- Swaths of miners are being compelled to sell hoarded GPUs in the wake of a significant BTC and ETH price drop.
- Miners and café owners are now selling mining cards in bulk.
- The price of BTC has plunged below $25,000, which is below mining cost.
As Bitcoin and Ethereum cryptocurrencies are rapidly losing value, miners are forced to sell their hoarded graphics cards for profit. One high-powered computer and expensive mining equipment are required to mine Bitcoin. Currently, all three factors contribute to significant miner distress. The cost of mining one Bitcoin is now worth $25,000, which is above BTC’s trading price.
Many miners have taken to online auction sites to offload their GPUs en masse. Café owners who had been running mining operations as a side business are now considering selling the GPUs for profits amid the market crash. For instance, on Tuesday, pictures of mining grids flooded online on various Chinese internet services companies like Baidu (NASDAQ:BIDU) that was up for sale.
Crypto miners and internet cafe owners who bought huge amounts of graphic cards to mine are left with nothing but to sell their GPUs for as little as $300-$350.rs or junk them. Second, because Ethereum is moving from a proof-of-work to a proof-of-stake system, many miners are dissatisfied, necessitating them to look for another option. However, consumers were warned not to purchase these GPUs because they had been “abusively used for mining”
Bitcoin price witnessed a drop of over 66% from its all-time high and is currently trading at $20,775. This has forced miners to incur losses as the cost of mining one BTC is higher than its current market price. Ethereum’s value has also seen a significant decline, and it is now trading at $1,113, which is down by over 70% from its all-time high. Apart from mining equipment, the power used to mine cryptocurrencies is also becoming unprofitable.