Drop In Cryptocurrency GPU Sales Expected. Graphics cards are vital in the cryptocurrency mining process. As a graphics card works, equations needed for producing blocks on a blockchain and generating currency tokens can be resolved. Cards are often paired with each other to produce the effort needed for mining currencies. This in turn creates a better approach for producing currencies. But at the moment, there is a concern that such GPUs are not going to be as popular as they have been in recent time.
Nvidia, the maker of many GPUs, announced that it had a rise in its revenues from the past year. Revenues and profits went up by about 10 percent each. Much of this is thanks to the increased demand for graphics cards for mining intentions.
Nvidia specifically said that the company made $289 million in cryptocurrency mining-related sales during the first quarter of the year. The company expects that people are buying these cards mainly with gaming purposes in mind, but they are also using them for currency mining functions. This includes work for mining currencies while one is asleep or outside of the house among other things.Advertisement
However, a decline in the sale of GPUs is expected. Nvidia states that it expects the currency-related sales of its graphics cards to be about a third of what it had originally been.
AMD, a competitor to Nvidia, also stated that it is expecting currency-related graphics card purchases to be worth less than 10 percent of the value of the total sales that the company gets. There is also expected to be not much of a change in how people are going to buy graphics cards as they will not be likely to switch from one to another over time regardless of the values of the currencies being mined.
The companies are also expressing concerns that when people are unable to get currencies off of their cards, they might try to sell off those cards on the market. This would cause the used market to become larger, thus making it harder for Nvidia and AMD to produce and sell new cards and to make a profit of them.
The concern surrounding a potential decline in GPU sales is significant as it suggests that the people who want to enter into the mining field might have done so already. The lack of expected sales suggests that the market will stay the same size for a period of time and will not be overly profitable. Therefore, there is a chance that currencies might not grow in value by as much as what people could have expected.
On a related note, neither company said anything at the moment about any new cards that are going to come out. Details on the prices of cards have not been released either. These points could influence the currency market as they might entail people switching their own cards out to get newer ones that might be more efficient. This may still result in the used market becoming larger, thus cutting away from some of the profits the companies are earning.