Ethereum, a very popular cryptocurrency, is changing its algorithm. This will stop GPUs from being used to mine Ethereum, which has caused the prices of GPUs to drop.
Over the last two years and a half, cryptocurrency mining has been said to be one of the main reasons why GPU prices have been so high. GPU prices went up because of demand from miners and a shortage of semiconductors around the world.
But after the price of cryptocurrencies dropped a few months ago and the shortage of semiconductors got better, GPU prices dropped to levels close to the MSRP. Now, Ethereum is switching from a model based on “proof of work” to one based on “proof of stake.” This pretty much means that you can no longer mine cryptocurrency with your GPU.
When you consider that mining cryptocurrency with a graphics card is no longer the best way to do it, a huge part of the mining market will no longer be looking at GPUs. ASICs work much better and will take up a lot of the demand for miners. There are still cryptocurrencies that can be mined with GPUs. But out of all of them, Ethereum and Bitcoin have the most demand because they have the largest market caps.
So, what does all of this mean to you?
ell, mining operations will take apart their systems and try to sell them on the used market to get their money back. If we look at eBay, we can see that the RTX 3080 10GB Founder’s Edition model sold for $750 or more in the middle of June. But now you can buy them for between $500 and $600. Just based on this small group, GPU prices have dropped by up to 39%.
Nvidia’s supply problem On top of these changes in the used market, Nvidia has a lot of these powerful graphics cards that are now going for a lot less than they were. This will force them to raise the price of the RTX 40-series, which may be much more expensive than the 30-series. This is because of how the market is set up. They need to get rid of older models and compete with a strong used market to sell all of the ones they already have.
This is good news for people who might want a new graphics card because they can now get RTX 3080-level performance for around $500 if they are willing to take a risk and buy a card that has been used for crypto mining before. But if you want the best performance, you should expect something like the RTX 4090 to cost a lot.