How Ethereum merge reduces GPU prices || Crypto news
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GPU (Graphics Processing Unit) commonly known as Graphics card is a hardware device used for Video gaming in Computers and Mining in Cryptocurrency.Most of them uses bundle of high power Graphics card to do the process of mining faster and in efficient way. So for Miners, GPU is an essential one to do their mining process. In the covid pandemic situation most of them started Mining bussiness from their home because it is promoted as one time investment with life long profit. Due to heavy competitions, previous Miners of Cryptocurrency increased their mining process by increasing huge number of GPUs to attain stable position among Miners.
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Reason for GPU price hike in the past two years
There are 2 reasons for GPU price hike
1) Sillicon Shortage
Major graphics card producer like Rtx, Nvidea,Geforce, Mti are Chinese companies also major Sillicon producer in the world is China. During the covid pandemic period many industries are closed in china. It creates a shortage of sillicon production. Sillicon shortage not only affects the GPU it also affects most of the Electronic components, ICs which results in increase in prices of electronic appliances. But now the conditions are normal and Sillicon is available at normal rates in China.
2) Increased Miners in Cryptocurrency
During covid period many having interest in Mining because it is popular for the word One time investment long term Earning in that time. So many tried mining of Cryptocurrency in small scale and large scale by buying GPU for minng process.
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Due to sillicon shortage and increased demand of GPU by Miners, the GPU price increed by $100 to $500.
By the recent change of Ethereum from proof of work to proof of stake the use of GPU reduced massively. So the demand of GPU also massively reduced. Now the prices of GPU drastically reduced to lower level. All the high performance GPUs are reduced from 30% to 60% in their prices. Highly popular RTX 3080 GPU price has reduced from $1100 to $700 in China. As the research reports that, GPU price will again reduce.
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