China Bitcoin Crackdown Leads To BTC Price Plummet and also Cheaper Graphics Cards

With graphics cards seeming harder to get than ever, China’s stricter measures against Bitcoin mining have led to lower prices online in the country.

In Yunnan, the country’s fourth-largest Bitcoin-producing province, authorities have been investigating illegal electrical power use tied to Bitcoin mining and are threatening to cut power to those involved in the practice. As SCMP reports, it’s the latest province to join the country’s clampdown on crypto.

In 2020, China made up 65 percent of Bitcoin’s global hash rate.

SCMP now reports that stricter measures towards Bitcoin are driving down the prices of graphics cards in China. Graphics cards aren’t only used for gaming, but for Bitcoin and other cryptocurrencies as they provide the extra computer power needed in the computations necessary to mine digital currencies.

As the Chinese government has been putting the squeeze on crypto, Sichuan province remained a holdout for mining operations. But, as SCMP adds, Sichuan has called for all mining to cease, dashing the hopes of miners to take advantage of the province’s hydropower. Now, miners are apparently looking at moving operations outside China to friendlier areas.

All of this has caused the prices of graphics cards to drop online in China. In May, the Asus RTX 3060 was commanding as much as 13,499 yuan ($2,085), but SCMP reports that prices have dropped to 4,699 yuan ($725).

That’s not the only thing to drop. According to CNN, the value of Bitcoin has dropped in the wake of China’s measures.

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Source: Bitcoin Crackdown Leads To Cheaper Graphics Cards In China

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