Cryptocurrency boom is slowing
The cryptocurrency boom finally ends relieving demand on high-end graphics cards. The boom in crypto-mining saw the price of graphics cards skyrocket, as the industry struggled to keep up with demand. Powerful graphics cards and GPUs are highly sought after by crypto-miners due to the overwhelming power that their systems need. Computers are continually processing extremely difficult algorithms in order to process payments leading to need for faster and more powerful cards.
At the height of the boom, the scarcity in the market led to the cost of these graphics cards almost doubling in price. Nvidia GeForce chips, specifically, were almost impossible to buy. This boom was great for companies like Nvidia and AMD but as the bull rush came to an end, and the price of many large cryptocurrencies fell dramatically, these companies were hit financially. Nvidia had originally predicted a $100 million sales in their second fiscal quarter but with the boom ending there, sales reached a more realistic $18 million. Nvidia expects the demand to continue dwindle, however, with a new range of graphics cards hitting the market and the growing demand from gamers they expect to see strong sales.
Mining rigs are being sold off
The fallout of this decline in crypto-mining can be seen on the secondhand, peer-to-peer, marketplaces. Popular websites, such as Gumtree, Craigslist and others have seen a flood of mining rigs up for sale. Many of these rigs are no older than six months old pointing to fact that many newcomers tried and failed to enter the mining market. Now, these systems are being sold off at a great loss in order to offload the unwanted gear. Unfortunately, it seems that the rigs are not only unwanted by the sellers but by the buyers too, as the rigs are struggling to shift.
Many, however, expect that this fall in demand will not continue and are gearing up for the next digital gold rush. Many companies coming into the market are looking specifically to cater to the needs of crypto miners. A Chinese company, Bitmain, who have silently become a global power in the industry provide their own chipset. With their specifically designed chipset, they are almost a must have in the crypto-mining industry. Bitmain almost rivals Nvidia’s dominance in the market. However, China’s government crackdown on cryptocurrency may stifle the company’s growth. And with British start-ups like Graphcore, and ASIC creating artificial intelligence chipset the competition for mining is heating up. If and when the next gold rush arrives, Nvidia may have new found competition on their hands.
Now is a good time to buy a graphics card
This current lull in demand is great news for gamers and aspiring miners alike. With the price for GPUs and graphics cards coming down to a more affordable rate, it’s a great time to purchase. As a gamer, if you have been waiting to purchase that brand new 1080 ti now is the time to do so. If you are looking to get into mining yourself take heed of the mining rigs flooding the peer-to-peer market. It may be a good time to get yourself a powerful rig but it’s probably not the best time to get in crypto-mining.