- Prices for graph cards (GPUs) have fallen in China.
- GPUs are a popular crypto mining component.
- China has banned crypto mining in several provinces causing BTC hash rate to fall.
In recent weeks the Asian nation has clamped down on crypto mining activities. Several top mining provinces have even banned crypto mining. Some of the provinces include Inner Mongolia, Xinjiang, Yunnan, and Qinghai.
In addition, some crypto mining companies blocked crypto miners with mainland Chinese IP addresses. The companies reported that they made the move to comply with new Chinese government regulations.
With the top mining destinations no longer open for business, bitcoin’s hash rate has fallen. Reports claim that China accounts for about 65% of bitcoin’s hash rate. As such, the recent mining bans have led the top crypto’s hash rate to fall by about 30%.
Also, there is a decreasing demand for mining components like graphic cards. In fact, crypto miners use GPUs to increase the hash power for cryptos like Ethereum. This is because miners process complex equations to mine for crypto and validate transactions. As such, the more hash power a miner controls, the more likely the miner is to add more blocks. In turn, this leads to more rewards.
In the past, crypto mining had driven the cost of graphic cards to exorbitant levels much to the ire of gamers. However, Chinese e-commerce site Manmanbuy states that the Nvidia Quadro P1000 model, an entry-level graphics card, has gone down in price by almost 3,000 yuan. Similarly, the Asus RTX3060 has fallen to 4,699 yuan from 13,499 yuan in May. However, it is yet to be determined whether the new GPU prices will hold. Perhaps the prices will fall even further if clampdowns continue.