Because the Ethereum network’s proceed to a proof-of-stake (PoS) consensus mechanism drives adoption from institutional investors, the costs for graphics processing units (GPUs), frequently employed for mining cryptocurrencies like Ether (ETH), go lower in China.
Following a historic Ethereum Merge on Sept. 15, the formerly highly searched for-out Nvidia GeForce GPUs have grown to be considerably cheaper, according to some report through the South China Morning Publish. Peng, a Chinese merchant, gave the RTX 3080 for example because the GPU’s cost dropped from $1118, or 8,000 yuan, to five,000 yuan within three several weeks.
Based on Peng, when Bitcoin (BTC) mining what food was in its peak in China, mining companies used to do GPU shopping sprees. But right now, the merchant stated that nobody is buying new computers, not to mention new GPUs.
Another merchant known as Liu also highlighted that low-finish RTX 3080 cards from brands like MSI also came by around 2,000 yuan when compared with prices two several weeks ago. Based on Liu, this can be highly affected by the hype all around the Ethereum Merge.
The in-store retailers aren’t the only ones impacted by lower demand. Shopping online platforms Taobao and JD also have proven declining prices of GPUs. RTX 3080 cards on these web sites have gradually gone lower in prices with a couple of hundred yuans when compared with the prices three several weeks ago.
Following the Ethereum Merge, the blockchain transitioned from the energy-intensive proof-of-work (Bang) mechanism towards the PoS layer known as the Beacon Chain. With this particular, miners that accustomed to process transactions and convey blocks are substituted with ecosystem participants who’d stake ETH to get the brand new validators from the network.
Meanwhile, a Bang fork known as ETHPoW, went live because the Merge commenced. However, despite its tries to support the Bang consensus, it endured intricacies if this launched, decreasing the cost of their ETHW token by 65%.