Graphics Card Prices Fall As Miners Ditch Farms

Graphics cards

The price of graphics cards continues to maintain a clear downward trend. This is some good news that just a few weeks ago, would have seemed impossible. In fact, we could not even find stock of most of the models sold by NVIDIA and AMD.

The price of graphics cards was ridiculously inflated till just about a month ago. It looks like a normalization phase has begun. The stocks are now returning to normal levels and soon there may be discounts available on these graphics cards as well. The price of graphics cards had skyrocketed due to an explosion in cryptocurrency mining beginning at the end of last year.

Several Chinese sources have confirmed that a good number of the cryptocurrency miners that operated in that country have started abandoning their mining farms and that therefore they are beginning to sell their second-hand graphics cards in large quantities at a price that, frankly, it is “reasonable.” Again I use quotes because buying a graphics card that has been used for mining for a long time is not a good idea.

That the miners are selling their “most precious treasure” is a clear indicator of the turmoil in the cryptocurrency mining sector, and is a preview of the future that awaits the cards sector in the short and medium-term graphs of general consumption.

When the previous bubble occurred, it took several months for the situation to normalize, both in terms of stock and prices. Given that this bubble has been more serious, but also more intense, I believe that it is likely that between the end of this year and the beginning of 2022 the prices of graphics cards, and the availability of these, will have returned to the levels recommended by the manufacturers.

Should you be buying graphics cards now?

I understand that more than one user will have been excited to see that the price of graphics cards is falling significantly, and it is likely that someone has been tempted, and that they are thinking of buying a graphics card because they need it for a long time, as a precaution against a possible new takeoff of cryptocurrency mining (something that we cannot rule out either), or simply because you want them now and do not want to wait any longer.

I do not have a crystal ball with which to see the future, but right now everything seems to indicate that prices will go down some more and that it is only a matter of time until there is an international wave of new generation graphics cards. in the second-hand market. When that happens, the price crash will be very fast, leading to full normalization of prices.

We must also take into account that both NVIDIA and AMD have confirmed that they are increasing production, and the former has taken measures to reduce the performance of the RTX 30 in mining, which together with the fall in the value of cryptocurrencies makes these less and less attractive for miners. With all this in mind, let me give you three tips to avoid making mistakes or throwing money away in the current situation:

  1. Be clear about the recommended price of the product you are going to buy, and assess if it is really worth paying more for it, or if on the contrary, it is better to wait. For example, an RTX 3060 has a suggested base price of 335 euros, so paying 600 euros for it would be a huge mistake. On the other hand, buying an RTX 3070 for that price, 600 euros, would be reasonable, since it has a recommended price of 519 euros.
  2. You can wait? If the answer is yes, wait. If all goes according to plan, it is possible that the prices of some graphics cards will end up being reduced even below the recommended level. In case you can’t wait, keep in mind what we said in the first tip.
  3. Do not rush, buy the model you really want. Haste, and anxiety, are a bad combination. You may need, or want, a specific model, but with the madness that the price of graphics cards has experienced, now you are willing to buy other models that do not cover your needs well, or that you do not like. Wait, do not buy because, in the end, you will regret it, since you will have made a large investment to buy something that you really did not want.

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