The value of GPUs in China is at an all-time low
As a result of The Merge which realized a transition to the more environmentally friendly PoS protocol, the damage has affected other sectors of the crypto industry. In particular, companies that produce GPUs, which previously generated a significant portion of their profits from the demand for miners to mine Ethereum, have been hit.
The South China Morning Post reported that CPU sales in China were at an all-time low due to The Merge. The cost of expensive GPUs has plummeted by 37% or more.
SCMP quotes one of the traders:
The expensive RTX 3080 processor now costs $712 (5,000 yuan), while three months before its price was $1140 (8,000 yuan). All of this has been the result of falling demand from ETH miners.
Negative scenarios impact the situation making it more difficult. In particular, the collapse in the value of BTC, restrictive measures due to Covid, and the actions of the Chinese authorities concerning cryptocurrencies.
The cost of cryptocurrency mining GPUs has been rising for years. After The Merge, the process shifted very quickly in the opposite direction. There is an opinion that all traders are currently selling GPUs at a loss.
However, there is a contrary view that for other GPU users, this will be the end of a long time when the purchase of a GPU requires huge costs due to the prices raised by miners.