December 21, 2018. With the cryptocurrency bear market continuing on until the end of the year 2018, it also pulled the price of mining rigs down. The reason? The industry is now becoming more expensive to operate because of the dramatic drop in revenue.
AMD’s popular graphics processing unit (GPU), Radeon RX850, has sharply decreased its price from its peak average price of around $550 in February 2018 to the current $179.99. This GPU, aside from gamers, is sought after by many cryptocurrency miners. The decline of its price of around 67% is being dubbed as the “Crypto Winter” by cryptocurrency entrepreneurs.
With Crypto Winter happening, a lot of miners are now forced into quitting the industry and selling their rigs at very low prices. It was also reported that some miners are even selling their mining rigs by the kilo just to save and recoup their losses as the rigs are now at “shutdown prices”.
GPU producers such as NVIDIA and AMD are feeling the “Crypto Winter” as the number of people who are interested in cryptocurrency mining also died down. Because of the year-long bear market, it resulted in a sharp drop-off GPU sales to miners.
Ms. Lisa Su, AMD’s CEO, said during her interview with CNBC on April 26 that blockchain is “a bit of a distraction in the short term.” This is when crypto mining added 10% to her company’s revenue but she still believed that it is not a major factor in AMD’s growth.
According to JPMorgan Chase analysts and global market strategist Mr. Nikolaos Panigirtzoglou, the prolonged cryptocurrency bear market is scaring institutional investors. The reason for this is the dramatical downshift of key flow metrics and this includes the “Bitcoin futures market”.
Another CEO, Mr. Steve Brazier of Canalys, a technology research company, predicts that cryptocurrencies will have a tough time getting back on its knees. He said that the prolonged bearish market on bitcoin means that it is nearing its end. He added that this may affect the use of blockchain.
During the Blockchain Applications and Economics Forum (Blockchain Asia Forum) 2018, Union Bank had a large booth at the exhibition hall that showcases its commitment to spreading blockchain awareness in the country – a working mining rig. When asked about the bank’s plan with these mining rigs, Mr. Louis Concepcion, senior programmer, and Mr. Marco Romero, business process automation engineer at Union Bank, said this hardware is for experimentation purposes and to gather information about how they work.
This article originally appeared on BitPinas: Cryptocurrency Mining GPU Prices are Going Down
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