As the Ethereum network’s step to a proof-of-stake (PoS) consensus mechanism is expected to drive adoption from institutional investors, the prices of graphics processing units (GPUs), utilised for the mining of cryptocurrencies such as Ether (ETH), have went down in China, as reported by Cointelegraph.
According to Cointelegraph, post the Ethereum Merge, the previously high Nvidia GeForce GPUs have reportedly become cheaper, insights from a report by the South China Morning Post stated. Peng, a Chinese merchant, gave the RTX 3080 as an instance of the GPU’s price dropping from $1,118, or 8,000 yuan, to 5,000 yuan within a period of three months. According to Peng, when Bitcoin mining was increasing in China, mining companies were pursuing GPU shopping sprees. Another merchant Liu also highlighted that low-end RTX 3080 cards from manufacturers such as MSI also fell by approximately 2,000 yuan, in comparison to prices two months earlier.
On the basis of information by Cointelegraph, the in-store merchants were not the only parties who were affected by the effects of low demand. Online shopping platforms such as Taobao and JD have also projected falling prices of GPUs. RTX 3080 cards on these websites have fallen in prices by reportedly a few hundred yuans compared to their prices three months back.
Moreover, Cointelegraph noted that post the Ethereum Merge, the blockchain made the shift from its energy-oriented proof-of-work (PoW) mechanism to the PoS layer known as the Beacon chain. With this, miners that used process transactions and create blocks are replaced by ecosystem participants who would stake ETH to become the new validators of the network. Furthermore, a PoW fork called ETHPoW went available to users as the Merge commenced. However, despite its attempts to retain the PoW consensus, it went through technical issues when it launched, which resulted in ETHW token’s price lowering by 65%.
(With insights from Cointelegraph)