It seems that the overall downward trend that has proliferated this year in the cryptocurrency space, has a negative impact on the sector.
Due to the fall in the price of the cryptocurrency’s biggest manufacturer of graphics cards and computer chips, Nvidia recently had to withdraw from the production of equipment for mining.
Based on the results of the analysis of the second quarter, Nvidia held, the value of cryptocurrency mining is expected to grow rapidly, minimizing profit. Mining equipment is no longer profitable for the company.
True miners know that this process requires the presence of a powerful graphics card, capable of making the right calculations. For example, mining Bitcoin on your home computer and separate taken man — losing cause. The only way to date to profit from mining BTC is to use a large number of ASIC-s.
In addition, the sharp fall in the prices of cryptocurrencies in 2018. The law of supply and demand, of course, lowered prices on GPUs. There are only a few tokens and cryptocurrencies which miners can mine using the GPU as their computational power is not enough.
According to Nvidia, sales of graphics processors targeted for mining has decreased significantly from $ 289 million in the first quarter to 18 million in the second quarter.
Gensun Juan (Jensen Huang), CEO of Nvidia, says that the manufacture of graphics cards for mining, not only does not bring the expected profit, but also becomes unprofitable.
Nvidia CFO Colette Kress, made an official statement:
“We expect that the cryptocurrency sector will bring us about $ 100 million, but actual revenues from sales of mining-equipment — $ 18 million, and we do not expect any increase of these indicators in the future. We believe that the period of maximum demand on the GPU for mining has already ended, so the future of the company will not be focused on the cryptocurrency market.”