AMD’s popular Radeon RX580 graphics processing unit (GPU), that has been widely utilized by crypto miners, is currently being sold for $179.99, gaming magazine computer Gamer reported on Thursday, Dec. 20.
This means that the GPU, that reached a peak average value around $550 in Feb 2018, has seen a 67 % value drop throughout the pessimistic year, dubbed “Crypto Winter” by some crypto entrepreneurs.
As Top Market Group antecedently reported, the year-long market} has had a major impact on the crypto mining industry, with dramatic drops in revenue forcing several miners to quit the business and unload their instrumentality. Some miners have even started selling mining devices by the kilogram in an attempt to recoup losses as their rigs reach “shutdown costs.”
Consequently, the “Crypto Winter” has also affected GPU producers like Nvidia and AMD. Reduced interest in crypto mining resulted during a sharp drop-off in GPU sales to miners with AMD reportage that their crypto-related sales in Q3 2018 were “negligible.”
In the spring of 2018, AMD chief executive officer Lisa Su stated, "[Blockchain technology is] a awfully necessary technology [...] the concept you'll be able to do all these peer-to-peer transactions, a localized network, it’s an honest technology, however honestly l suppose it is a bit of a distraction within the short term.” concerning the impact of blockchain applications on the firm’s business Su said:
“We believe blockchain or mining was regarding approximately 10 % of our revenue throughout the [first] quarter. and therefore the truth is there are a lot various factors in these estimates. we feel we've got a awfully sensible plan of what individuals are using our product for. It’s a pleasant growth factor, however it’s never the dominant growth factor in our story.”
In mid-November, Nvidia’s share value plunged after Q3 monetary results disclosed a “crypto hangover” within the company’s GPU sales. within the report, Nvidia founder and chief executive officer Jensen Huang said that the company’s “near-term results replicate excess channel inventory post the cryptocurrency boom, which can be corrected.”
In different words, the crypto mining frenzy drove up costs for Nvidia’s GPUs, however once that demand disappeared, costs didn't decrease quickly enough to draw in customers who were looking ahead to more affordable cards.
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