Bitcoin saw a massive decline in its worth after China imposed new restrictions on crypto-currencies.
China warned crypto trading investors and banned banks and payment firms from providing their services related to crypto transactions.
Bitcoin is not the only crypto-currency that is currently facing a decline in its worth. Other digital currencies, such as Dogecoin and Ethereum also went down the slope right after China reiterated its ban on digital coins.
Graphic Cards prices expected to go down after the crackdown on cryptocurrencies
Graphic cards are the main source of mining digital currencies. For this reason, miners buy many GPUs to throttle their mining process which results in the shortage of both new and used GPUs from the market. This shortage is the main cause of graphic cards being sold at such high prices.
Crypto mining mostly depends on GPUs with high VRAM. Power consumption is also a huge factor in mining. Most GPUs do not necessarily have to be good for gaming performances if they’re only going to be used for mining.
Mining is a power-intensive process and it’s very important to keep the temperature in check. If you’re a gamer that mines on your gaming PC, you might want to check out the best CPU Air Coolers. These air coolers will allow you to control the temperature of your rig, so you can play games and mine crypto-currencies, without risking the life of your GPUs.
It is expected that the graphic cards will now see a decline in their prices following the recent crypto-market decline.
Gamers may now buy their favorite GPUs:
It was quite difficult to get your hands on a good GPU last year because of all the crypto hype and the massive surge in the worth of these digital coins. However, things are quite different now. After Elon Musk’s new statement where his company refuses to accept digital coins for their electric car purchases and China’s recent ban; things are looking good for gamers.
There is a chance that gamers will now be able to get their hands on their favorite GPUs at a reasonable price now since their prices are expected to decline.
Nvidia, one of the biggest names when it comes to GPUs, has now decided that they’ll introduce new graphics cards that are specifically designed for mining. They also announced that they will be introducing built-in restrictions for Etherium mining for their new graphic cards. Etherium blockchain is currently one of the biggest digital currencies, right after Bitcoin.
Etherium blockchain also announced that they will be transitioning from proof-of-work to proof-of-stake model which will require much less computational power and will mostly depend on the network of the miner to verify the transactions. It means that the Etherium mining process will not have to rely on graphic cards. However, this transition is expected to take some time, but it is also expected to make crypto-mining much more energy-efficient.
Chia Coin, a new crypto-currency is also making its name. The selling point of this digital currency is its unique storage-based mining process. It uses storage devices such as SSDs and HDDs to mine the currency. With the introduction of more currencies which don’t use the GPU as the main source of mining, we might see their prices finally falling in place.
These steps by Nvidia and Etherium might result in the decline of GPU prices so that the best gaming GPUs can finally go to the gamers at a decent price by the end of 2021.
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Cryptocurrency Banned by China
China declared crypto-currency illegal due to money-laundering back in 2019, when Bitcoin’s hype was at its peak. However, many people were still able to trade in digital currencies online from inside the country. This caused Beijing to take action and they released a warning on social media.
The issued warning stated that the traders will receive no protection if they face any losses from their crypto-currency trading and investment transactions.
Even though China is so strictly against crypto mining, more than 70% of Bitcoin mining is done in the country, compared to the rest of the world.
The authorities also claimed that digital currencies violate people’s asset safety, while also disrupting the normal economic and financial order.
Beijing has banned most digital currency exchanges in the country. However, people are still allowed to hold crypto-currencies.
China has always been quite against digital currencies and their recent actions have strengthened the idea. The superpower’s actions might also urge other countries and banks to take similar steps in the same direction.
Elon Musk’s U-turn regarding the acceptance of Bitcoin
A few months ago, in March, Tesla, Inc.’s boss Elon Musk announced that customers could pay for their electric cars via Bitcoin. The crypto-currency market received a massive boost and experienced a huge surge in their worth afterward.
However, in the last week, Elon Musk took a U-turn and declared that Tesla, Inc. will no longer be accepting Bitcoin for their electric car’s purchase.
Elon said he took the decision citing environmental concerns. He fears that the digital currency mining process is massively power-intensive. The electricity generated through coal and other fossil fuels which are used to mine these crypto-currencies are going to harm the environment in the long run.
Elon Musk also said that while digital currency is a great idea, it cannot come at a greater cost than the environment. He also added that his company will reinstate the decision once the crypto mining and transactions shifter to more reliable and sustainable energy sources.
Elon’s refusal over accepting Bitcoin is what started the downfall of the crypto-currency market this month. From there, it has been on a downward slope. Now, China’s ban also helped in bringing down the worth of digital coins.
Tesla, Inc. currently holds about $1.5 billion worth of crypto-currency, despite their refusal of accepting any more transactions and purchases for their electric cars.