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Bitcoin Patterns Continue To Impact Other Industries Too

 
Bitcoin Patterns Continue To Impact Other Industries Too
Breaking News / Bitcoin

Through this week, the markets have taken a slight downturn and the general feeling towards cryptocurrency is a negative one. Thankfully, this is something many of us can forget about as we all know that the markets will shoot upwards (we hope, at least).

What we have to remember however, is that when the markets fall, or remain stagnant (as they have done this year) other industries suffer too, namely the mining industry. Simply put, the falling value of Bitcoin means that Bitcoin mining is no longer a profitable activity, this is because the amount of Bitcoin you extract from mining does not hold a significant enough value to be worthwhile. Moreover, rising energy costs means that actually, mining isn’t just pointless in some cases, it could actually put miners out of pocket too.

Over the year, companies such as Nvidia have seen a fall in their profits and their shares as a result of tumbling Bitcoin prices. Less people are buying and using their products, so therefore less money is rolling it to Nvidia’s pockets.

According to E&T:

“Nvidia has forecast poor sales for its graphics cards over the holiday quarter which has been partly blamed on declining demand following a weakening of the cryptocurrency boom. Shares in the company plunged 17 per cent after it announced its sales forecast. It pinned the blame on unsold chips piling up with distributors and retailers after the cryptocurrency mining boom evaporated.”

Within their latest forecast, Nvidia expect to make very little money, which in turn obviously worries those investing in the company, as a result of this, shares have fallen 17% and don’t look to be turning round anytime soon either.

Jensen Huang, the CEO of Nvidia has commented:

“Our near-term results reflect excess channel inventory post the crypto-currency boom, which will be corrected. Our market position and growth opportunities are stronger than ever. During the quarter, we launched new platforms to extend our architecture into new growth markets – RAPIDS for machine learning, RTX Server for film rendering, and the T4 Cloud GPU for hyperscale and cloud.”

Furthermore:

“Our introduction of Turing GPUs is a giant leap for computer graphics and AI, bringing the magic of real-time ray tracing to games and the biggest generational performance improvements we have ever delivered.”

As we can see from Huang’s comments, Nvidia are still bullish in the sense that they do believe the cryptocurrency markets will recover and will start to climb again. Once the price of Bitcoin starts to surpass the energy costs associated with Bitcoin mining, then mining will become profitable once again. It seems that Nvidia are preparing for this development and believe they have the technology to really make the most of the next Bitcoin surge, whenever that might be.

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