Crypto Crackdown in Chinese could help Usher in a GPU price return to health

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Photo: Justin Sullivan/Getty Images (Getty Images) – The GPU price in China has decreased in relation to the model by as much as 66%.

Finding new graphics cards at reasonable prices was almost impossible at the latest, but could be about to change after the Chinese GPU prices fell to as many as 66% following numerous Sichuan, Xinjian, and Inner Mongolia crypto-mining shutdowns.

According to a recent report by the South China Morning Post, China’s recent attack on cryptocurrency has devastated crypto-mining operations across the country, causing demand for graphics cards to plummet and a large drop in GPU prices among China’s largest retailers.

The SCMP has now found a price of only $ 4699 yuan (approximately US $ 725), down from the high of $ 13,499 yuan (approximately $ 2,085) recently seen in early May, for an Asus branded Nvidia RTX 3060. And while Nvidia’s typical MSRP of around $330 for an RTX 3060 card is still twice as high for about $725, that is still a huge price drop over a little more than a month.

Although the Quadro cards line of Nvidia is usually not targeted towards general customers, it also notes that the Quadro P1000 GPU entry level prices have declined from approximately 3,000 yuan (approximately $500) over the same period to 2,429 yuan (approximately $400).

China’s recent decision to ban financial institutions and payment services from supporting cryptocurrency is the driving force behind China’s falling GPU prices, effectively prohibiting the use of bitcoin and other crypto coins as legal currencies, but also prohibiting online exchanges from converted cryptocurrency into traditional money (or vice versa).

Moreover, China seeks, in recent times, to reduce carbon emissions and better manage its generation of electricity, by reducing power to several crypto-mining operations in Sichuan and other areas, taking huge volume of mining plants offline.

Of course, this has brought about tonal volatility in cripto markets, and since its all-time highs hit in middle May, the prices of large crypto coins such as Bitcoin and Ethereum have dropped by up to 50 percent, or more. Although prices have not dropped as dramatically for GPUs outside China, there is some indication that GPU prices are also beginning to recover.

Only a week earlier, the latest edition of the GPU price index of Tom’s Hardware showed that the prices for current cards fell between 4% and 12%, depending upon the model in the first two weeks of June. That said, it will be for a while before the prices get near anything that most people would call normal with cards like Nvidia’s RTX 3070 and the AMD’s 6800 XT still double their MSRP.

However, it seems that we could finally see some light at the end of the tunnel between the crypto-crypto-crunch in China and the recent release of new GPUs from Nvidia in earlier this month.