Russian mining is on the verge of collapse. “Crypto miners” sell video cards for nothing while they are still working

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The Russians began to get rid of equipment for mining. Due to the fall in the exchange rate of bitcoin and the strengthening of the ruble, it has become completely unprofitable to mine cryptocurrency – for some, the income from this “business” does not even cover the cost of electricity. As a result, a wave of offers for the sale of video cards, which allegedly never participated in mining, poured onto the electronic bulletin boards.

Russians are disappointed in mining

Russian miners began to massively sell video cards from crypto farms through electronic bulletin boards, writes Forbes, often for a third of the price for which they bought them. The desire of Russian miners to get rid of video cards in the shortest possible time was told by the participants of this market, who wished to remain anonymous.

The main reason is near-zero profitability. Many of those who not so long ago earned on the extraction of bitcoins and other virtual money now give all their profits to pay for electricity. In some cases, mining has become profitable amid high electricity prices and minimal production rates.

One of the interlocutors of the publication stated that the mining market in June 2022 decreased by about five times compared to March and April 2022. Indeed, in the late spring and early summer of 2022, the bitcoin rate showed one of the most rapid falls in its history, that began in 2008, dragging all other cryptocurrencies with it. By the time the material was published, the bitcoin exchange rate was about $20.43 thousand, with a maximum of $69 thousand in mid-November 2021.

Just a few years ago, bitcoin was the main source of livelihood for many Russians.

In addition, experts predict a collapse of an unprecedented scale for the crypto market. Of the 19 thousand existing tokens, only a few dozen will remain, and it is not yet a fact that these will be only the most expensive of them. Analysts call most of the virtual money useless garbage and believe that there are too many of them now, citing fiat currencies, of which there are only about 180 in the world. This can also affect the exchange rate of bitcoin and other tokens.

Get it before prices drop

The appearance of an avalanche of announcements for the sale of video cards in June 2022 also has its own reasons, and they are also directly related to money. The source of the publication said that June 2022 was not only a fall in the rate of cryptocurrencies – this month, video cards, including the top ones, also fell sharply in price. They are usually used in mining farms, since they can extract more cryptocurrency in one period of time compared to less expensive (and less productive) adapters.

In official Russian retail, top-end video cards are rapidly falling in price, despite the crisis

As an example, the publication cited the GeForce RTX 3090 card, Nvidia’s flagship solution, which suspended its business in Russia in the spring of 2022. If in March 2022 the prices for such cards, depending on the manufacturer of the modification, in some cases exceeded 500 thousand rubles, then on June 23, 2022, their prices in Russian retail started at about 170 thousand rubles.

The ruble also fails

The ruble exchange rate, which is strengthening almost daily, by June 23, 2022, has reached 53.4 rubles, makes its contribution. for one US dollar (statistics of the Central Bank of Russia). This is the maximum for the last seven years.

The vast majority of crypto exchanges and investors measure the bitcoin rate in US dollars. Accordingly, after February 24, 2022, and through March 2022, when the ruble rapidly depreciated and the dollar appreciated to more than 120 rubles, mining profitability in Russia was ultra-high.

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“I changed it (bitcoin – approx. CNews) at the rate of 5.2 million rubles. for a coin, – said the source of Forbes. “Although at that time bitcoin was worth about $40,000, which is far from the highs of 2021, but thanks to the depreciation of the ruble by more than two times, ruble yields soared.”

All roads lead to Avito

Miners use various services to sell video cards, including Avito, but every day the sale of accelerators is becoming less and less profitable. According to the interlocutor of the publication, recently the cards on this site have fallen in price three times. The editors of CNews found over 2,600 ads on Avito for the query “rtx 3090”. If you look for a less expensive GeForce RTX 3060 card, then the number of offers exceeds 7600.

It may well be that by mid-July 2022 there will be several times more such announcements.

Remarkably, in almost every ad, the seller indicates that the card did not participate in mining and was used for its intended purpose – it worked in a computer and processed graphics in video games. This is due to the fact that mining significantly reduces the resource of the card – the new owner runs the risk of buying a copy that will break down and require expensive repairs in a couple of days or even a few hours after purchase.

A representative of Avito told the publication that in April 2022, when the bitcoin rate had not yet begun to plummet, sales of video cards on the site fell by 7% year-on-year. It could also be due to the reluctance of Russians to spend money during the economic crisis.

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In May 2022, sales of video cards at Avito fell by 3.5% year-on-year. The representatives of the service did not provide statistics for incomplete June 2022.

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