Nvidia Admits Defeat And Drops Out Of Cryptocurrency Mining Manufacturing
Nvidia are one of the worldâs largest producers of graphics card and computer chip hardware. Initially established to build products for gaming and video, Nvidia are one of the few companies who have found a demand for their products within the cryptocurrency mining community. As a result of this, like others, Nvidia had capitalised on this, producing cryptocurrency mining products that could be purchased on a personal and an industrial scale.
Now however, it seems the falling price of Bitcoin has taken its next victim. Because Bitcoin is down and because the cost of mining is up, profits are low. In essence, Nvidia arenât making any money off their mining products, because nobody is buying them anymore because as we know, mining is essentially becoming obsolete.
According to Coininsider, Chief FInancial Officer at Nvidia, Colette Kress has said:
âWe believe weâve reached a normal period as weâre looking forward to essentially no cryptocurrency as we move forward. Our revenue outlook had anticipated cryptocurrency-specific products declining to approximately $100 million, while actual crypto-specific product revenue was $18 million, and we now expect a negligible contribution going forward.â
Furthermore, the CEO of Nvidia Jensen Huang has added:
âIn the beginning of the year, we thought and we projected that crypto would be a larger contribution through the rest of yearâ¦ But, at this time, we consider it to be immaterial for the second half.â
See more for yourself, here.
This isnât the first case of a mining operation closing of recent months, indeed we have seen a large amount of cloud-mining operations close or reduce their customer base as a result of falling profits, the difference here though is that when profitability shoots back up, cloud-mining companies will be able to boost their customer base once again. I fear with Nvidia though, they may fall behind on the technology over time and could be at risk of losing out, if and when cryptocurrency mining becomes more profitable again.
Is this something Nvidia might regret in the long run?
Who knows. Mining obviously didnât suit their future plans and obviously hasnât proved to be a reliable venture, perhaps they will use their resources to tap into other forms of blockchain technology, or, maybe they will find themselves focusing harder on the gaming technology, whilst in the meantime their rivals fraction off and continue to explore mining and blockchain. In this instance, maybe Nvidia will eventually take total control of the gaming market, who knows.