Crypto is crashing, and that may make GPUs more affordable

Large and small cryptocurrencies are currently struggling, with unprecedented declines and losses that could take a while to bounce back.

Since the prices of graphics cards are often affected by the crypto market situation, can we expect an improvement in the GPU shortage condition?

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The crypto market is quite volatile on its best days, but the past week or so has been one of the toughest the cryptocurrency world has ever seen. After the high peaks of November 2021, the major cryptocurrencies – Bitcoin and Ethereum – both took a very hard hit. As usual, such blows reverberated throughout the market, and it would be hard to find a coin that hasn’t been hit. As a result of this crash, approximately $800 billion in market value has disappeared from cryptocurrency assets, Reuters reports.

It’s no mystery that graphics card pricing is a delicate issue these days. With the ongoing GPU shortage and the supply issues that come with it, it certainly doesn’t help that cryptocurrency miners tend to massively buy out capable GPUs for mining. However, as crypto prices plummet, we will likely see the shockwaves hit the graphics card market soon.

For those looking to buy a graphics card, the stars may be about to align. We’ll soon have Nvidia and AMD about to release their next-gen graphics cards, which – at least in theory – should affect the price of the cards that hit the shelves right now. Intel also plans to release new GPUs, but with all the recent delays and the fact that they can’t compete with the next-gen Nvidia and AMD offerings, that will only affect the mid-range and entry-level sections of the market.

In times of scarcity, PC buyers have had to deal with GPUs that sell out quickly, and when they’re in stock, they’re overpriced. Crypto mining certainly plays a role in this. With the cryptocurrency market in its current state, mining will become much less profitable, and the cost of a GPU and the maintenance of a mining farm may not be worth the money and effort under these circumstances. Ethereum will also be moving to a proof-of-stake model soon, although that’s a bit of a moving goalpost. If and when that happens, it will be another nail in the coffin for crypto mining.

As the demand for mining cards falls, the supply for regular users will naturally increase. Frequently used cards can also be put back on the market. However, the crypto market will most likely recover sooner or later and then we could see GPU prices go up again. It all depends on the offer.

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What happened and how did it start?

It is important to note that the financial market as a whole has been experiencing the signs of a so-called bear market for some time now, so the past few weeks have been tough for crypto. However, this massive crash brought Bitcoin to its current low of $28,000, which is less than half its value in November ($67,000 at its peak), and sent Ethereum down below $2,000 for the first time in nearly a year. fell. It all started with the destabilization of something called a “stablecoin” called TerraUSD.

Stablecoins are cryptocurrencies that are linked to a fiat currency, meaning they must maintain a similar value to that of a non-digital currency. In the case of TerraUSD (UST), unsurprisingly, it would be pegged to the US dollar. Unlike other stablecoins, UST used another cryptocurrency, Luna, to maintain its dollar peg. When Luna’s value mysteriously fell by a staggering amount, from $116 in early April to less than a dollar today, it dragged TerraUSD down.

At its lowest point, TerraUSD fell to 30 cents. Keep in mind that it should maintain a similar value to the US dollar, so a drop from about $1 to $0.30 is a huge drop for a currency often seen as a safe way to store money without yourself to the volatility of other cryptocurrencies. To save it, the creator of TerraUSD spent about $3.5 billion on Bitcoin. With such a huge amount of money suddenly hitting the market, the value of Bitcoin itself collapsed.

We are still in the early days of this latest crypto crash, and it’s worth remembering that while cryptocurrencies are struggling, the GPU shortage is being impacted by more than just high demand from crypto mining. However, as we’ve seen improvements across the board and with next-generation cards on the way, it might soon be a good time to start looking at some of the best GPUs.

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