GPU prices see sharp drop in China after Sichuan authorities shut down cryptomining operations

nanoguy

Posts: 792   +12
Staff member
In context: Sichuan was previously China's second largest haven for cryptocurrency mining operations, but it's quickly turning into the opposite, as authorities seek to crack down on this type of activity. The region, along with other mining centers such as Inner Mongolia, Yunnan, and Xinjiang have already shut down some of the largest cryptomining farms in China, which is good news for both cryptocurrency enthusiasts and gamers.

One key factor contributing to the shortage of graphics cards is cryptocurrency mining. In our latest CPU & GPU availability and pricing update for June 2021, Tim explains how Ethereum mining in particular has become less profitable due to a combination of factors, and how that's started to impact average prices for GPUs, which is now trending downwards after seeing record prices in May.

Last week, Asrock said graphics card prices would soon fall amid a plunge in demand from miners in China, while shipments of AMD cards are expected to improve significantly thanks to improvements in silicon fab capacity. This is now confirmed by a report from the South China Morning Post that shines more light into the state of cryptomining in the region.

In the last several months, Chinese authorities have brought the hammer down on mining activities across the country, which is why several big operations have been moving towards the Americas. According to a logistics firm in Guangzhou, no less than 6,600 lbs (3,000 kg) of mining hardware is being flown across the ocean to Maryland, US. Others are also eyeing Texas for its abundance of solar and wind power, as well as crypto-friendly policies.

Over the past week, China's crackdown on cryptomining operations has expanded to the Sichuan province, where cheap hydropower had been a magnet for mining farms. Local authorities have told electricity providers to investigate their clients who could be using power for mining, and 26 operations have had the plug pulled on mining farms over the weekend.

Must read: What is cryptomining?

This may only be the beginning, however, as China's Central Bank has asked Chinese banks and payment processors such as Alipay to avoid participating in the crypto sphere in any way, from opening accounts to facilitating transactions and settlements with cryptocurrencies.

GPU prices in China have seen a sharp drop over the last few days, with the average retail price for models such as the Asus RTX 3060 going from 13,499 yuan ($2,090) to 4,699 yuan ($730). Even professional, workstation graphics cards like the Nvidia Quadro P1000 went from 3,000 yuan ($464) to 2,429 yuan ($376). This trend is not as pronounced in other regions, but it's great news for gamers everywhere.

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QuantumPhysics

Posts: 4,999   +5,604
Because the scalpers out there understand how much people are willing to pay for video cards I doubt that we will ever get beyond video card scalping completely.

However: now that SLI is basically dead and this crypto nonsense Ponzi scheme is finally coming to an end there is a good possibility that the future of graphics card prices looks good.
 

Achaios

Posts: 139   +414
Τhere were ppl so delusional abt the historically high GPU prices that they went to absurd lengths to defend the Miners.

In the NVIDIA sub reddit, a couple of months ago the consensus was that "gamers are wholly responsible for the GPU high prices" and to be more specific "former console gamers who went PC for the 1st time".

I kid you not, ppl were routinely posting this disinformation and were gettin' upvoted by other Miners.

It is now quite clear who's to blame.
 

Dimitriid

Posts: 687   +1,214
Oh so you're moving to Texas! The place that has been shown twice in the last 6 months, to be notoriously unreliable and prone to mass grid failures due to their rampant, unregulated speculation and complete isolation from any failover plants throughout the rest of the US?

Yes let's put the equivalent of a small country worth of electricity on that grid, I am sure it will work out juuuust fiiiine!
 

R00sT3R

Posts: 454   +1,238
Yes let's put the equivalent of a small country worth of electricity on that grid, I am sure it will work out juuuust fiiiine!

It's America, if they think there's a buck to be made, infrastructure will have unlimited $$$ dropped on it.

The federal set up means each state is in a race to the bottom to attract ever more money. Next we'll be reading about Texas offering all sorts of tax breaks to become the US capital of mining.

If there is any state in the US that couldn't care less about the environmental damage caused by mining, I don't know of it.
 

Dimitriid

Posts: 687   +1,214
It's America, if they think there's a buck to be made, infrastructure will have unlimited $$$ dropped on it.

The federal set up means each state is in a race to the bottom to attract ever more money. Next we'll be reading about Texas offering all sorts of tax breaks to become the US capital of mining.

If there is any state in the US that couldn't care less about the environmental damage caused by mining, I don't know of it.
You're right but I think that the news about Texas offering breaks to become a big mining capital will be smaller compared to "14 days of rolling black outs and people expecting a year salary equivalent of a utility bill next month to be able to have 4 hours of power at best" when that inevitably happens 3 to 6 months after the first wave of miners moves in.

Not that I don't think Texas has the money, but remember that electricity generation is fully privatized so the companies are incentivized to deliver the bare minimum of power needed and to not waste money on preparing for eventualities like a sudden influx of new clients.

Why? Because if they go offline the "demand" goes through the roof and they jack up their prices and make a killing on people just wanting to not have to either melt or freeze (Since we had both this year alone already) to death.
 

m4a4

Posts: 2,415   +2,739
TechSpot Elite
Sichuan? The place where the hydro-electric dam creates boatloads of excess clean energy that goes to waste if not used?

Man, nothing like China tightening their grip over their people, eh?
 

QuantumPhysics

Posts: 4,999   +5,604
The communists hate bitcoin, makes me start to like it a little.....nah, it sucks.


No country will allow crypto to threaten their national currency.

China will ALWAYS have a Chinese currency. RNB

Japan will ALWAYS have a Yen.

South Korea will ALWAYS have a Won.

This is about cultural identity.

 

terzaerian

Posts: 960   +1,398
The upside to all this is that the Chinese crackdown is coming as a flurry of punches rather than one knockout blow. If the Chinese had, instead, just jumped on the miners and seized their hardware, I think we'd be looking at a far more dire situation for BTC's network and the market. Right now hash is dropping but once miners get resituated in countries that aren't dystopian hellscapes, it should start to pick up again.

The next time bomb to look out for is the developing Tether situation.
 

StrikerRocket

Posts: 75   +42
I call BS............just saying, nothing china does is without being able to spy, tap, track, trace, infiltrate other countries

Are you sure? So the transfer of factories and of the know how developed in the "west" just to increase profit margins and benefit from cheap labour has nothing to do with this of course?
See, I'm 49, and when I was in my early 20s, I already ranted against such technology transfer, and some well known French thinkers and politicians did the same much earlier in the 70s too...

Why do you think the Chinese send their best students to study in the USA or Europe? Perhaps they do that less and less, as they have mainly picked up the pace, thanks to poor industrial secret protection on our part. Shi Zengli, the scientist who discovered the coronavirus, obtained her PhD in Montpellier, a French university...
 

Danny101

Posts: 1,741   +756
Are you sure? So the transfer of factories and of the know how developed in the "west" just to increase profit margins and benefit from cheap labour has nothing to do with this of course?
See, I'm 49, and when I was in my early 20s, I already ranted against such technology transfer, and some well known French thinkers and politicians did the same much earlier in the 70s too...

Why do you think the Chinese send their best students to study in the USA or Europe? Perhaps they do that less and less, as they have mainly picked up the pace, thanks to poor industrial secret protection on our part. Shi Zengli, the scientist who discovered the coronavirus, obtained her PhD in Montpellier, a French university...
They send them for espionage, business or otherwise.