocurrency. Developers claim the move will happen in August, although it might get delayed once more.

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takaozo

Posts: 112   +151
What a loss for some people. Still they dont understand this cycle goes like this since 2009 with BTC.
Pump and dump.
Not sure they ever will understand that the ones selling the tolls, are the ones that made proffit at each "gold/crypto rush". And the ones that speculate the market.
A fool is easy parted with his money.
 

Fearghast

Posts: 530   +439
It would make this topic even more interesting (apart from ETH crashing), what will happen when/if ETH swaps to the new algorithm they are taunting for ages.
Discounted GPUs on every corner? Mining other crypto?
 

psycros

Posts: 4,234   +6,032
Looks to me energy crysis is here to stay, it will soon go to zero value.
BTC and ETH dont put food on peoples table.

They did if you cashed out at the peak. They also bought the table and probably the house to put it in. Its just like any other shifty financial device and its not going away. None of the scams that gave us the last great financial collapse have been outlawed because the crooks who invented them are good buddies with the "regulators". Its all one big happy family of grifters at the treasury and the Fed.
 

KIAg1978

Posts: 25   +29
Well that's it, 15 billion ,my god the gold rush together with stupidity rush , making money over fools that think they can be rich over night and the only ones that are really making money are the companies and especially nvidia and Amd ,poor intel didn't have their gpus ready on time !! Don't worry stupidity is still out there and crypto will gain foot again over time !! It will be another crypto hype as soon as the new lineup is ready ,when next generation is out there companies will find a new way to use them for that and again all the fools will be waiting for it to take the money back xaxaxxaxaaxxaxa!!plenty of *****s out there ,why make gpus for gamers, they are just a small percentage of gpus sold and not enough to give profits that count for big companies !! Mark my words ,2023 will be the year for *****s(miners) to give up their precious money again in hope of a come back from the pitfalls that came upon them the last month !!
15 billion still can get it in my mind !!!STUPIDITY IS UNBEATABLE!!
 

Kosmoz

Posts: 600   +1,110
So where is nvidia now, when they were lying about not knowing how many GPUs they sold to miners and how much $$$ did they make milking them and not selling to gamers...?

Where are the journalists with integrity demanding nvidia to be transparent and accountable about the **** they say and do? Like "we care about gamers" and then proceed to sell most of their GPUs to miners...

Yeah, AMD is guilty too, but with an 80% market share nvidia trumps the guilt card over AMD by a factor of 4. No to mention AMD never lied or mocked their customers.

But who cares about integrity and professional journalism when it's easier to be their "friend with benefits", right?
 

Irata

Posts: 2,163   +3,743
Speaking of new cards offering much better performance.

Ethash for

RTX 2080 - RTX 3080 increased from 37.314 MH/s @175W to 97.878 MH/s @ 224W
5700XT - 6700 XT decreased from 54.282 MH/s @ 91W to 47.025 MH/s @ 121W
source: Minerstat
 

Nanochip

Posts: 71   +112
You know what asset I own that didn’t decline in value from this BS with crypto ? Good old fashioned real estate.
 

takaozo

Posts: 112   +151
I can see a lot of used RTX3060 and 3060Ti onsale starting 400 Euro.
they are desperate to reduce the loss, but since they pay 800-1000 :)
this will fun times for new cards in stores
 

Nobina

Posts: 3,826   +4,273
They did if you cashed out at the peak. They also bought the table and probably the house to put it in. Its just like any other shifty financial device and its not going away. None of the scams that gave us the last great financial collapse have been outlawed because the crooks who invented them are good buddies with the "regulators". Its all one big happy family of grifters at the treasury and the Fed.
Cash out? But crypto was supposed to be something you invest in long term because the government and banks can't control it!!!
 

Nobina

Posts: 3,826   +4,273
I can see a lot of used RTX3060 and 3060Ti onsale starting 400 Euro.
they are desperate to reduce the loss, but since they pay 800-1000 :)
this will fun times for new cards in stores
Usually, the GPU pays itself off after about a year, after that it's profit or you just sell it. Basically, people that bought GPUs for mining early got the most out of them and should be in the green.
 

VitalyT

Posts: 6,272   +6,841
Parasitic scum...
The crypto-miners...
636237108104633635-LEECHES-1.jpg


 

kiwigraeme

Posts: 1,118   +820
What a loss for some people. Still they dont understand this cycle goes like this since 2009 with BTC.
Pump and dump.
Not sure they ever will understand that the ones selling the tolls, are the ones that made proffit at each "gold/crypto rush". And the ones that speculate the market.
A fool is easy parted with his money.

I think this time it's different - when some on here sanctimoniously claims only a small amount of transactions were for crime - it hid that the majority were the whales pumping & dumping in cycles - ie washing - plus many others were the lets get rich brigade - so crime was really a high proportion of actually buying real "stuff"
The point is as the Cap got bigger you needed more fools - at $60 000 - how many more fools were there ? - could only got up on less and less volumes traded

I think you these adverts targeting Joe Average to get on the wagon will now be less successful ( we make it easy for you , we "know" bitcoin and all other coins tosh )

What you now have is hard core = go on reddit - best time to buy - I've bought some at $19000 so my cost is now down to $46 000 on averagefrom $48000 I'm on a winner ! .
If won't die as when it gets down real low - people will snap up 50 or so - hey who knows - plus criminals will still crim.

Plus I think the biggest holders are so rich from pumping and dumping cycles - maybe they just take that 5 billion and enjoy life and invest in land, shares etc

Yes smart people will wait to stabilisation - wait for climb buy quick - sell after 10% or 20% climb and take easy money