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Crypto Miners Hated by VR Players as Graphic Cards Sold Out in China

As reported by SINA VR, some VR players find themselves in an awkward situation recently: they have carefully selected all components of their first VR-ready PC but stuck on the GPU part. Almost all high-end GPU are nowhere to be found, even JD, the biggest online 3C shopping site in China, is out of stock. The reason is simple. VR players couldn’t afford the price offered by cryptocurrency miners, who are well funded by the soaring cryptos that are built specifically for GPU mining.811f725bly1fgt05kd2iqj20qo0zk7c7

People assembling graphic cards in a miner. (credit:Sina VR)

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6 graphic cards in a miner. (credit:Sina VR)

 

Supply of graphics card has been tight since the beginning of this year but the situation is getting worse in June. Both online and offline stores across China are reported in shortage of graphic card. Price of some highly-demanded GPUs have doubled this year, which has never happened before. It’s said that the GPU wholesalers were hoarding units for higher profits.

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Graphic cards are “out of stock” on JD, the biggest online 3C shopping site in China. 

Searching on weibo, one can find that VR players are complaining the situation and hoping for a price crash of cryptos.

 

20170630105544
Jerry:

I gave up. Can’t buy a good graphic card at a proper price across the world…..When will the mining crash? My computer is almost out of service and GPU price rise by over one thousand yuan.

20170630105706

Jiulangya:

Wait. So the shortage of graphic card is caused by the rise of Bitcoin???? WTF!

20170630105631

Wudimiao:

Memory stick rise after SSD rise. Now it’s turn for graphic card. Oh, that’s not true because there is none available.

VR players blame the Bitcoin miners as they are unaware of the difference between GPU miners and Bitcoin ASIC miners.

The most popular GPUs are AMD RX 480/580, NVDIA GTX 1060 as they are the best cost effective option for hashrate generators. AMD RX 580 is built with FinFET 14bm process technology, which makes it less demanding for power and cooling. The price of RX 580 has been pushed from around 2,000 CNY in April to 3,499 in late June, according to Sina VR.

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Price chart of RX 580 8G graphic card (from April to June, source: Sina VR)

A proper mining farm will require over 10,000 graphics card according to Li Ang, operator of Bitcoin mining pool :Canoe pool.
As a seasoned miner since 2013, Li Ang told 8btc:

“We built a small GPU mining farm at the end of last year and never bought any new graphic cards ever since. But we are aware that there have been increasing demand for GPU along with the rise of cryptos. The shortage of GPU is definitely driven by crypto miners, that’s for sure. “

The ROI of mining some cryptos is 2 month in its best time, not the mention the residual value of sales from second-hand graphic card.

He said that a big GPU mining farm could host 20,000 miners, each of which carries 5 to 6 pieces of graphic card. That means a mining farm of this size could consume 100,000 to 120,000 graphic cards alone. He also revealed that several  mining farm of similar size are under construction in Yunnan province.

Speaking of second-hand graphic card, he also expressed his concern for the re-occurrence of 2014 crash.

“Lots of mining farm shut down from 2014 to 2015 simply because the business was not profitable. The second-hand GPUs were renovated and then sold to the open market. Some people bought them, only to find they were function-less after a short while.”

Recently NVIDIA release a “trimmed” version of graphic card, which has not video output interface.

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Li Ang estimated that the shortage of graphic card would ease by the end of 2017.

The shortage of graphics card in China signals a bubble in the cryptocurrency market. A bubble could not last long.

COMMENTS(68)

  • BitcoinAllBot
    2 months ago BitcoinAllBot

    Here is the link to the original comment thread. Or you can comment here to start a discussion. Author: 8btccom

  • BlondFaith
    2 months ago BlondFaith

    Hey maybe this isn’t the right place but if you are a miner, can you confirm your own transaction?

  • MagFreakingNeto
    2 months ago MagFreakingNeto

    https://imgur.com/EXjGFT2

  • homopit
    2 months ago homopit

    Yes, of course. But these days mining is done on mining pools. The pool selects transactions for new block, miners only contribute hash power to mine that new block. For this, they are sometimes called ‘hashers’, not miners.

  • MarketGiraffe
    2 months ago MarketGiraffe

    Vr “players”. To be fair if i ever saw vr pron i couldnt go back to regular life either

  • LovelyDay
    2 months ago LovelyDay

    Yeah, this is unfortunate.

    I want VR and cryptocurrency to succeed. But the latter is much more important imo. The supply will get back on its feet, with manufacturers producing cards tailored to mining already.

  • Mr_Yukon_C
    2 months ago Mr_Yukon_C

    lol — can confirm — I just ordered 7 more GTX 1080’s. 🙂

    Not mining ETH either, mining Zcash and dumping it for ERC20 tokens. 🙂

  • autotldr
    2 months ago autotldr

    This is the best tl;dr I could make, original reduced by 82%. (I’m a bot)

    VR players couldn’t afford the price offered by cryptocurrency miners, who are well funded by the soaring cryptos that are built specifically for GPU mining.

    VR players blame the Bitcoin miners as they are unaware of the difference between GPU miners and Bitcoin ASIC miners.

    As a seasoned miner since 2013, Li Ang told 8btc:. “We built a small GPU mining farm at the end of last year and never bought any new graphic cards ever since. But we are aware that there have been increasing demand for GPU along with the rise of cryptos. The shortage of GPU is definitely driven by crypto miners, that’s for sure.”

    Extended Summary | FAQ | Feedback | Top keywords: miner#1graphic#2card#3GPU#4price#5

  • kixunil
    2 months ago kixunil

    They should help Bitcoin defeat shitcoins to get the prices back. 🙂

  • SectorRatioGeneral
    2 months ago SectorRatioGeneral

    As a Chinese investor yep that’s pretty much what I’ve heard too, not just apply to VR players though don’t know where do they get that from, more like gamers in general.

    Some of the miners here are really dicks from what I’ve read. Some don’t even buy cards from retails/shopping websites anymore, they fucking drive a truck directly to the factories producing them, blocking their entrance gate and aggressively demand for thousands. Another handful took advantage of the “7 days refund” policy provided by online store such as JD.com, buy some high-end ones mine them for 6 days straight for no money and then return the used product. It takes more than “sold out” to spawn such an outrage to say the least.

  • Tajaba
    2 months ago Tajaba

    We’re in bubble territory now

  • GeneralSchittlord
    2 months ago GeneralSchittlord

    hilarious! VR is dumb, and so are the idiots that enjoy VR. i hope they never get any GPUs

  • Mr_Yukon_C
    2 months ago Mr_Yukon_C

    Another handful took advantage of the “7 days refund” policy provided by online store such as JD.com, buy some high-end ones mine them for 6 days straight for no money and then return the used product.

    Wow. That is really terrible behavior. Very dishonest. 🙁

  • KeepinItRealGuy
    2 months ago KeepinItRealGuy

    It’s not all bad though. I just sold a 6 month old 1070 for about $120 more than I bought it for.

  • GoldPantsPete
    2 months ago GoldPantsPete

    There’s also a general memory shortage at the moment for a variety of factors which probably isn’t helping things.

  • BowlofFrostedFlakes
    2 months ago BowlofFrostedFlakes

    Yes, and to add to that, in a few months when the difficulty rises enough, VR players will be able to buy the used high end GPUs that were used for mining.

    They will probably be able to get them at a much cheaper price since the miners eventually will need to liquidate everything. I would replace the fans on them though as they would have significant wear on them.

  • evilgrinz
    2 months ago evilgrinz

    Profitabilty is dropping fast, way too many people jumping in each day. I don’t see it slowing down for awhile though, the gpu makers love it also.

  • BitcoinMadeMeDoIt
    2 months ago BitcoinMadeMeDoIt

    The come down is imminent (not permanent) but it’s like everyone has stars in their eyes.

  • triffid_boy
    2 months ago triffid_boy

    VR’s great! It’s easily the best tech in gaming, and it’s helping with psychological problems like PTSD. Why’s it dumb?

  • Tajaba
    2 months ago Tajaba

    you haven’t seen the PRON man!

  • Tajaba
    2 months ago Tajaba

    Explosion imminent! prepare to short!

  • Vaeox_Ult
    2 months ago Vaeox_Ult

    Are you making a decent profit?

  • duckordian
    2 months ago duckordian

    How about a thank you for the upcoming increase in performance and efficiency of cards being release?

  • varikonniemi
    2 months ago varikonniemi

    GPU coins are. Bitcoin is not affected by this.

  • stupidx
    2 months ago stupidx

    This has nothing to do with bitcoin since it’s not mined by GPU’s. Move this to shitcoin sub.

  • dimadimaivchenko
    2 months ago dimadimaivchenko

    good time to start doing more graphic cards
    and ear more money

  • Mr_Yukon_C
    2 months ago Mr_Yukon_C

    Yes. 🙂

  • thatshitsfunny247
    2 months ago thatshitsfunny247

    Don’t mention Ethereum in /r/pcmasterrace they will crucify you as the fucking devil.

  • redbullatwork
    2 months ago redbullatwork

    pcmr is mainly spoiled tweeners.

  • dhewa_maru
    2 months ago dhewa_maru

    Throw us a bone (numbers)

  • BitcoinMadeMeDoIt
    2 months ago BitcoinMadeMeDoIt

    The come down is imminent (not permanent) but it’s like everyone has stars in their eyes.

    Edit: feel free to downvote lol, it won’t change the outcome, the crashes are not a bad thing anyways, who doesn’t like a flash sale? And as we all know, the price rarely if ever goes lower than the previous ath.

  • Tajaba
    2 months ago Tajaba

    Yup, actually right now its almost not worth the price of electricity anymore lol the ASICs are doing ok though (for now, until Bitmain pumps them out like toasters)

  • evilgrinz
    2 months ago evilgrinz

    If you mine BTC, its beyond pointless, its like trading $2 for $1. If you mine alts its still very profitable, and they are Asic proof. However, more people mining each day means share of pay goes down and down.

  • Crye
    2 months ago Crye

    You can check out whattomine.com they are probably pocketing around $20 to $30 a day.

  • BlondFaith
    2 months ago BlondFaith

    But say you directed your rig to do it seperately from the pools. Would it then make microtransactions more feasable as you yourself would get the fee?

  • homopit
    2 months ago homopit

    No, not with a rig. You will need to have a substantial hashrate. Bitcoin mining network has 4,880,241 TH/s. To find a block in reasonable time, say 1 block in 3 days on average, you would need to have 0.3% of that hashrate, or about 15,000TH/s. That’s about 1100 mining rigs that cost $1100 each, or $1,200,000 total.

    If you can invest that amount (+infrastructure and running costs), you can try to mine separately.

    And when you are running a business like this, you would find out that it is more profitable for you to include transactions that pay more in fees.

  • DesaKnight
    2 months ago DesaKnight

    That’s sounds pretty bad though.

  • KeepinItRealGuy
    2 months ago KeepinItRealGuy

    Not for me or anyone else who bought a GPU for gaming. Upgraded to a 1080 ti for $300. That’s a smoking deal.

  • BlondFaith
    2 months ago BlondFaith

    Right, so the miner fee is split among all the rigs involved. Thanks.

  • demonicsmileyface
    2 months ago demonicsmileyface

    I tried mining zcash on my 1080ti and the sol hashrate I got said I would make $10 per year

  • demonicsmileyface
    2 months ago demonicsmileyface

    Yeah people on r/ethermining were bragging about how they would take advantage of the 3 month refund time on their card and were up voted for it. I miss when that sub was better like a year ago and not full of overconfident retards and braindead people asking how to mine ETH with ASICs.

  • demonicsmileyface
    2 months ago demonicsmileyface

    Lol yeah I bought 2 rx 480’s lile 6 months ago for $200 each mined like 15 ETH from them in that time, and just sold them both for $380 and bought myself a 1080ti for &$690

  • Mr_Yukon_C
    2 months ago Mr_Yukon_C

    You’re doing something wrong then.

    That card is a beast and will chew through Equihash like no tomorrow.

    I suspect it was either a driver issue or a miner software issue.

    The 3 GTX 1080’s that I currently have running are averaging 500+ Sol/s out of the box untweaked.

  • Mr_Yukon_C
    2 months ago Mr_Yukon_C

    I miss when that sub was better like a year ago and not full of overconfident retards and braindead people asking how to mine ETH with ASICs.

    lol Pretty much everything has gone to hell. 🙂

  • hl5460
    2 months ago hl5460

    As reported by SINA VR, some VR players find themselves in an awkward situation recently: they have carefully selected all components of their first VR-ready PC but stuck on the GPU part. Almost all high-end GPU are nowhere to be found, even JD, the biggest online 3C shopping site in China, is out of stock. The reason is simple. VR players couldn’t afford the price offered by cryptocurrency miners, who are well funded by the soaring cryptos that are built specifically for GPU mining.http://news.8btc.com/crypto-miners-hated-by-vr-players-as-graphic-cards-sold-out-in-china

  • PilgramDouglas
    2 months ago PilgramDouglas

    I just wanted to put together a new desktop PC with new gear, now there is no reason to upgrade GPU since it is cost prohibitive; have to use my old nVidia 960 instead of upgrading to a R580

  • HHH___
    2 months ago HHH___

    How long is that sustainable for?

  • mrtest001
    2 months ago mrtest001

    I thought only a handful of cards were efficient enough.

  • Tajaba
    2 months ago Tajaba

    I’ve been in this a while man, thats still what I meant though. If the price of BTC is not +2700 (which takes the whole market up with it) and with exponentially increasing difficulty (like right now) You’d make money back in maybe 2 years

  • WikiTextBot
    2 months ago WikiTextBot

    Eternal September

    Eternal September or the September that never ended is Usenet slang for a period beginning in September 1993, the month that Internet service provider America Online began offering Usenet access to its many users, overwhelming the existing culture for online forums. The influx in Usenet users was also indirectly caused by the aggressive direct mailing campaign by AOL Chief Marketing Officer Jan Brandt in order to beat out CompuServe and Prodigy, which most notably involved distributing millions of floppy disks and CD-ROMs with free trials of AOL.

    Before then, Usenet was largely restricted to colleges and universities. Every September, a large number of incoming freshmen would acquire access to Usenet for the first time, taking time to become accustomed to Usenet’s standards of conduct and “netiquette”. After a month or so, these new users would either learn to comply with the networks’ social norms or tire of using the service.

    [PM |Excludeme |Excludefromsubreddit |FAQ/Information |Source ]Downvotetoremove|v0.24

  • Kingdud
    2 months ago Kingdud

    There’s a part of me that wishes I knew how to make ASICs. I would LOVE to build algo-specific ASICs for GPU-bound algorithms. Why?

    I would learn a new and super-useful skill (lots of things besides bitcoin need ASICs, it’s one more career field I open to myself)
    It gets me closer to the hardware (I have a Computer Science degree because I want to marry hardware and software, my hardware knowledge is decent, but could definately be better)
    I’d love few things more than to see Bitmain’s monopoly broken
    Mentally, I like optimization and efficiency improvements. If I knew of some task in bitcoin’s client that was slow and needed speeding up (er, one that could be sped up safely) I would totally look into doing it.

    It’s a mixture of the bar for entry appearing too far away (I don’t know too many things to start learning on my own efficiently) and a lack of motivation that stops me. I like doing engineering work, I hate the idea of running a company.

  • b3rn13mac
    2 months ago b3rn13mac

    yes RAM prices are floating about 200% of what they were last summer

  • cavkie
    2 months ago cavkie

    Are you mining again? Make the video!

  • Mr_Yukon_C
    2 months ago Mr_Yukon_C

    Are you mining again?

    Yes, but I’m only running about 1/5 the number of cards (~10) this time.

    Mainly because:

    the cards about 2x – 3x more powerful, but use the same or less amount of electricity
    the cards are also about 2x – 3x as expensive right now because of the boom
    I have less room in the house this time for rigs, since we’ve rearranged some things and expanded the home gym

    So basically, it’s just a much smaller effort this go around. Probably not worth a video. 🙂

  • cavkie
    2 months ago cavkie

    Wouldn’t it have more sense just to buy alts you want?

  • Mr_Yukon_C
    2 months ago Mr_Yukon_C

    Possibly.

    But the thing with mining hardware is that once it’s paid for, then it just keeps paying you.

    It’s like a rental property — same exact concept.

  • mcbowler78
    2 months ago mcbowler78

    The real threat isn’t from the gov but mad gamers who will band together to take alts down one by one.

  • 8btccom
    2 months ago 8btccom

    How could gamers take down alts?

  • mcbowler78
    2 months ago mcbowler78

    51% attack

  • mcbowler78
    2 months ago mcbowler78

    And I am joking btw

  • GetHimABodyBagYeahhh
    2 months ago GetHimABodyBagYeahhh

    “A big mining farm could host 20000 miners… A mining farm of this size could consume 100,000 to 120,000 graphic cards.”

    That’s a lot of hash power. A single RX 480 benchmarks at 835 H/s… A farm of they’re describing would generate 100 MH/s or basically the equivalent of today’s entire monero network.

  • smileymalaise
    2 months ago smileymalaise

    how often does it need to consume that many graphics cards? seems like feeding the beast will get expensive real quick.

  • physalisx
    2 months ago physalisx

    Concentrated nerd-rage is a deadly weapon

  • physalisx
    2 months ago physalisx

    The annual ritual of GPU sacrifice is a tradtition deeply inbedded in the mining cult. Its followers have been practicing it since their prophet founded the cult in 2009. The sacrifce is believed to calm the mining gods so they will be mild on difficulty increases and give great rewards in the coming year.

    Source

  • afighttilldeath
    2 months ago afighttilldeath

    Indeed, as long as it doesn’t involve getting off the couch 🙂

  • IntellectualEuphoria
    2 months ago IntellectualEuphoria

    Good. Hopefully these gamers can find a more productive “hobby” now.

  • Crye
    2 months ago Crye

    No one really knows. The markets seem to think it’s just a fad.

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