In line with a recent report ‘published‘ by ‘PC Gamer’, Radeon RX580 – AMD’s renowned GPU [graphics processing unit], that has been wide utilized by crypto miners, is currently being sold for just $179.99 USD.
This means that the GPU, that reached a peak avg. worth around $550 USD earlier in the month of Feb. this year, has seen a price drop of around 67 % throughout the year, dubbed ‘Crypto Winter’ by some crypto entrepreneurs.
As previously ‘reported‘, the year-long bear market has had a major affect on the crypto mining industry, with dramatic drops in revenue forcing several miners to quit the business and dump their mining hardwares. Some miners have even started selling their mining equipments in “kilo’s” in an endeavour to recoup losses as their rigs reach “shutdown costs.”
Consequently, the “Crypto Winter” has conjointly affected GPU producers like Nvidia and AMD. Reduced interest in crypto mining resulted in a very sharp drop-off in the sales of GPU to miners with AMD stating that their crypto-related sales in Q3 of 2018 were “negligible.”
In the spring of 2018, AMD’s chief executive officer ‘Lisa Su’ expressed, “[Blockchain technology is] a awfully necessary technology […] the thought you’ll be able to do all these peer-to-peer transactions, a decentralised network, it’s an honest technology, however personally l assume there is a little bit of distraction within the short term.”
While concerning the impact of blockchain applications on the firm’s business Su added:
“We believe blockchain or mining is approx jut ten p.c of our revenue throughout the Q1. and therefore the truth is there are a several factors in these estimates. We feel we’ve got a awfully smart plan of where individuals would be using our products. It’s a pleasant growth factor, however it’s never the dominant factor in our story.”
Earlier in Sept. this year, Nvidia’s share value plunged when Q3 monetary results discovered a “crypto hangover” within the company’s GPU sales. in the report, Nvidia founder and chief executive officer ‘Jensen Huang’ aforesaid that the company’s “near-term results mirror excess channel inventory post the cryptocurrency boom, which can be corrected.”
In different words, the crypto mining intensity drove up the prices for Nvidia’s GPUs, however once that demand disappeared, costs didn’t decrease quickly enough to draw in customers who were anticipating cheaper cards.