Prices of GPUs Fall, Supply Increases as China Cracks Down on Crypto Mining

Computer hardware sites are beginning to see GPU stocks come back to pre-pandemic levels while prices have dropped 5%-10%.

Jun 21, 2021 at 7:09 a.m. UTC
Updated Sep 14, 2021 at 1:14 p.m. UTC

Prices of graphics processing units (GPUs) are starting to come back down to Earth after reports China has begun cracking down on crypto mining in the province of Sichuan.

According to a report by the South China Morning Post on Monday, prices for GPUs have fallen by as much as two-thirds on e-commerce platforms following the crackdown. While the development is tentative for miners, gamers, who have long been locked out of buying the newest cards due to global supply shortages, are rejoicing.

On Friday, the Sichuan branch of the National Development and Reform Commission and the Sichuan Energy Bureau issued a decree to crack down on crypto mining operations. The region is particularly important as it is one of the largest hydro-based crypto mining hubs in China.

Local computer hardware sites in Australia, including Scroptec and Umart, are beginning to see GPU stocks resume back to pre-pandemic levels while prices have dropped 5%-10%.

Throughout 2020, prices on GPUs rose to astronomical heights resulting from skyrocketing demand as people were forced to work from home as a result of COVID-19. Stocks of the cards across e-commerce sites were sold out for months at a time.

Demand for cryptocurrency and the resulting price rises also led miners to seek out the latest cards in a bid to tap into the craze. The problem has gotten so out of hand it prompted Nvidia to implement a feature known as "lite hash rate," designed to limit the GPUs' use for crypto mining.

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
Terra’s LUNA Gains, Then Slides, After Do Kwon's Fork Proposal

Traders sold the tokens even as founder Do Kwon proposed a separate chain to make up for last week’s implosion of UST.

Traders sold the tokens even as founder Do Kwon proposed a separate chain to make up for last week’s implosion of UST.

2
Breaking Barriers to the Web 3 Creator Economy

The latest innovations in blockchain technology are enabling creators to earn more from their work and achieve an unprecedented level of autonomy.

The latest innovations in blockchain technology are enabling creators to earn more from their work and achieve an unprecedented level of autonomy.

3
How Not to Run a Cryptocurrency Exchange

At Japan's Liquid exchange, recently acquired by FTX, warnings were ignored, breaches unreported and employees berated and cursed at, insiders say.

At Japan's Liquid exchange, recently acquired by FTX, warnings were ignored, breaches unreported and employees berated and cursed at, insiders say.

4
Morgan Stanley Warns NFTs Next to Watch After UST Collapse, Bukele Announces Mega Banks Meeting in El Salvador

The most valuable crypto stories for Monday, May 16, 2022.

The most valuable crypto stories for Monday, May 16, 2022.