Thursday, May 19, 2022

Chinese Crypto Miners Dumping GPUs On Xianyu

Soon after China’s crackdown on the Bitcoin mining industry, the Chinese crypto miners started dumping the graphic processing units (GPUs), which they used for mining a Bitcoin, in a second-hand market.

For the past one and a half months, many Chinese crypto miners had posted an advertisement on the Xianyu app, one of the largest marketplaces in China for secondhand goods, for selling the stacks of GPUs.

It is to be noted that the Chinese State Council only banned Bitcoin trading and mining activities, but the provincial governments targeted the wider mining sectors, as it ordered the power plants companies to cut their ties with virtual currency mining farms.

The decision not only affected the Bitcoin mining farms but also, the GPU mining farms. However, compared to the bitcoin mining facilities, GPUs are less energy-intensive.

Since, China announces the crackdown on crypto mining-related activities, Ethereum’s hash rate came down by more than 20 percent in the market.

This happened because Ethereum gets most of its hash power from GPUs and the Ethash ASIC miners.

The value of each GPU on the selling platform varies from one another because the product has already been used. However, in February 2021, the situation was totally opposite because, at that time, the Ethereum miners needed the desktop GPUs but due to its shortage, the miners turned to gaming laptops with in-built GPUs.

Recently, one of the owners tried to sell a batch of RTX 3060 GPUs on the Xianyu app. The GPUs were of different brands and their initial price range was between $336 to $450 each. However, as the product went live on the marketplace the potential buyers bids it for the cheaper rate, therefore, the owner decided to further lower the value to $270.

The owner with a picture of the mining farm facility in a post, said, “Can only accept in-person transaction for a large bulk buy and can be traded once after the facility is fully cleared out.”

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