Nvidia, the largest developer of graphics processors and computer chips, originally working in the video game market and later conquering the market of mining equipment, gave up and stopped investing in the development of this particular business.
Given the development of alternative types of hardware for faster mining and the significant decline in the price of Bitcoin, the former demand for Nvidia's products has dropped significantly, and almost no one is buying the company's GPUs for mining anymore.
“We no longer have to wait for profits from the cryptocurrency sector. Previously, the company's mining equipment revenues were in the billions, but now they are only $18 million and we expect them to fall further," said Colette Kress, Nvidia's chief financial officer.
"At the beginning of the year, we thought that revenue from the cryptocurrency sector would be a large percentage, but now, under the current circumstances, our forecasts are disappointing," said Nvidia CEO Jensen Huang.
More and more mining and cloud mining companies are ceasing operations or reducing the number of clients, but in the case of cloud mining, if the price of cryptocurrency starts to rise, they will be able to restore their activities, but companies such as Nvidia will not be able to, since the technologies used will be outdated and irrelevant.
For Nvidia, the production of mining equipment has turned out to be a profitable but unreliable business, and now it needs to look for new sources of income.
Perhaps the company will explore other opportunities in blockchain technology, or perhaps focus more on gaming technology while competitors are busy mining. Perhaps Nvidia will eventually control the gaming market entirely.
But today gamers are celebrating their victory over miners.
According to cryptodaily.co.uk
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