The “mining circle” is ebbing, consumers are getting closer to “graphics freedom”?

The user who plans to “pick up” under the “mining disaster” is incredibly cautious and careful, sharpening his eyes.

The "mining circle" is ebbing, consumers are getting closer to "graphics freedom"?

On May 12, Musk, who has been known to “bring the goods” in the cryptocurrency world from time to time, tweeted that Tesla was temporarily discontinuing bitcoin transactions due to concerns about the “rapidly increasing use of fossil fuels to mine bitcoin.

This sudden “backlash” sent the price of bitcoin down in response.

A week later, a number of Chinese industry associations jointly issued an announcement requiring member institutions not to conduct virtual currency trading exchanges and other related financial businesses; Internet platform companies not to provide online business premises, commercial displays, marketing campaigns, paid diversions and other services for virtual currency-related businesses.

On May 19, the price of bitcoin plummeted by 30% during the day, hitting a low of $30,500 per unit, down more than 50% from a high of $64,838 on April 14. On May 20, Bitcoin barely made it back to $40,000.

However, with the issuance of a document by the relevant ministries on the 21st, which called for strengthening the supervision of financial activities of platform companies and cracking down on bitcoin mining and trading, the virtual currency market price “flash crash” again, with bitcoin dropping $3,000 in the short term.

On May 25, the price of bitcoin rebounded by nearly $3,000 after Musk, who once again “made a demon” of himself, called for clean energy mining. In just two weeks, various virtual currencies represented by Bitcoin have experienced several rounds of “roller coaster” style ups and downs. Looking at such a “volatile” cryptocurrency “situation”, also let the miners and mining machine business began to panic.

The vivid memory of the “mining circle” collapsed room
On May 25, when Knowing Notes came again to Huaqiang Plaza in Huaqiang North, Shenzhen, it was found that the second and fourth floors of the stalls operating mining machines were no longer the noisy situation they were a few months ago. During most of the day, only one or two stalls had sporadic customer inquiries.

The "mining circle" is ebbing, consumers are getting closer to "graphics freedom"?

“The bitcoin price has been turbulent this year, but there are still people asking for miners, and it wasn’t until ten days ago that the number of people asking started to decrease.” One of the mining machine merchants, Xiao Xu, told Understand Notes that the last two weeks of bitcoin price turmoil have been rare in history. For the majority of miners, it’s been a “mining disaster.

Xiao Xu said that in the last two weeks, the stall has not sold a single bitcoin mining machine, and other mining machine stalls in the square are not much better. Whenever a passerby passes by his stall, he will stand up and solicit, “Do you want to see a mining machine? There are all kinds of mining machines.”

What is puzzling is that Xiao Xu, the businessman who talked about the bitcoin “mining disaster,” can actually talk and laugh freely. The “mining disaster” has led to a sharp decline in sales and consultation of mining machines, a meter counter merchants are not anxious?

The company’s business is a bit of a business, but it’s also a bit of a business,” said Xu, “We’ve never seen anything like it. Three years ago, the price of bitcoin plummeted, leading to a stagnation in sales.

The situation in 2018, when the price of bitcoin was “cut” and the mining machines were stalled, still seems to be fresh in Xu’s mind. At that time, a large number of mining machine only one or two discount clearance sale, Huaqiang North originally hundreds of mining machine stalls, stores have also been closed store withdrawal, lucky “survival” of the stalls are almost transformed to sell other digital products.

“Nowadays (mining machine) merchants, the basic will not pile inventory. Are customers to order, only to take the goods, who do not press goods.” This is why Xu believes that this bitcoin price turmoil, mining machine demand sharp decline, the impact on the mining machine business is at best only a reduction in business income, not to the inventory of products stalled, resulting in a total loss of money.

Bitcoin’s price volatility seems to have less of an impact on the mining business than it did three years ago. At the same time, in response to the mainstream virtual currency price turmoil represented by bitcoin on the demand for mining machines, the last two weeks, including Xiao Xu, many mining machine stalls, have been selling up the very popular hard disk mining machine.

“Hard disk miners are mainly for Chia (Chia) coins, which only became popular in April, and currently have high coin prices and low arithmetic requirements.” He told Understand Notes that Chia coin is relatively niche compared to mainstream virtual currencies such as Bitcoin, and the scale of miners engaged in mining is not too large.

The "mining circle" is ebbing, consumers are getting closer to "graphics freedom"?

In Huaqiang Square, we also saw a large number of stalls with billboards advertising “Chia hard drive miners”. But when asked if the demand and sales of mining machines will continue to rise if the price of bitcoin rises again (plus new digital coins emerge), Xu shook his head: it’s hard, the business is at its end.

After three years of bitcoin price “stop” plunge, still able to “rise again” mining machine market, now only “the end of the road”?

The domestic “mining community” is completely ignored
In Huaqiang Square, know notes to see some mining machine stalls have quietly removed the prototype for display, re-displayed hard disk, memory, chassis and other accessories for saving machines. Only a few of them have a signboard labeled “a certain mining industry” to show that the stall had a mining machine for sale.

“The sign should also be removed at the weekend, and it doesn’t make much sense to do hard disk mining now.” The merchant Aqiang told understand notes, virtual coin price turmoil, for the “coin circle”, “mining circle” the impact is only temporary.

As the price gradually stabilizes, the demand for mining and mining machines will gradually pick up, and businesses should “rise again”.

However, the State Council’s financial committee announced a severe crackdown on mining, which undoubtedly gave the “mining circle” a complete “death sentence”. Even if the emerging virtual currency is sought after by some miners and investors, the price situation is good, but the process of virtual coin output, also from the “mining” behavior, inevitably there are risks.

As long as it’s still a mining machine, sooner or later, the relevant regulatory authorities will also let the end.” In the eyes of Qiang, because the price of bitcoin and other mainstream virtual currency “turbulence” to pile up sales of Kia hard disk mining machine, is undoubtedly a cover-up behavior.

Although the role of short-term demand, businesses selling hard disk mining machine can make a small profit, but is destined to be difficult to last. A strong guess, the relevant departments to crack down on mining behavior, the first to “mash off” will be Huaqiang North mining machine business, “after all, Huaqiang North is a mining machine distribution center. When the pounding of parallel-imported cell phones, the first also from Huaqiang North down.”

These views are precisely the majority of Huaqiang North mining machine merchants, including Ah Qiang, recently eager to take off the stall big signboard “demineralization” of the underlying cause.

Even if someone soliciting mining business, businesses are basically shouting by mouth. As for how long you can shout, Qiang thinks more than half a year, less then three or four months.

In the meantime, with the price of Bitcoin and other mainstream virtual currencies in turmoil, the industry’s enthusiasm for mining has waned, and one after another, a large number of mining miners have changed hands and sold second-hand mining machines. But unlike three years ago when bitcoin “stopped” plummeting, Huaqiang North businessmen are generally cautious about mining machine recycling.

A strong confessed that even if only one-fifth of the price of a brand new miner, he is currently afraid to recycle, to avoid a large backlog of used miners in their hands due to low demand for domestic miners. In front of this round of bitcoin “mining disaster”, any business is not sure to sell used mining machines at low prices.

“The mines have either moved to Southeast Asia, and the miners who are mining coins at home, I believe, are afraid to take the risk to continue mining.” Another mining machine business Jiezi told understand notes, in view of the high cost of mining, domestic two or three years ago, a lot of miners began to move their mining farms to Southeast Asia and other places. Now with the regulatory turmoil, I believe there will be a large number of mines moving to overseas areas.

If a mining business wants to crack the “end of the road”, they can only go overseas with the miners to operate the mining business, but the business risks they face have also increased. With the regulatory landing, operating a mining machine stall, perhaps will once again disappear in Huaqiang North, and difficult to make a comeback.

The "mining circle" is ebbing, consumers are getting closer to "graphics freedom"?

The “mining disaster” under the user will welcome the “graphics card freedom”?
The price of Bitcoin and other mainstream virtual currency turmoil, as well as the relevant ministries to crack down on mining behavior and “tremble”, and not only Huaqiang North mining machine business.

Recently, there is a net rumor that due to mining, mining machine demand continues to weaken, RTX3060 graphics card price reduction of 1500 yuan. Some channel merchants even sold 30 RTX3070 graphics cards wholesale to retailers at a price of $240,000, which translates to $8,000 each, in order to get rid of them as soon as possible.

The rumors came out, a large number of consumers clapped their hands and praised, more just need users said the new computer at home empty graphics card slot to save.

Indeed, since the beginning of this year, because the price of bitcoin rose sharply, the market mining sentiment is high, resulting in a significant increase in the price of graphics cards, and even a card difficult to find phenomenon.

According to some media reports, the first four months of this year, Nvidia’s new 30 series graphics card prices rose above 10,000 yuan, the price increase of more than double, and often out of stock. Inevitably, just need users can only buy the previous generation of graphics cards, and led to the listing of several years of the previous generation of products with the price increase, the same phenomenon of stockouts.

Now, with the industry regulatory boots on the ground, just need users look forward to the fear of a large amount of inventory rotting in the hands of the channel “crooks” to sell a new generation of graphics cards at a reduced price, so as to achieve the goal of “graphics card freedom”.

So, the graphics cards covered in the hands of the channel merchants, will soon appear on the market?

“Should not, stalls, retailers low price in the wholesale channel to get graphics cards, should cover a period of time.” As an onlooker, Huaqiang North “backpacker” Xiao Liu for the stall business model, apparently already know it well. He told understand notes, at present, although the channel business fears graphics card smashed in their own hands, will release a batch of inventory at a low price, but basically will let the stall wholesale away.

And before that, there are a large number of miners selling second-hand graphics cards dismantled from the mining machine, the same also flowed into the hands of some stalls. As long as the accessory retailers, stalls do not put out graphics cards, a card hard to find phenomenon may continue for a long time, as for the stall merchants to create the illusion of “graphics card shortage”, in order to prioritize the sale, clean up the inventory of used graphics cards.

The "mining circle" is ebbing, consumers are getting closer to "graphics freedom"?

“Mining cards can not be used, has become the consensus of many saving enthusiasts. But the new card is out of stock, used also have to use.” Xiao Liu said, because the new generation of graphics cards will be out of stock for nearly six months, there is an impatient just need users turned to buy used graphics cards, which naturally intermingled with a part of the color of new or refurbished, removed from the mining machine used mining cards.

As long as a large number of used mining cards and refurbished graphics cards inventory has not been cleared, retailers naturally will not easily release new graphics cards. Even at the moment, there is just a need for users to be able to buy a new generation of performance graphics cards at a relatively reasonable price, there is no guarantee that they will not get refurbished goods.

In the e-commerce platform, understand notes to see, at present, most brands belong to the official flagship store, 30 series graphics card part of the model still has the phenomenon of missing goods exist. As for the unofficial digital accessories store, the price of the new generation of performance graphics cards has been slightly reduced, but it may be difficult to know whether the product is “new” just for consumers.

The only thing you can be sure of is that due to the lack of graphics card capacity supply, it will still take a long time for users to get back to the original market price of graphics cards and achieve true “graphics card freedom”. The only thing you can be sure of is that the users are still a long way from the original market price and realizing the real “graphics freedom”.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/the-mining-circle-is-ebbing-consumers-are-getting-closer-to-graphics-freedom/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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