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During this week, the markets recorded a slight decline and the general sentiment towards cryptocurrency is negative. Fortunately, this is something that many of us can forget because we all know that markets will grow dramatically (hopefully, at least).
What we need to remember, however, is that when markets fall or remain stagnant (as they did this year) other industries also suffer from it, particularly the mining industry. Put simply, Bitcoin's declining value means that Bitcoin mining is no longer a profitable business, this is because the amount of Bitcoin that you extract from mining does not have a value significant enough to be useful. Furthermore, increasing energy costs means that, in some cases, mining is not just unnecessary, it could also endanger miners.
Over the course of the year, companies such as Nvidia have seen their profits and shares fall due to the collapse in Bitcoin prices. Fewer people are buying and using their products, so less money is taking them to Nvidia's pockets.
Second E & T:
"Nvidia has predicted poor sales for its graphics cards during the holiday season, which was partly attributed to the decline in demand as a result of the weakening of the cryptocurrency boom." The company's shares plummeted by 17% after announced sales forecasts, blaming the unsold chips accumulated with distributors and resellers after the boom in mineral crypts has vanished. "
Within their latest predictions, Nvidia expects to earn very little, which in turn obviously worries those who invest in the company, as a result of this, the shares have fallen by 17% and do not even seem to be turned from a moment to the other. ;other.
Jensen Huang, CEO of Nvidia, commented:
"Our short-term results reflect the excess inventory of channels after the cryptocurrency boom, which will be corrected: our position in the market and growth opportunities are stronger than ever. platforms to extend our architecture into new growth markets: RAPID for machine learning, RTX Server for movie rendering and T4 Cloud GPU for hyperscale and cloud. "
Moreover:
"Our introduction to Turing GPUs is a giant step for computer graphics and artificial intelligence, bringing the magic of ray tracing in real time to games and the biggest generational performance improvements we've ever made."
As we can see from Huang's comments, Nvidia is still bullish in the sense that he believes the cryptocurrency markets will recover and begin to rise again. Once the price of Bitcoin begins to exceed the energy costs associated with the mining of Bitcoin, the mining sector will once again become profitable. It seems that Nvidia is preparing for this development and they believe they possess the technology to make the most of the next wave of Bitcoin, whenever it could be.
