Nvidia Says GPU Sales for Crypto Mining Have Dried Up
Nvidia Says GPU Sales for Crypto Mining Take Stale Up
If y'all had tried to buy a new video card a year ago, yous would take been in for a very, very bad fourth dimension. The explosion of interest in cryptocurrency pushed prices sky-high, leaving almost no cards for people who but wanted to play some games. Prices take mostly returned to normal in the last few months, and now Nvidia has confirmed what nosotros all suspected in its recent earnings telephone call. GPU sales for cryptocurrency mining are dropping like a stone.
The process of mining cryptocurrency involves running increasingly complicated calculations to generate new coins. This process besides serves to process transactions and update the blockchain, a sort of master leger for a currency. In the early days of a currency, a CPU is powerful enough to churn out virtual coins, simply GPUs
go necessary equally a currency matures. Eventually, even multi-GPU mining rigs are bereft. In the case of Bitcoin, mining on personal hardware become unprofitable ages agone. Now, the merely way to turn a turn a profit on Bitcoin is with large numbers of ASIC (application specific integrated circuit) systems.
The price blast of 2022 through early 2022 brought a lot of new miners into the marketplace, and they all needed hardware to generate new coins. Thus, the law of supply and need took over to wreck GPU prices. You were lucky to run into cards selling for less than double MSRP. Now, Nvidia says acquirement from selling to crypto miners has dropped substantially to merely $18 million. In the kickoff quarter of the year, Nvidia reported $289 million in revenue from "crypto-specific GPUs."
"Look at these amazing prices," said no one, always.
The company doesn't foresee another major uptick in mining, either. It projects sales to cryptocurrency miners will remain "negligible" going forward. Nvidia has adjusted its plans to compensate for that, too. It expected crypto would remain a big part of its sales before the bottom dropped out of the market. Information technology had projected nearly $100 million in crypto-related revenue for the quarter.
Nvidia CEO Jensen Huang noted during the Nvidia earnings call that it first spotted the uptick in GPU sales in the third quarter of 2022. That'southward when Bitcoin prices were solidly over $x,000, dragging newer cryptocurrencies along with it. Bitcoin peaked at over $20,000 before dropping dorsum downward — it's currently worth a little over $half dozen,000.
If yous're non looking to mine some fancy new virtual coin, this is good news. GPU prices are likely to stick at or below MSRP for gamers.
Now read: Rumored ASIC Cryptocurrency Miners Could Exist Welcome Relief for the GPU Market, Dell'southward Latest AMD Inspiron Laptops Are Bedridden Compared With Intel Versions, and Cryptocurrency Miners Bought $776M in GPUs in 2022, More often than not From AMD
Source: https://www.extremetech.com/computing/275728-nvidia-says-gpu-sales-for-crypto-mining-have-dried-up
Posted by: levinethaverce.blogspot.com
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