Chinese Miners Flood The Market With GPUs

According to Chinese news, Mining machines are up for sale at very cheap rates. The nearby administration of Sichuan, China's second greatest bitcoin

Scalpers, pandemic, and a cryptocurrency boom formed a perfect storm that continued to make the GPU market touch the sky. The industry has been struggling with the component shortage, delayed shipments due to the pandemic, and off course because of scalpers. However, due to recent developments, the market seems to be crashing rapidly.

Chinese Miners Are Flooding The Market With GPUs, And Other Computer Parts.
Image: Unsplash

Scalpers, pandemic, and a cryptocurrency boom formed a perfect storm that continued to make the GPU market touch the sky. The industry has been struggling with the component shortage, delayed shipments due to the pandemic, and off course because of scalpers. However, due to recent developments, the market seems to be crashing rapidly.

Crypto Mining Ban in China

Recently, China started cracking down huge mining farms, bringing about miners flooding the market with second-hand GPUs.

According to Chinese news, Mining machines are up for sale at very cheap rates. The nearby administration of Sichuan, China's second greatest bitcoin mining focus after Xinjiang, given a prohibition on crypto mining. Expenses of mining rigs have drooped on the territory after the boycott.

To put this into perspective, a mining rig that cost around $4,000 in April and May, could now be purchased for as low as $800, according to a miner in Sichuan.

Should You Hold? Wait For The Prices To Go Down More?

The markets are unpredictable mistress and without precedent for close to one and a half-year. Prices in Germany have hit a 6-month low and Chinese miners are continuously flooding local markets with cheap, second-hand computer parts. With the wider crypto market, the stage is set for a crash, so right now wouldn't be the best time to buy a GPU.

GPU Prices In United States

China is a tremendous worldwide market and the clampdown there, joined with NVIDIA's latest announcement of LHR (Low Hash Rate) cards and the international cryptocurrency dump clearly seems to have created the perfect conditions for a GPU price crash.

Retailers in the US, as Newegg and Amazon are currently giving no indications of a drop except since the worldwide business sectors are associated - it is practically unavoidable before the exchange drives US markets to duplicate German and Chinese business sectors.

GPU Market Crash In Germany

According to records published by 3DCenter, prices in Germany are crashing by almost 50% over the topmost in May. On May 21, some cards were selling for as high as 304% of the MSRP, but have since crashed to a comparatively more pleasant level of 150%. As such, the prices of GPUs have essentially split in Germany. You can see evaluating information by German retailers below:

gpu prices crash in pakistan before after 2021
via wccftech.com

GPU Prices in Pakistan

Following the chip shortage around the globe, and increased demand of GPUs, the prices started to touch the sky in Pakistan, having an unbelievable increase in price from about 100% to 150%. Even older GPUs like NVIDIA GTX 750ti price increase from Rs.8,000 PKR to Rs.20,000. In addition, the price of AMD RX 570 increase from RS.14,000 PKR to as high as Rs.40,000 PKR. These two are some of the most popular GPUs in Pakistan currently.

Now following the crypto market crash and special thanks to the largest PC Gaming Community of Pakistan, Pakistani PC Gamers (PPG), the retailers are in shock and some have began to lower down their prices in order to clear the stock.

However, the prices are expected to fall down even more, globally. This might mean that right now is a great time to sell your GPU, if you had any plans to. But for buyers, a slight wait is required to avail the best prices.

by Talha Shaikhani