Topic: Mining equipment sales expected to drop - page 2. (Read 283 times)
waiting for the next bitcoin and GPU pump
Mining profits are plunging and gpus have risen in price. That has led us to surplus of overpriced gpus. Nobody is willing to buy them with mining profits low. Another thing is quick coverage of algorithms with asics, we have an asic for everything now, and with second gen it will destroy gpu profits. We need more new asic resistant algorithms,
As someone who's been thinking about mining but hasn't gotten in to it yet I see the decline in price mostly due to a decline in ROI of buying mining gear. On many boards that I look at there are a lot of people saying that it's just much better to buy crypto instead of paying for the mining equipment. Especially now there's a lot of uncertainty in the market, new people to the game may not be as excited to drop thousands into mining equipment right now just based on the predicted ROI of their investment at the current price of BTC. Even now mining is extremely interesting to me and I'm still contemplating buying mining components, but I just don't think it'd be the best investment at this time.
In December/January I remember reading tonnes of posts about people looking into start mining, just because at that current level the time it would take to pay off your initial investment seemed to be relatively short.
I still think there's interest in crypto, but to become a miner you need to be extra invested into it since it will take a while for your investment to pay off.
Either way, it's an interesting article. Never expected the interest in mining equipment to drop off that quick.
In December/January I remember reading tonnes of posts about people looking into start mining, just because at that current level the time it would take to pay off your initial investment seemed to be relatively short.
I still think there's interest in crypto, but to become a miner you need to be extra invested into it since it will take a while for your investment to pay off.
Either way, it's an interesting article. Never expected the interest in mining equipment to drop off that quick.
Nvidia has announced that they expect sales of GPUs related to cryptocurrency mining to drop by about 67% in the current quarter. That's a pretty monstrous drop, and if mining investment is a leading indicator of overall market demand for crypto, it would follow that this decreased demand in mining equipment foretells decreased demand for crypto generally. If not a leading indicator, I think it has to be pretty tightly correlated with general crypto demand, so perhaps there's less investment in mining because there's less interest in crypto. 67% seems to be far too large to be a natural variance in buying patterns. If this was unrelated variance, I would expect a drop to be no more than 10%, so a drop this large suggests interest may be on the decline. This would seem to coincide with the price weakening we've seen as Bitcoin has failed repeatedly to get back over $10,000. Every time it gets close, it suffers a fall back below $9,000. It's almost impossible to draw any long term conclusions about this, but it's an interesting piece of the puzzle.
Quote
Demand from cryptocurrency miners was stronger-than-expected in the first quarter and translated into revenue of $289 million, Nvidia said Thursday on its earnings conference call. Crypto sales will probably fall by about two-thirds in the current fiscal quarter, the company said.
https://www.bloomberg.com/news/articles/2018-05-10/nvidia-reveals-crypto-sales-for-first-time-and-predicts-big-drop Jump to: