WARNING..GPU CRASH Coming and THIS Is WHEN... In a recent video, the discussion revolves around an impending significant crash in the GPU market, led by a key event: Ethereum's transition from proof-of-work (PoW) to proof-of-stake (PoS). The host, Thiago from Classical Technology, suggests that those who believe the GPU market has already faced a downturn are mistaken, arguing that a more drastic change is on the horizon.
Key Insights from the Video
Major Market Shift: Thiago predicts that the Ethereum shift will cause a massive influx of GPUs on the second-hand market, primarily because many miners will be forced to sell their graphics cards since mining Ethereum profitably will no longer be viable.
Historical Context: The video cites the past GPU craze fueled by cryptocurrency mining, how prices soared due to unprecedented demand for GPUs, particularly during the last bull run in 2017–2018. Even though Nvidia tries to attribute sales to increased gaming demand during the pandemic, the core demand stemmed from mining practices.
Current Price Trends: There has already been a drop in prices this year, as demand from miners has waned alongside Ethereum's declining profitability for mining. Products like the RTX 3090 Ti, once considered premium, are now heavily discounted, reflecting a cooling market.
Upcoming Releases: With the anticipated release of Nvidia’s RTX 4000 series, Thiago argues that existing models such as the 3000 series will see further price declines. The announcement of new models often historically pressures older models’ prices downward, even without significant demand shifts.
Advice for Buyers: The video encourages viewers to hold off on purchases for the time being, as the potential market crash could lead to dramatically lower prices for GPUs. As the transition nears, buyers might find significant deals in the second-hand market as miners liquidate their stocks.
Conclusion
The video presents a compelling argument about the future of the GPU market, emphasizing a perfect storm of factors that could lead to unprecedented drops in GPU prices. As we approach mid-September, all eyes will be on both Ethereum's merge and Nvidia's next steps. If you're considering entering the market for a new GPU, waiting a little longer might yield better prices and availability. What do you think about the potential GPU market crash? Are you waiting for prices to drop before buying? Share your thoughts below!