Graphics Cards Fall in Price After China Mining Ban

Reading Time: 2 minutes
  • The price of graphics in China has dropped substantially since the government stepped up its efforts to ban cryptocurrency mining
  • Some cards have seen 65% reductions compared to recent weeks
  • Graphics cards are used to mine a number of cryptocurrencies, including Ethereum and Dogecoin

Graphics cards have fallen dramatically in price since China turned up the heat on miners and finally enforced their numerous bans. The South China Morning Post reported yesterday that graphics cards in China are selling for markedly less than they were prior to the enforcement of the ban, with some down around 65%, as demand has cratered following efforts from the government to outlaw the practice of cryptocurrency mining. The drop in the price of graphics cards will be great news for gamers who have complained for some time about the dearth of quality graphics cards and the prices asked by second hand sellers.

Graphics Cards Manufacturers Have Adapted to Demand

Graphics cards are used to mine several cryptocurrencies, including Ethereum, Dogecoin, and Monero, although Bitcoin mining cannot be performed on them. The popularity of crypto mining has led to the latest graphics cards being snapped up in bulk by crypto mining operations, leaving gamers unable to get their hands on them.

This has led the biggest graphics card manufacturer in the world, Nvidia, to create a chip specifically for crypto mining and introduce a crypto mining block on its newest cards in an attempt to dissuade crypto miners from buying up all the stock.

Chinese Gamers Get Discounts

Chinese gamers no longer face such frustrations however, at least for now, as the government’s crypto mining ban has dramatically reduced demand on stock of graphics cards. This has seen cards like Nvidia’s Quadro P1000 selling for 2,429 yuan ($376) on Monday, down from nearly 3,000 yuan ($465) in early May, and the Asus RTX3060 which is down to 4,699 yuan ($725) from its May peak of 13,499 yuan ($2,100).

Some China watchers believe that the ban is mainly for PR and won’t be enforced as strongly in a few months, meaning that Chinese gamers might want to strike while demand for graphics cards is low.