Miners of Bitcoin and other cryptocurrencies are turning their backs on Nvidia’s expensive high-end GPUs.
(CCM) — The value of graphics chip-maker Nvidia plummeted by nearly 20% following the revelation that the collapsing price of cryptocurrencies such as Bitcoin had hit its sales hard, according to an Investopedia report . The company has projected sales of $100 million for cryptocurrency-specific products in the second quarter of the year, but in the event it made sales of just $18 million.
Nvidia was one of the biggest beneficiaries of the cryptocurrency boom which topped out a little under a year ago, as people bought Nvidia graphics cards in their droves to build "mining rigs" which they hoped would enable them to generate Bitcoin and other currencies.
But after the price collapse which started in January 2018, fewer people wanted to get involved with mining. Those that were serious about generating cryptocurrencies also moved away from mining rigs powered by Nvidia graphics cards and towards purpose-built computer systems powered by application specific integrated circuits (ASICs): specialized chips built specifically to carry out the mathematical problem solving that cryptocurrency mining involves. As a result, Nvidia has been left with a large quantity of unsold stock.
This state of affairs is good news for traditional PC gamers, because the cryptocurrency boom led to a shortage of supply of the high-end Nvidia graphics cards they favor. This in turn led to sharp price increases.
Image: © Nvidia.