Many gamers have been waiting for graphics cards prices to go down. So that they can building their PC but the prices of GPU’s are touching the sky. And everybody knows graphic card is the primary component for building a gaming PC. There some countries like Germany, Austria, UK which are reporting a decline in price. The prices are nearly close to MSRP (Manufacturer’s Suggested Retail Price).
But, the good news is according to some reports from the Tom’s Hardware. It’s showing that the GPU prices might became cheaper this quarter.
But Why are the prices going down ?
Here are some reason behind the price drop of graphics cards. We will discuss about it here
1. Chinese Government Banning Crypto Mining in China
This is one of the main reason why GPU prices are going down. As, China plays an important role in mining crypto. Chinese government started to ban cryptocurrency transactions and crack down hard on any financial institution dealing with such tokens.
According to University of Cambridge, China before this crackdown accounted for roughly 65% of all bitcoin hashing power or in simple words china was responsible for 65% of all bitcoin mining around the globe.
China was a massive player in the purchasing of GPU for cryptocurrency mining. As a result GPU flood in china has already started with one user reported seeing RTX 3060 for as little as $270 whose MSRP is $329. As they are finding to get as more profit as they can get currently.
2. Newly produced cards having Low Hash Rate
This will definitely play a significant role. These cards are having low hash rates which are not suitable for mining. Hence, Miners will stay away from these cards. Which will result in lower the demand of these cards as only gamers would want these cards.
3. Increase in Production of Graphics Cards
According to a report from GameRant . It’s been announced that NVIDIA will be increasing production of one of its highly demanding card i.e., RTX 3060.
China was the massive player in buying graphics cards but as for now the government of china has implemented the ban on crypto mining in china. So, this will not be an issue this time .
As a result it seems to be a good news for the people waiting for GPU shortage to end. As, the supply increase it will result in drop in current prices of GPU.
4. Ethereum Hard Fork
Ethereum Hard Fork update is expected to launch in august. It will play an important role in bringing the prices of GPU down. Currently, transaction fees are set by users and accepted in full by miners. But, in Ethereum London hard fork it is expected that it gonna reduce the profitability for miners.
In this update the Ethereum protocol will set the transaction fees and it will be removed or “burnt” instead of being awarded to miners. This burning mechanism of Ethereum hard fork is one of the most controversial aspect of Ethereum London upgrade as it directly affects the revenue of miners.
This could spell a massive drop in profitability and more graphics card could come onto the market.
In a nutshell , there is no doubt that the prices of graphics card will come down if situation stays the same. Until then the only game you need to play right now is the game of patience as it will take some time. But, there are also some people in supply chain who believes that the cryptocurrency mining craze will bounce back.
So, what are your thoughts do share your comments below. If you want to know more about cryptocurrency you can click here.