Nvidia sales got to enjoy to the incredible rise of cryptocurrencies. This was not good news for everyone since many people who wanted to buy a new video card, were in for a nasty surprise. With the global explosion of crypto, GPU prices were pushed sky-high and this left the people who simply wanted to play video games with almost no affordable choices.
With the prices now returning to normal, the recent CFO confirmed what many people were suspecting for a while: Nvidia sales for cryptocurrency mining have hit rock bottom. The increasingly complicated calculations required to mine new coins take a heavy toll on the graphics card. In the earliest days of crypto, it was possible to mine with a CPU, but eventually GPU’s were absolutely necessary if the miner wanted any form of profit. If we look at Bitcoin, we can quickly see that it became absolutely impossible to mine with personal hardware years ago. This is also true for multi-GPU mining rigs or farms.
Nvidia sales need to change their strategy to match the current markets
It’s normal that an incredible rise in price such as the one seen last year would attract many new miners to the booming market. Everyone wanted a piece of the pie, but they required hardware to generate sufficient profit. The market’s law of supply and demand quickly turned up and people who wanted to buy video cards for games were in an unfavorable position. To put things into perspective Nvidia sales in the first quarter of 2018 were nearly $290 million from selling GPU’s to crypto miners. Now, this amount has dropped to a little over $18 million.
This has quickly set Nvidia on the path to once again prioritize products for gamers over miners. This would mean that the prices will land back into the affordable range for most gamers. As for miners, the time for mining with personal GPU-rigs and CPU’s is long gone. If you wish to mine nowadays, you will require a Data Center with special equipment and subsidized cheap electricity. As for the future, it’s very hard to say how crypto mining will look 10 years from now, but it will be an exciting concept for sure.
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