China bans crypto fully! Could this newest blow to cryptocurrency result in one other GPU price drop after latest Nvidia GPU and AMD GPU price will increase? How will this have an effect on graphics card availability within the wider world outdoors of China? Read on to seek out out extra.
Recent graphics card price motion & GPU availability
As we not too long ago reported in our piece on 3D Centers newest findings about graphics card costs and GPU availability, after reaching their peak in May 2021, we noticed GPU costs fall considerably (Nvidia GPU costs particularly) and availability improve up till July 2021, at which level this pattern started to reverse. By September 19, 2021, each AMD and Nvidia graphics card costs had been again as much as about 170% MSRP, although nonetheless nicely under their May peaks, this was a disappointing change for these hoping to get their palms on a GPU for Black Friday / Christmas 2021.
PBOC bans: Bank of China bans crypto
For a number of months now the Chinese authorities has made it tough for its residents to mine and commerce in crypto. Up till now this was completed in a reasonably piecemeal method, various in its enforcement from area to area. Now hoever the PBOC (Peoples’ Bank of China) has introduced it will likely be unlawful for Chinese residents (not simply residents) to buy cryptocurrency domestically or from abroad. Taking issues to an both additional excessive: Chinese residents have been prohibited from even being related to the advertising of cryptocurrencies or giving tech help to crypto companies.
Following the primary partial Chinese crypto ban again in May 2021, the price of Bitcoin dropped by 20%.
At the time of writing, the bitcoin price drop during the last 24 hours is 6%.
How might China FUD have an effect on GPU costs?
For these uninitiated into crypto lingo, FUD means Fear Uncertainty & Doubt as they’re related to the market’s confidence in a crypto forex. We’re already seeing the primary hit to Bitcoin costs as mentioned above and different cash may also get hit by means of this newest setback, given how central China is to crypto mining.
Crypto miners have been a giant supply of demand for graphics playing cards, particularly Nvidia GPUs, inflicting the price of graphics playing cards to skyrocket, and contributing closely to the worldwide graphics card scarcity.
After the Chinese crypto clampdowns earlier in the summertime, we noticed a raft of second-hand Chinese Nvidia GPUs promoting on the Chinese market, as crypto miners accepted the inevitable and bought their mining rigs.
There was additionally a noticeable drop in graphics card costs and an enchancment in availability globally, as you possibly can see within the graph above.
There is little doubt that this newest ban can have an analogous impact on GPU costs – if demand is decrease and provide stays the identical, then graphics card costs will drop, although by how a lot and for the way lengthy is anyone’s guess. It’s impossible to carry an finish to the graphics card scarcity, however confidently, the silver lining of the China crypto ban may be that a few of us might be able to get graphics playing cards on Black Friday!
Keep locked into WePC for additional updates on the worldwide graphics card scarcity and GPU price information.
