Ethereum miners alone have reportedly spent about $15 billion on graphics cards over the past 18 months. This figure doesn’t include GPUs used for both gaming and mining by gamers trying to recoup some of the cost of their rigs.
According to a new report, Ethereum miners have spent approximately $15 billion on GPUs over the past 1.5 years. That number doesn’t include the cost of CPUs, motherboards, PSUs, and other components necessary for a mining rig. The data comes from Bitpro Consulting, a company that specializes in purchasing and refurbishing crypto mining hardware.
In late 2020, many cryptocurrencies saw a drastic price increase, leading to millions of people buying graphics cards at retail to mine Ethereum with the goal of making a quick buck. At the same time, AMD and Nvidia launched their new generation of GPUs, which featured a massive performance improvement compared to their predecessors, making many gamers want to upgrade.
Demand far exceeded supply and sent prices skyrocketing, with hardware scalpers only exacerbating the issue. According to Jon Peddie Research, the average selling price of add-in graphics cards jumped from just over $400 in 2019 to almost $800 last year.
People who got into mining early on made hefty profits off their investments. However, Ethereum has dropped in value by over 80 percent since its peak last year, leaving many struggling to recoup costs. Bloomberg reports of a man who has so far earned only $5,000 worth of crypto from his $30,000 hardware investment.
After Ethereum switches to a proof-of-stake model, GPU miners will no longer be able to mine the cryptocurrency. Developers claim the move will happen in August, although it might get delayed once more.