China is starting to sell GPUs for a low price.

 

Miners in China are starting to sell their GPUs for a low price.

Could this be a harbinger of what's to come in the cryptocurrency mining industry as a whole?

Is it possible that the cryptocurrency explosion in China is slowing down? The sales of graphic cards for mining groups seem to indicate that this could be the case. For the sake of not speaking too soon, Taiwanese PC manufacturers discovered a large number of GPUs in use in China, tarjetas that were most likely used to extract cryptomonedas at some point, but that no longer seem to be worth the effort.

According to a screen capture from a mining group published on PTT, a prominent Taiwanese classifieds site, Chinese miners are selling a large quantity of GPU from Nvidia and AMD (via HKEPC). These include the most recent series 30 or 6000, as well as older GPU generations such as AMD's cheap and cheerful Polaris generation.

The prices of credit cards are also skyrocketing. According to HKEPC, each RTX 3070 will cost approximately $ 3,120 HKD (dólar de Hong Kong) and will be sold in hundreds. That's a little more than $400 in US dollars.

Given that these cards are sold on a granular basis, it's possible that the sellers are hoping other cryptocurrency miners in other locations will accept the offer. Regardless, the players will most likely want to keep their distance.

The fact that these graphics cards have been used to extract cryptocurrency should serve as a red flag to potential buyers: you probably don't want a graphics card that has been turned off for 24 hours a day, seven days a week, and at high temperatures for your next gaming PC.

The fact that these cards are being sold could signal a wider decline in bitcoin profitability or feasibility in China. Although China presently has the largest hash rate in the world, meaning it mines more cryptocurrency than anybody else, recent crackdowns on mining by both the country's financial and municipal authorities may cause some to turn elsewhere.

There are a few other signals of a possible turning of the tides for GPU mining, most notably in China: GPU costs are falling, ASRock reports that demand is reducing, and Ethereum is switching to proof-of-stake, which might speed up the process. Then there's Nvidia's hash rate limiter, which will worry miners even more if profitability falls further than it has this year.

But there's no way of knowing for sure what will happen. This could only be a blip, a brief pause in the market for today's most valuable cryptos. Even the 'low' value of Ethereum or Bitcoin today is significantly higher than it was in January of this year.

Essentially, this isn't the end of bitcoin, and we're far from being out of the woods.