Miners and Internet cafes are selling their GPUs due to a cryptocurrency crash
As Bitcoin and Ethereum cryptocurrencies are rapidly losing value, miners are forced to sell their hoarded graphics cards for profit.
We have discussed how Internet cafes have been making money by buying A large number of graphics cards For the sole purpose of mining. This issue arose at the same time that the price of Bitcoin skyrocketed and people were banned from visiting internet cafes due to the COVID-19 pandemic. But over the past few months, the situation has changed dramatically.
Chinese miners sell their GPUs, Source: Baidu / Hassan Mojtaba
Miners and coffee shop owners are now selling mining cards in bulk. These cards are now being sold during live auctions where models like the RTX 3060 Ti can be had for between $300 and $400.
Hoarders, Scalpers, Miners and Internet Café owners are now forced to sell their cards, which are usually bought at a much higher price anyway. But given the recent drop in the price of Ethereum, the ROI should now be calculated in years, rather than months. This means that miners who were looking for an easy win now have the option to sell their cards as soon as possible to keep at least a portion of their winnings, or to continue mining and hope for the return of the cryptocurrency.
NVIDIA RTX graphics cards sold by miners, Source: Baidu
Ethereum is also set to switch to a Proof of Stake model between Q3 and Q4 this year, ending a Proof of Work model that relies on GPU power. This leaves a very short window for miners to make a profit, if there is any at all.
The alternative is to sell these cards as quickly as possible, which is exactly what happens on Chinese auction sites. One can easily find RTX 2060 or RTX 3060 Ti listed below MSRP. However, it should be noted that these cards have a very low value due to how widely they are used. At least in this case, graphics cards sold through auctions are clearly labeled as ex-mining equipment.
source Baidu Via Hassan Mojtaba:
GPU flood here.
Chinese miners and environmental makers in South Asia are now dismantling their mining rigs and auctioning off cards on live streams.
3060T will go for $300-$350… pic.twitter.com/kphmIt7vZw
– Hassan Mojtaba (@hms1193) June 21 2022
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