While the enthusiasm of miners is starting to fade, they remain the main force driving GPU sales at least through the first half of this year. Citing a recent report published by Bloomberg, Ethereum crypto miners spent $15 billion to buy GPUs for mining during the latest crypto boom that began in 2021.
Bitcoin and Ethereum reached all-time highs of over $67,000 and $4,800, respectively, but have since been on a downward trajectory to $18,000 and $960 respectively, thus causing the price of graphics cards to return to normal levels.
According to Bitpro Consulting, ethereum miners spend about $15 billion on graphics processing units (GPUs), not including ancillary costs such as wiring and transformers.
Faced with the decline of cryptocurrency, it has actually led to a decline in GPU prices, which also makes it difficult for crypto miners to recover their losses. Graphics cards used by most crypto miners are premium buys, reaching nearly 3x MSRP as early as 2021. Most of these GPUs are now being sold at MSRP on resale sites like eBay.
This means that every cryptographic graphics card bought during the 2021 boom will now have to be sold at a huge loss. The NVIDIA GeForce RTX 3090 is the graphics card that generates the highest hash rate in Ethereum and is currently listed for under $1000 (MSRP $1499). When mining was at its peak, the same card sold for over $3500.
The influx of these mining cards into the second-hand market also affected the sales of new graphics cards. Companies like AMD and NVIDIA (and their AICs) that have been looking to clear their existing GPU inventory will now have to compete to use cheaper reseller inventory. Companies are also enticing gamers with newer deals and marketing campaigns such as game bundles, but with used graphics cards priced well below MSRP, it appears that giants like NVIDIA and AMD will take longer to clear old inventory (unless they offer significant discounts). and rebates).
And this will affect the launch of next-generation graphics cards. The next-generation graphics card was originally planned to launch in the third quarter of this year, but as the report highlights, it may now be delayed until the fourth quarter of 2022. According to Jon Peddie Research, desktop graphics card sales for the full year of 2021 are reported to be $51.8 billion (GPU sales are 49.021 million).