China has strengthened its commitment to restrict cryptocurrency, with Coindesk reporting that Anhui, Gansu, and Henan provinces are following up on the crackdown in Sichuan and shutting down all mining operations they can find in the region. . With Sichuan already ranked as China's most prolific cryptocurrency mining province thanks to cheap electricity costs, it is estimated that the government ban could wipe out up to 90% of China's Bitcoin mining capacity. It is not clear if this will help in the long term, as investors and miners may look to relocate their operations abroad, but these policies should provide temporary respite in case of shortages. You may have heard over the past few weeks that China setting these tighter cryptocurrency restrictions is cause for celebration among gamers and PC builders, but what does that really have to do with them? PC games?
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Why do crypto miners need GPUs for gaming?
Most of the conflicts between groups are due to graphics cards; specifically the new GPUs released by Nvidia and AMD in the last 12 months. With a global shortage of silicon chips (caused in turn by manufacturing issues and high demand in almost every area of technology, from computers to cars to smartphones), there were already concerns about how much stock would be put into stock. Available to newer GPUs like the GeForce RTX 3080 before it was released, especially since it's still expensive technology, this latest generation of cards is more affordable than previous generation hardware. As a result, the best graphics cards have been purchased en masse for use in mining rigs for cryptocurrencies like Bitcoin and Ethereum. The process of using a GPU to 'mine' crypto is somewhat complicated for newcomers and can differ for each cryptocurrency, but we can break down Bitcoin mining in simple terms. What a Bitcoin miner does is check transactions to make sure users haven't tried to spend the same bitcoin twice by solving cryptographic equations using computers, in the same way they inspect for counterfeits in the non-digital world. This process involves validating the data using what is called the Secure Hash Algorithm (SHA) and adding transaction records to a public ledger called the blockchain. After miners verify 1 MB of Bitcoin transactions (also known as "blocks"), these miners can be rewarded with a certain number of bitcoins. Notice how we said "eligible" and not "guaranteed." Miners not only have to solve these cryptographic equations, but they also have to be lucky enough to be the first to do so in order to earn bitcoins as payment. As such, crypto mining is as much about luck as it is about the availability of hardware to constantly run the equations.
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The spoils of (crypto) war
This is where graphics cards come in. The speed at which the SHA process completes is measured by hash per second (H/s), also known as the "hash rate". GPUs are much more efficient in this regard than CPUs or any other hardware, and generally the more powerful the GPU, the faster the hash rate (although the hash rate does not make the GPU more powerful). . This is why Nvidia has implemented a hash rate limiter on almost all cards in the RTX 3000 series family, having initially introduced it with the GeForce RTX 3060. This card was selected for its affordability, priced suggested retail of around €329 (about €240, AU$430). Since crypto miners are looking to make money rather than spend it on hardware, very expensive GPUs like the GeForce RTX 3090 are less likely to be purchased because they are an expensive investment. Resellers saw competition between miners and gamers for limited card inventory, and began using bots to clear available stock and inflate prices, some nearly three times their recommended MSRP for lesser, more popular products like the GeForce RTX 3080. In fact, China's decision to shut down mining operations has had other ripple effects to discourage miners from relocating elsewhere, with the price of Bitcoin falling significantly due to their actions. This makes relocation the wrong investment for many, as it's unclear whether the proceeds from the move would outperform the sale of IT equipment and prevent money-spilling operations. Although Bitcoin isn't exactly banned in the country, Chinese banks haven't been able to manage Bitcoin since 2013, with China citing environmental policies, concerns about cryptocurrency's volatile price, and its potential use in illegal money laundering operations as grounds for a crackdown. . . .
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The respite we needed
Thanks to a combination of the hash rate limiter and China shutting down mining operations, gamers and PC enthusiasts were finally able to see the market start to settle after months of scrambling to get hold of the limited stock. available. If you're happy to take a chance and buy second-hand, there's good news on that front, too: Rather than opt for a relocation, some miners have flooded the market for used GPUs in the past. In recent weeks, with announcements for the GeForce RTX 3060 card being advertised starting at 1760 yuan (around $270 / £195 / AU$360). It has been said that the collapse of cryptocurrency prices will lead to a greater availability of new and used GPU stocks, and with so many deals closed, the West is expected to start seeing the benefits in the coming months. If you were intent on getting a GeForce RTX 3070 for your platform, it might be time to start looking at pricing. The best graphics card deals right now
