The cost of video cards has fallen by 57% due to a decrease in income from cryptocurrency mining

According to Tom’s Hardware, GPU prices have fallen by 57% since the beginning of the year and continue to fall due to the decline in profits from cryptocurrency mining. Thus, in June alone, the cost of video cards decreased by 14%.

Tom’s Hardware analysts compared the current price of Nvidia graphics cards with the suggested retail prices (MSRP). The price of GPUs on Ebay has decreased more than that of retailers, all due to the decline in the ethereum hash rate. Miners who no longer receive the desired profit disconnect their graphics cards and sell them on retail websites.

Mining directly depends on the value of cryptocurrencies in dollars, as miners pay electricity bills and other current expenses in fiat. Since the beginning of 2022, the value of Ethereum has fallen by 72%, which has negatively affected miners' income. Also, the constant rise in electricity prices leads to a decrease in profits. Accordingly, in order not to lose all their investments, most miners see no other solution than to sell video cards (which is why the price of them continues to fall). Thus, according to Digiconomist, the electricity consumption for Ethereum has fallen sharply: from a peak of 94 TWh per year to 46 TWh per year, which is about the annual consumption of Qatar.