The reason for this price inflation is the influx of cryptocurrency miners. Cryptocurrency mining requires high-end GPUs and demand for the latest GPUs continues to rise, with supplies quickly running out. However, Taiwanese PC Builders recently discovered that multiple High-end GPUs are selling for cheap in China, with the RTX 3070 selling for only $400.
Why are Chinese crypto miners celling cheap GPUs?
China contributes the most out of any country to the hashrate of mining Bitcoin and other cryptocurrency. The country mines more cryptocurrency than any other. However, local authorities and the Chinese government are cracking down on cryptocurrency miners, slowing their business. Many miners are closing up shop and NVIDIA is also implementing a limit on cryptocurrency mining with its latest GPUs, causing miners to prefer older GPUs over the latest ones. Both the actions of the local authorities and GPU brands may help slow down Chinese cryptocurrency miners and restore the supply and demand balance for the latest GPUs. Aside from this, the cryptocurrency Ethereum is planning to kill GPU mining and will instead turn into a proof-of-stake model that lowers the requirement for the GPUs. These changes may finally lower the demand (and therefore prices) of GPUs soon.
Should you Purchase these Cheap GPUs?
The decision is ultimately yours. However, keep in mind that these GPUs were used for cryptocurrency mining which means that they were used constantly, 24/7. These GPUs are also exposed to extremely high temperatures with no rest, each day of the week. You may face problems with GPUs that have already been used for crypto mining if you are planning to use them for gaming. For gamers who are looking to buy the latest GPUs, we recommend that you sit tight and hold on a bit longer. GPU prices are already going down in Chinese markets because of the cryptocurrency crackdown. This crackdown may help other companies keep up with the growing demand for the latest GPUs, which may reduce the market price closer to its MSRP.
