Crypto crash leads to firesale of hardware

economictimes.indiatimes.com:

crypto currencies world-wide is having a ripple effect on the prices of hardware that supported the complex mining process of these digital assets. Gone are the days when crypto currency miners and the hardware makers raked in the moolah amid the recent boom in digital assets. In the wake of the crash in crypto prices, mining such digital assets has become unviable, resulting in miners dumping their high-end equipment in the resale market that has resulted in a crash in prices. Sample this: Until a few months ago, if you needed a high-end graphic card, used to mine new bitcoins, it would have cost as much as ₹2 lakh in the black market. Now, users can buy the same cards online at their sticker price of around ₹1.1 lakh per unit. That's a drop of 45%.

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The slump in price of graphics cards has been driven by dumping of these high-end pieces of hardware in the resale market by the crypto community. «Every week prices are falling,» said Vibhor Agarwal, chief executive at Supertron, one of the largest distributors of computer hardware in India. «The price correction which was much awaited has started happening.» Cryptocurrency mining requires users to solve a complex set of problems on the computers post which they unlock or mint new cryptocurrencies, like bitcoins. These complex algorithms require high computing power to solve and miners usually use graphics cards designed for intensive gaming for this job. As prices crashed, mining of cryptocurrencies has become unviable since the process itself is very expensive. The sell-off in major cryptocurrencies