Orders for the purchase of graphics cards and ASIC miners may increase sharply for some time due to severe flooding in Sichuan province. According to the local publication Economic Daily News, this is where 70% of China's mining farms are located.
Over the past few months, graphics card supplies have been declining due to lower demand, which is great news for gamers who are finally able to purchase graphics cards below the manufacturer's recommended price. And just a few months ago, processor prices were very high due to skyrocketing cryptocurrency prices.
Most graphics card manufacturers, including MSI, TUL and Gigabyte, faced a decline in shipments of almost 40% compared to previous months. Gigabyte even warned investors that it expects demand and average selling prices to decline over the next quarter.
However, if the damage to mining equipment turns out to be as severe as they say, demand will temporarily recover to last year's levels. According to the news publication DigiTimes, the flood damaged tens of thousands of mining systems, leading to a significant decrease in the network hashrate. The bitcoin mining hashrate has dropped from ~43TH/s to just over ~30TH/s, which is more than 25% of the world's mining.
Not all of these systems perform calculations using graphics cards. Bitcoin mining is dominated by custom-made application-specific integrated circuits (ASICs) to mine coins. According to reports, Chinese companies, in particular ASIC manufacturer Bitmain, hold nearly 50% of the total mining power of Bitcoin.
Ethereum is still a GPU-dependent cryptocurrency, so the company Nvidia has a chance to sell off the remaining stock of processors, but the Ethereum hashrate has not decreased as much as the Bitcoin hashrate.
Thus, due to flooding and damage to mining equipment, only the supply of ASICs may increase, and the demand for GPUs may remain the same until the launch of the next cards generation GTX 1180, planned for August-September.
According to pcgamesn.com
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