Reports Indicates That GPU Sales Normalize As Crypto-Mining Gold Rush Ends

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As cryptocurrencies prices are on a decline, the mining seems to be at a halt as well. Mining is an expensive process and if the returns aren’t as great as investments, the investor directs their money somewhere else. A marginal drop in the sales of GPU has been observed and one of the reasons for it could be current mining slow-down.

According to the report by Jon Peddie Research (PDR) the market has “shaken off the gold rush fever of crypto-mining,” which shall push back the GPU sales and shipments back to normal levels. The report adds that JPR anticipates no further impact of cryptocurrency mining upon the sales of graphics cards, and the GPU market at large.

“Our revenue outlook had anticipated cryptocurrency-specific products declining to approximately $100 million, while actual crypto-specific product revenue was $18 million. Whereas we had previously anticipated cryptocurrency to be meaningful for the year, we are now projecting no contributions going forward.”

For much of the past year, a shortage of graphics cards was observed and concurrently the price tags inflate. While it was not solely because of cryptocurrency mining, it was a massive parameter.

However, the current bear market has affected mining profits as well. Bitcoin and other cryptocurrencies peaked earlier this year and have been plummeting since then, notably many alt-coins have lost 90 percent of their value. Though Bitcoin is still higher than it was in August 2017, it is currently down by 68 percent from its peak.

Obviously, mining is not as profitable currently. According to JPR, overall GPU shipments dropped 1.5 in the second quarter of 2018, with AMD and Nvidia observing 12.3 percent and 7 percent declines, respectively.

Everything couldn’t be scratched up to Cryptocurrency, though. There is a possibility that potential buyers are hanging out for Nvidia’s GeForce refresh, both to see what the new GeForce RTX cards will bring to the table and for the inevitable price cuts of Pascal parts.

Now that the cryptocurrency mining craze is seeing a lull and new cards have been announced, it will be interesting to see what shipments look like in the third and especially fourth quarters.

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