They say that one man’s trash is another man’s treasure, and it seems that the same works for luck and opportunity.
While the sad reality is that the only reason for GPU prices dropping is the crypto crash, the reality is that we only have the opportunity to look at that from the bright side.
At the moment, we know three things:
- Global sales of GPUs have dropped
- A lot of units are left in stock
- Miners are selling off cards to recoup losses
With such factors combined, it is certain that the prices of graphics cards globally will drop significantly.
Many online retailers are lately using dynamic pricing models, which automatically adjust their prices to market trends, which will make prices fall in some places faster than in others, but in the end, we are expecting to see a significant drop everywhere in the forcible future.
For gamers, this means that high-end models will be available at very affordable prices, even dropping below what mid-range cards went for only a month ago. Hopefully, this will push game developers as well to push out new and more interesting titles.
Crash of the Crypto Market
Although many people today refer to the rise and fall of crypto during the pandemic as an Icarus flight, the truth is that few expected anything similar to happen. Prices of major cryptocurrencies like Bitcoin fell to pre-2021 levels, similar to Ethereum.
Newer and less established coins like Terra and Luna fell to zero, completely losing any market value and leaving ICO investors without anything, and their founders with very little to show for it.
Finally, some blockchain-based products like the Bored Ape NFT, connected with the Bored Ape Yacht Club came under attack from hype scams organized on the dark web.
Aside from the significant drop in interest in the product, the founders faced orchestrated accusations of being fascist.
Regretfully, when it comes to prices of crypto, and subsequently GPUs going back up, the fact that bank rates have reached rock bottom doesn’t help the situation. Investors, including those in crypto, are trying to find more stable options for their money.
How Much will GPUs Price Drop?
At the moment, some of the GPUs available have dropped in price between 25% and 33%, and the expectation is that this is only half the way for retailers and manufacturers. Prized Nvidia RTX 3080 cards can be found for under $800 for the starting models.
It is impossible to know exactly how much the end value of these cards on the market will be. It is certain that at one point there will be enough gamers to cover the supply, but the main question is where that price point is.
Manufacturers and retailers will try to hold it as much as possible, but there is also the question of a spike in supply with former miners selling off their cards on the market, usually for much less than the MSRP.
Is It Okay to Buy Used GPUs?
This is always a difficult question. While mining does put a strain on graphics cards, most of the models we are seeing flood the market today haven’t been in use for more than six months.
This makes them viable for gaming for at least a couple of years, especially at a good price.
But, this only refers to the high-end graphics cards bought by miners as an investment. When it comes to enthusiasts and developers, some cards might have been active for more than two years, rendering them problematic at best.
Overall, asking how much time the card has spent in the mining rig is a good question you should pose to the seller if you are buying a used GPU. But, the fact that it was mining shouldn’t dissuade you from a bargain if you can find one.
Will the Price Jump Back?
Crypto is here to stay, especially when it comes to Bitcoin and similar stablecoins. Unlike blockchain products that are predominantly vanity purchases, such as NFTs, crypto has value in international and online transactions that have already been established.
As such, the price will first stabilize and then continue to grow.
But, the main question is how long it would take for the interest from investors in crypto to grow back to the spring of 2022 levels? With the pending global resection, this isn’t likely to happen soon and is highly unlikely to be before the end of the year.
For crypto miners, this means a change of pace and searching for means to survive before the next rise. For investors, this means looking for greener pastures to use their money.
And, for gamers, this means enjoying games with better graphics at more affordable prices, at least for now.