Nvidia suspends production of crypto-mining equipment
It seems that the general downward trend that has spread this year on the crypto-market negatively impacts the sector. Due to lower prices, the largest manufacturer of graphics cards and computer chips Nvidia recently had to abandon its manufacturing of cryptocurrency mining equipment.
Crypto-mining becomes too expensive
Based on the graphics card producer's second-quarter results, the cost of crypto-mining activity would skyrocket, minimizing profit margins. Nvidia would no longer earn profits from its mining equipment.
Regulars crypto-mining know that the process requires to have powerful graphics cards, able to make the right calculations. If at first, the processor is powerful enough to undermine a virtual currency, the use of GPUs becomes necessary as the cryptocurrency matures.
In the long run, multi-GPU crypto-mining platforms for digital tokens are not enough . For Bitcoin, for example, mining by an individual's computer has not been profitable for a long time . The only way to fix this is to use a large number of ASICs (an integrated circuit dedicated to a specific application).
Soaring cryptocurrency prices from 2017 to early 2018 have attracted quite a few new mining enthusiasts. The law of supply and demand has naturally lowered the price of GPUs.
In addition, revenue from sales of "Cryptocurrency-specific GPUs" dropped significantly from $ 289 million in the first quarter to $ 18 million in the second quarter, according to Nvidia.A negative sentiment vis-à-vis cryptocurrencies
Jensen Huang, the CEO of Nvidia, says that the profitability of cryptocurrency mining chips was falling while the price of Bitcoin and altcoins suffered an impressive fall."At the beginning of the year, we thought and projected that crypto-currencies would be a greater contribution until the end of the year ... But for the moment we consider that they bring nothing more this second semester, "he announced in response to Colette Kress, the financial director of Nvidia.Kress said in a statement saying:
"We think we have reached a normal period. We had anticipated virtual currency-specific products at around $ 100 million, while actual cryptocurrency revenues were $ 18 million, and we expect a similarly small contribution in the future. "What do you think of the collapse of GPU sales related to crypto-mining? Tell us in the comments section below.
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