As many of you know, the boom of cryptocurrency mining worldwide in recent times has triggered the demand in the Chinese market for video cards, hard disks and other elements to set up mining farms. And as no surprise to any of us, China was, until very recently, home to the largest mining farms in the world, with incredible mining power.
You may wonder why we speak in the past tense, and what has happened to make the situation today different from what it was just a few weeks ago. In this article we will tell you about the current circumstances, which are very changeable, and we will also give you some advice regarding prices and purchase forecasts, so that you can make your own speculations, avoid making mistakes and, of course, make better decisions for your company.
It is no secret that this Asian superpower plays a determining role in terms of hardware on a global scale, since they are the main market in the world and the unprecedented demand for these products, generated during the last year and the current one, put manufacturers in trouble, who had to satisfy a huge and expanding niche such as cryptocurrency miners and at the same time not to destock one of the main historical customers of hardware manufacturing companies, the gamer sector.
These are some of the keys that could explain the current situation:
As mentioned above, the inability of production to offer a supply to meet the strong demand has led to a shortage of components.
On the other hand, the Chinese government has begun to apply a series of regulations that seek to restrict activities related to cryptocurrency mining, among other reasons due to concerns about environmental impact and energy costs, which has undoubtedly had an impact on demand and consequently, on prices.
On the other hand, the People’s Bank of China (PBOC) has imposed new restrictions that prevent local banks from offering services that facilitate cryptocurrency transactions.
It is worth mentioning that the technology industry is not exempt from the effects of the Coronavirus, as China is working at half speed.
All this has already caused miners to move from China to other regions, such as North America or Kazakhstan, and as expected the reduction in demand caused the prices of video cards and other components in the Chinese market to begin to fall over the last few weeks.
While this may not be a very favorable scenario for miners in China, others could benefit.
Who?
Miners from other regions could get the necessary hardware for their mining equipment at a lower cost and also with China taking these measures against cryptocurrencies, it will soon be easier and more profitable to mine them.
However, our advice will allow you to plan your next moves with a view to 2022.
Contrary to what some people claim, this is a good time to start searching for suppliers in order to anticipate the launch of new mid-range components, which are pending from the main manufacturers, adapted to the new market conditions.
If this is the first time you are going to import this type of products, pay close attention because this will help you to start:
- Knowing the market.
- Analyze pricing options, qualities and aspects such as graphics solution, cooling system and aesthetic finish of some models.
- The costs of any import operation such as international transportation, insurance, quality inspections, etc..
This way you can plan everything as far in advance as possible and find the model you need at the right price.
You will have to be very attentive to possible stock replenishments, since we cannot know how long the current stocks held by some manufacturers or suppliers will be available.
On the other hand, we have seen some cases where video boards with well-known brands are counterfeited. Aesthetically they are very similar to the high-end originals, but have defects that make it possible to identify whether they are fakes or originals. This situation is solved by carrying out an exhaustive quality control, and fundamentally a pre-shipment inspection, so that the specialists in charge of this task can make sure that all the aspects that you have agreed with the supplier are fulfilled.
It is also important that you carefully analyze the price of a video card before jumping into buying it, even if it may seem to you that they have a really interesting selling price. Be very careful with the “unmissable offers” that you find on the Internet, because in the end, many times, these offers end up being an attempt to take advantage of the current market situation to increase sales.
Importer, if you want to make a purchase of video cards and other elements related to cryptocurrency mining from China, we have very interesting alternatives that can help you find the right suppliers, find the products that you were looking for with so much desire and expectations, get the results that your company needs and solve any question, as far as imports from China are concerned.
If you have any questions, you can leave them in the comments, or contact us and our team of consultants will be happy to help you solve them.
