As the Ethereum network’s move to a proof-of-stake (PoS) consensus mechanism drives adoption by institutional investors, prices for graphics processing units (GPUs), which are often used to mine cryptocurrencies such as Ether (ETH), are down in China.
Following the historic Ethereum meltdown on September 15, previously highly sought after Nvidia GeForce GPUs have become significantly cheaper, according to a report by the South China Morning Post. Peng, a Chinese trader, put the RTX 3080 as an example, as the price of the GPU dropped from $1,118 or 8,000 yuan to 5,000 yuan in three months.
According to Peng, when Bitcoin (BTC) mining was at its peak in China, mining companies were making GPU purchases. But at the moment, the trader said no one is buying new PCs, let alone new GPUs.
Another trader named Liu also highlighted that lower-end RTX 3080 cards from manufacturers like MSI also dropped around 2,000 yuan compared to prices two months ago. According to Liu, this may be heavily influenced by the hype surrounding Ethereum Merge.
Store merchants are not the only ones affected by the lower demand. The online shopping platforms Taobao and JD have also shown a decline in GPU prices. The RTX 3080 cards on these websites have slowly dropped in price by a few hundred yuan compared to their prices three months ago.
Related: Bitcoin Possession Remains Legal in China Despite Ban, Lawyer Says
After the Ethereum Merge, the blockchain moved from its energy-intensive proof-of-work (PoW) mechanism to the PoS layer called Beacon Chain. With this, the miners who used to process transactions and produce blocks are replaced by ecosystem participants who would stake ETH to become the new validators of the network.
Meanwhile, a PoW fork called ETHPoW went live as the merger began. However, despite its attempts to maintain the PoW consensus, it suffered from technical issues when it was launched, which reduced the price of its ETHW token by 65%.
This post China GPU prices fall to new lows after Ethereum merger
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