Cryptocurrency miners are increasingly exiting the industry, a stark testament to the same is the whopping 67 percent decline in the price of Advanced Micro Devices’ (AMD) popular Radeon RX580 Graphics Processing Unit (GPU), as reported by the gaming magazine PC Gamer on December 19.
AMD’s GPU reached a high of about $550 in February of this year an aftereffect of the incredible price rise at the end of 2017. Currently, the same GPU is selling for a lowly price of $179.99 due to the “Crypto Winter” which hit its undeniable peak in the penultimate month of the year.
Several GPU manufacturers have also bared the brunt of the cryptocurrency price decline, with Nvidia also recording declining prices.
Nvidia felt the shocks of the cryptocurrency meltdown, with their Q3 share price experiencing dismal lows, due to their falling GPU sales. Jensen Huang, the CEO, and founder of Nvidia said with reference to the company’s, “results reflect excess channel inventory post the cryptocurrency boom, which will be corrected.”
Lisa Su, the CEO of AMD called the underlying technology that is powering cryptocurrencies i.e. blockchain as a “distraction in the short term.” She, however, acknowledged that it is a, “very important technology,” given its pillars of, “peer to peer transactions,” and a, “decentralized network.” AMD recorded “negligible” sales in their crypto-related products in the third quarter of this year.
“We believe blockchain or mining was about approximately 10 percent of our revenue during the [first] quarter,” said Su. She added, “We feel we have a very good idea of what people are using our products for. It’s a nice growth factor, but it’s certainly not the dominant growth factor in our story.”
Earlier in November, when the cryptocurrency markets saw their market cap drop by over $100 billion in one month, miners were hit by the declining price of the top-crypto, Bitcoin and were selling off their devices by the kilo. Older mining models like the Antminer S7, T9 and Avalon A741 were reported to have reached their “shutdown price.”
Mao Shizing, the CEO of the cryptocurrency mining pool F2Pool published an infographic showing that if Bitcoin were to fall to under $5,300 (36,779 yuan), the Antminer T9 would be unprofitable. The aforementioned S7 model miner would just about break even if Bitcoin would rise up to $11,500 (79,805 yuan). At press time, the price of Bitcoin stands at $3,800, according to CoinMarketCap.
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