CRYPTO NEWS: THE CHIEF EXEC OF CELSIUS GRABBED 10 MILLION USD.

PRIOR TO BANKRUPTCY, THE CHIEF EXEC OF CELSIUS GRABBED 10 MILLION USD. PRICES FOR GRAPHICS PROCESSING UNITS (GPUS), WHICH ARE FREQUENTLY USED TO MINE CRYPTOCURRENCIES LIKE ETHER (ETH), HAVE STARTED TO FALL IN CHINA AS A RESULT OF THE ETHEREUM NETWORK’S SWITCH TO A PROOF-OF-STAKE (POS) CONSENSUS MECHANISM.

PRIOR TO BANKRUPTCY, THE CHIEF EXEC OF CELSIUS GRABBED 10 MILLION USD:

THE CHIEF EXEC OF CELSIUS GRABBED 10 MILLION USD
THE CHIEF EXEC OF CELSIUS GRABBED 10 MILLION USD

THE BEACON CHAIN, A MORE ENVIRONMENTALLY FRIENDLY POS (PROOF-OF-STAKE) LAYER, REPLACED THE ETHEREUM PROTOCOL’S POW (PROOF-OF-WORK) LAYER AS THE CONSENSUS METHOD FOLLOWING THE ETHEREUM MERGER. HOWEVER, IT HAD IN UNINTENDED CONSEQUENCES AND DAMAGED GPU BUSINESSES WHO WERE PROFITING GREATLY FROM THE DEMAND FROM ETH MINERS.

ACCORDING TO SOUTH CHINA MORNING POST (SCMP), PURCHASES OF GPUS IN CHINA REACHED “THE LOWEST LEVEL IN HISTORY” AS A RESULT OF THE DECLINE IN ETHEREUM’S VALUE. SUPPLIERS WERE UNEXPECTEDLY FORCED TO REDUCE GPU PRICING BY THREE TIMES COMPARED TO THE VALUE PROVIDED BY GPU CARD PRODUCERS DUE TO POOR DEMAND FROM MINERS, WHO PREVIOUSLY PURCHASED PRICEY CARDS.

AS A RESULT, THE PRICE OF HIGH-END GPUS LIKE THE NVIDIA GEFORCE RTX 3080, RTX 3080 TI, OR RTX 3090 HAS DECREASED BY MORE THAN 37% OVER THE PAST THREE MONTHS, FROM 8,000 YUAN ($1,140) TO LESS THAN 5,000 YUAN ($712). THE PROOF-OF-WORK (POW) PERIOD OF ETHEREUM SAW A SURGE IN GPU PURCHASES.

THE PRICIEST GPUS SAW A MORE THAN 37% DECLINE:

ACCORDING TO A SOUTH CHINA MORNING POST STORY, THE HISTORICALLY MOMENTOUS ETHEREUM MERGER ON SEPTEMBER 15 HAS CONSIDERABLY REDUCED THE PRICE OF THE ONCE-HIGHLY COVETED NVIDIA GEFORCE GPU PROCESSORS.

PENG SAID, “EVEN IF THAT MODEL IS NOT APPROPRIATE FOR MINING, I HAD A CUSTOMER WHO BOUGHT AN RTX 3080 CARD FOR 9,400 YUAN AT THE END OF LAST YEAR, AND NOW HE HAS TO SELL IT FOR LESS THAN HALF THAT PRICE. DUE TO A NUMBER OF UNFAVOURABLE SITUATIONS SURROUNDING THE CRYPTOCURRENCY MARKET, LIKE THE DEMISE OF BITCOIN, CHINA’S PROHIBITION ON MINING, AND EVEN ADDITIONAL LOCKDOWNS BROUGHT ON BY COVID, THE SITUATION COULD CONTINUE TO DETERIORATE.

PEOPLE FROM CRYPTOCURRENCY MINING BUSINESSES WOULD ACTUALLY JUST STROLL INTO THE STORE WITH CASH WHEN THE BITCOIN MINING CRAZE WAS AT ITS HEIGHT AND TAKE ALL THE GRAPHICS CARDS WE HAD AVAILABLE. NOBODY IS NOW PURCHASING NEW PCS, MUCH LESS NEW GRAPHICS CARDS, ACCORDING TO SHANGHAI MERCHANT PENG.

NOT JUST RETAILERS ARE IMPACTED BY DECREASING DEMAND. GPU PRICES HAVE DECREASED ON TAOBAO AND JD, TWO ONLINE PURCHASING SITES. THESE WEBSITES NOW SELL RTX 3080 CARDS FOR SEVERAL HUNDRED YUAN LESS THAN THEY DID THREE MONTHS AGO.

LOW GPU COSTS DUE TO ETHEREUM MERGER:

OVER THE PAST SEVERAL YEARS, THE COST OF GPUS HAS INCREASED DUE TO CRYPTOCURRENCY MINING, IN PARTICULAR ETH MINING; BUT, AS THE ETHEREUM MERGE APPROACHED, PRICES STARTED TO DECLINE. DUE TO THE GPU MARKET DOWNTURN AND THE CRYPTOCURRENCY CRISIS, CHINESE RETAILERS HAVE REDUCED THE SUGGESTED RETAIL PRICE OF GPUS BY MORE THAN 33% IN THE PAST FEW WEEKS IN AN EFFORT TO MOVE THEIR INVENTORY.

SINCE THERE ARE SUCH LARGE PRICING DISCREPANCIES BETWEEN FACTORY AND RETAIL PRICES, GPU MERCHANTS ARE NOW OPERATING AT A LOSS. PRIOR TO THE MERGER, GPU COSTS WERE DECLINING BY 10% ON AVERAGE PER WEEK. WHILE MANY ONLINE SHOPS MAY CLOSE AS A RESULT OF THIS “CRASH,” FOR OTHERS IT MARKS THE END OF A TWO-YEAR NIGHTMARE IN WHICH RETAILERS DROVE GPU PRICES TO RECORD HIGHS DUE TO STRONG DEMAND FROM CRYPTOCURRENCY MINERS.

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CRYPTO NEWS: THE CHIEF EXEC OF CELSIUS GRABBED 10 MILLION USD.

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