Izvestia published a report on the state of affairs in the Russian video card market. According to retailers, the cost of 3D accelerators in Russia has fallen by an average of 40% over the past three months. This is due both to a decrease in profitability from mining cryptocurrencies, and to the strengthening of the steering wheel. At the same time, the demand for video cards from gamers at some sites increased six times. And yet prices continue to fall.
“Now there is a tangible price reduction for the current generation of graphics accelerators”, – Ozon said and added that the average price of the Nvidia GeForce RTX 3070, 3070 Ti and 3090 is about 40% less than in March this year and in June 2021. The novelty of this year – the RTX 3090 Ti has fallen in price by the same 35-40% only in the last month – since the end of May.
Gamers have already taken advantage of the fall in prices – for example, for the calendar month from May 22 to June 21, sales of video cards for Wildberries increased 6 times compared to the same period last year. However, even such an increase in demand did not lead to an increase in prices, as gamers are not ready to overpay for equipment, experts explained.
The greatest contribution to reducing the cost of video cards is made, of course, by miners. With the fall in cryptocurrency rates, it becomes less and less profitable to mine them, so the former farms end up on the secondary market.
The profit of miners depends on many parameters – the cost of electricity in a particular region, the performance of a particular farm, the cryptocurrency that the miner produces – is it bitcoin, ethereum or some other altcoin.
If, for clarity, imagine that you are mining the same ethereum in your apartment in Moscow (at a rate of 5.9 rubles per hour) and using the GeForce RTX 3080 for this, then in a month one video card will allow you to earn 2.5 thousand rubles. At a price of even 105 thousand rubles, the miner will need 3.5 years to recoup it. If he bought it at the peak of prices for 145 thousand rubles, then the payback period rises to five years.
Since January of this year alone, the drop in net profit from mining has amounted to about 92%, one of the participants in this market told Izvestia on condition of anonymity. In January, when the price of bitcoin floated around the $42,000 mark, the net profit per coin was $24,000; now it has dropped to $2-3,000, he noted.
“Speaking specifically for my small farm, I can say that mining for me and my partner is now approaching a critical payback point. For us, the lower bar is $18.2 thousand per bitcoin. Below this mark, we begin to go into the negative – elementary electricity eats up more money than mining brings.— continued the interlocutor of the publication.
If the fall of cryptocurrencies does not stop, used and new video cards that were in the hands of miners and resellers will continue to enter the market. This means prices will continue to drop.