The crypto market is plummeting, and investors are watching the value of their holdings plummet. Cryptocurrencies have fallen since the start of the year, particularly more recently. Global cryptocurrency market cap decreased $80 billion between June 15 and 16.
Since June 16, all major cryptocurrencies have fallen from their recent highs. Bitcoin peaked at $69,000 and is now worth $21,000; Ethereum peaked at $4,811 and is presently $1,117. (via CoinDesk). Stable coin Terra will perish next month, and crypto depositing business Celsius is in peril.
Crypto miners, who keep the blockchain running and earn cryptocurrency, have also seen profits plummet. Some are making less than a dollar a day after costs, and may not see the sense of continuing in the current atmosphere, which is great for PC gamers.
PC gamers have long faced sky-high GPU pricing. While crypto mining wasn’t the only factor driving up prices, it was a major driver of GPU scarcity. Miners could pay two or three times the MSRP for a high-end graphics card, while gamers had to pay more than the whole of their rig combined or not bother. In May, high-end GPUs were in stock and available at MSRP. The crypto market dropped again, lowering crypto mining profitability and GPU prices. Some GPUs are already 33% cheaper than a few months ago.
Already happened. When the crypto market crashed in 2018, vendors had a surplus of graphics cards, and prices fell. Gamers may buy a high-end RX 570 4GB for the same price as a lower-end RX 560 (via Tom’s Hardware). If the current crisis follows the same trajectory, gamers might buy their fantasy card for a fraction of its retail price. Gamers contemplating an update or new build during the scarcity may see the crash as a good time to act. Crypto miners may sell their used equipment on the second-hand market, but the offers may not be as good as they seem.
Should you buy a GPU that was used for mining?
For years, PC gamers have been tortured by exorbitant GPU prices. Crypto mining was a major driver of GPU shortage, albeit it wasn’t the only thing driving up pricing. Miners could afford to pay two or three times the MSRP for a high-end graphics card, whereas gamers had to choose between paying significantly more than the rest of their rig — or not bothering at all. High-end GPUs were not only back in stock in May, but they were also available at the manufacturer’s recommended retail price. The crypto market then dropped once more, lowering the profitability of crypto mining and, as a result, GPU prices. Some GPUs are already selling for more than a third less than they were a few months ago.
All of this has happened previously. When the cryptocurrency market fell in 2018, producers discovered a massive oversupply of graphics cards, causing prices to plummet. According to Tom’s Hardware, gamers could get a high-end RX 570 4GB for approximately the same price as a lower-end RX 560, which had around half of the 570’s capabilities. If the current crisis follows the same pattern, players may be able to get their hands on the card of their dreams for a fraction of the price it was just a few months ago. Gamers who have been waiting for an upgrade or planning a new build during the shortage may see the crash as the perfect opportunity to do so. There may be discounts to be gained on the second-hand market as crypto miners try to recoup some of their losses by selling their used equipment — but such offers may not be as good as they appear.
