Topic: Crypto chip sales plummet (Read 549 times)

Well, i think that it maybe caused by smart phones being better in an ecosystem than laptops. I mean i see more and more people opting to switch from laptops and desktops to just tablets for better battery life and simpler functionality. I see less and less hardcore gamers these days that would beed high end chipsets which are totally irrelevant to crypto currency sales.

I think it will start to go up again soon. The reason for this is that the more miners are shutting down their systems means the less difficulty we will have. The only people who currently mine are the people who are willing to work at negative right now for future profit potential (which can be done by just shutting down the miners and buying the coin itself instead of paying electricity).

However, when the difficulty goes low enough there will be a potential to mine again and profit from it. Hence, we are going down right now and we need to wait a bit more but when the difficulty reaches to a point that its profitable again we will see chip sales going up again.

Ok. So the sales of silicone computer chips are down, I don't think this will affect the crypto currency prices at all. I mean if the stock market supposedly doesn't affect crypto currency then why would the sales of one of the major computer companies affecr crypto currency at all? Then again, I don't know how all this works.

Sales do not plummet right now it is just not as big as companies predicted because after last year when so much people wanted to get it the companies tough the demand would continue to increase. When they made lets say 100 of something and sold all 100 they decided to make 150 of it and sold all of it and than 200 of it and sold so they thought they could increase the capacity as much as they can and will probably sell all.

However the market fell and the prices plummeted so instead of selling 500 right now they are selling 200, still more than they used to sell but much less than what they expected. Numbers are made up of course I don't know exact numbers but in general they are not remotely plummeting at all. They are still going amazingly and I think it is still alright considering AMD partnered with 7 companies to offer different mining equipment for people.

I don't knoemif Nvidia's chip sales relate much to crypto currency. I mean if crypto currency is actually hinged on the sales of Nvidia chips then that won't be a decentralized currency. I think thearket itself is down whether on crypto currency or in the stock market's point of view.

Of course Captain Obvious!!!
The drop in sales is because the drop in crypto prices, we know what caused it, that's what we have discussed for two pages.
Did you bother to read  anything in this topic besides the title?

Even with the decline of their crypto chip production, I think it doesn't mean that Nvidia was the main reason why Bitcoin price plummet since it previous ATH of $20k. There should be other reasons to consider another this issue and not just Nvidia alone.

And another drop, as AMD suffers the same way:
https://www.marketwatch.com/story/amds-stock-craters-more-than-20-after-hours-on-weak-graphics-sales-2018-10-24

What puzzles me, is the fact that the spokesperson mentioned they are expecting to see again growth in Q4.
So ..he is either:
-Bullish on crypto prices
-Expects sales because of x-mas period
-He talks crap just to calm shareholders

often happens that when ordinary investors turn away from the market, the market begins to grow. so maybe this is the beginning of growth

In June we had one of the biggest spikes in hashrat,e 14.88%, just two points below the ones in December

Ok, let's take it in another way....
Right now, an S9J at my current power rates is bringing me close to 60$.
At this profitability rate, people are still adding miners.

Back in January, the same ASIC would have earned you close to 6 times this!
Why wasn't there a bigger rise in difficulty, and why we have them right now, when it's clear profits are down, increases comparable to that of December and January ?
And no, it's not because of more efficient miners, the current generation is nowhere near an increase of that proportion in hashing efficiency. It's simply because there weren't enough miners.

A look at bitmain's thread will show you that they've hiked prices for miners by a factor of 2 and still got sold out in a matter of hours. Why? Because there was nothing else to mine with available for sale.GPU mining reached its peak pretty fast due to the insane rates at which they can manufacture video cards, that's all.

It's like a guy who has 10km2 of land and buys 5 tractors and another who buys them one by one as in his country there are no tractors for sale.
In the first case, the guy will reach it's maximum efficiency fast and doesn't need additional tractors, the other is slowly but surely getting there. The first manufacturer has seen a 500% increase in sales and now he must brace for a 400% drop, the other is maintaining its sales rates at the same number.

Simply put, Nvidia thought (?) ( I'm not sure they've forecasted a linear growth) that ETH would increase or at least maintain levels to 01-01-2018, which would reflect ina 3x reward for miners. But ...something went wrong  

There might never be a significant spike in bitcoin's mining hash rate. Such efforts have the potential to be cancelled out by shifts in bitcoin's difficulty mining algorithm, which could reduce the cost effectiveness of deploying a significant rise in hash power. The type of spike you're looking for could also suggest a significant spike in ASIC manufacturing quantities, which is unlikely.

That entire chart you posted resembles a significant spike in btc mining power in my eyes. (Example: the spike above september 2018.)

Especially when factoring in decline of demand for nvidia GPUs and GPUs in general.

That is what happens in theory, but as I've told you before, the reality looks different

This is the ETH hashrate, as you can see from June 2017 to February 2018 is has jumped x5 times, and from March it hasn't advanced even 20%.



This is BTC hashrate:


From June to March it has gone up 4 times, but.....it has also gone 2.5 since then, unlike ETH.

So, what's the normal conclusion?
That is a far shorter time span ETH miners have managed to bring the hash rate closer to a point where it makes little sense to mine, this due to the availability of miners.
In BTC case, it was never a problem of having cheap electricity and mining not being profitable, and this is the reason we're having continuous growth as more and more ASICs are being produced and sold.

If indeed your assumption of ASICs taking over from GPUs in ETH mining would be real we would have seen a spike in the hashrate, right? Which is not there!!!!!

I've read it somewhere on the Web about a year ago (maybe a little over a year) that ASIC's had already reached their maximum theoretical capacity (in terms of hashrate) due to technological limits imposed by the semiconductor process based on silicon. It has been the case with CPU's for almost a decade already. Processing frequencies no longer grow as you can't indefinitely diminish the size of the tranny. Yeah, I know there are a host of other factors at play here, but sooner or later stray quantum effects invariably kick in. And with CPU's this threshold seems to have already been reached. Perhaps, it is the same with GPU's as well.

This can be due to the small amount of maintenance it has. It extends to inaccurate funds in its operation. This product is so delicate and limited. when im thinking of finding another energy source to use for something of mining. it can also be based on a wind or sea waves and so on. It is defined as an event that is truly effective as a solution.

I agree that we now have the bearish market, because of previously have a really bullish one, but I find it positive that Nvidia sales for crypto purposes are dropping. Graphic cards are designed no display visual effects, make the gaming and film watching experience more enjoyable. Mining is just something they happen to be good at, but gamers are pissed that miners make the demand for graphic cards too high. They should be buying equipment specifically made for these purposes, like Antminers instead. And there are also quite some pos coins, so maybe people are just using more of them.

You are terribly exaggerating things, as always. Bitcoin is not in a sustained decline, it is not even in a decline right now, let alone sustained. From a trader's point of view we are in what is called a sideways market. From a more global (fundamental) perspective we might have entered the stable phase (think US dollar here), which can last for a very long time. Even though I don't quite believe in that thing myself, it may be a pivotal point at which speculation subsides and real growth expands (kind of dynamic balance).


Actually, I am not surprised at all. I don't really know if it is a fact of life but I'm strongly inclined to think that all these graphics chips allegedly designed specifically for mining (these were likely just defective chips which would otherwise be trashed anyway) were totally subpar when compared with genuine miners. So we just got back to normal.

Most coin price drop more than 80% and miners dont have much incentives and profits. With bitcoin price cheaper than before, investor prefer buying in market rather than mining and i think it reducing chipset demand. I am believe when market recover, demand on chipset will increasing again

The fabrication process invokes moore's law.

A smaller nm semiconductor process gives you a higher hash rate and lower electricity consumption. Have you ever wondered how new generations of ASICs produce greater hash rates @ decreased energy consumption? Its due to the downsizing in nm scaling.

This observation holds true with both ASICs and GPUs. It plays a big factor in how competitive GPUs are with ASICs in terms of mining profitability.

Availability and backlog of orders might be a valid point. That hasn't been an issue in a long time though. Its more of a historical myth that hasn't necessarily reflected the condition of markets in awhile.

Unfortunately ASIC is not helping the GPU companies as well. ASIC are taking over all the algorithms of mining. At the moment there is no money on GPU anymore with the current market.

That's what people should understand. The lack of interest in chips has nothing to do with bear market. GPU mining was slowly becoming unprofitable anyway and their 100m predictions must have been based on the value of cryptocurrencies growing beyond the 2017 ATH. They made their predictions on the last 6 monts of 2017 and projected the profits onto 2018. You can't do that if you want reliable data.