According to research firm Susquehanna, Ethereum mining carried out through graphics cards (GPUs) would no longer be profitable.
Each GPU, however, generated nearly $ 150 in profits in the summer of 2017.
Nvidia suffers from the decline in attractiveness of its graphics cards, and the share of its turnover directly related to cryptocurrencies would have been close to zero in the third quarter.
The mining of cryptocurrencies is not what it was.
According to research firm Susquehanna, individuals who use graphics cards to undermine Aether not succeed in generating profits . Involved : the arrival, a few months ago, ASIC miners designed for the Ethash algorithm, but also the dive of the price of digital currency (BCHAC Wallet).
Nvidia abandons digital assets
In August, Nvidia decided to close its division for cryptocurrencies following the fall of the appetite of users for mining GPU . This is essentially a market now dominated by miners ASIC , specialized chips mainly produced by the Chinese giant Bitmain .
This week Christopher Rolland , one of Susquehanna analyst, told CNBC that income NIVIDIA related crypto-currencies were close to zero in the third quarter 2018 .
Since last year, however, Ethers mining has been a major source of income for California society. She had passed many kits GPU-mining – each kit that allowed the holder to generate up to almost 150 dollars in monthly profits during the summer 2017 . Due to low barriers to entry, many individuals had decided to try the adventure by setting up small mining operations, in order to capitalize on the excitement of digital assets.
But according to Susquehanna, the situation has changed considerably. The profitability of this equipment has since gradually decreased, and it would now be zero. In a note sent Tuesday to its customers, the research firm notes that the situation was caused by a combination of factors.
She cites the widespread fall crypto-markets – Aether has depreciated by over 85% from its record high in January – but also the loss of competitiveness minor GPU face efficiency minor ASIC. And it is Nvidia that seems particularly to bear the brunt of the decline in profitability of GPU mining. The company had recorded a sharp rise in sales following the soaring Ether, which occurred during the year 2017. At the time, this runaway had allowed its action to soar. But since the beginning of the year, while many mining pools have decided to close the door, the small miners have difficulties to make their investment profitable. At the same time, the mastodon Bitmain launched its Antminer A3 , which allows to mined Ether much more efficiently than with a GPU .
Despite the announcement of its withdrawal from crypto-markets (BCHAC Wallet), Nvidia continues to suffer, with a share down 16% over the last 30 days . If its chips are primarily for gamers, some of its sales seem to be still dependent on crypto-markets.
This is what Christopher Rolland said in the note received this week by Susquehanna’s clients:
We estimate that revenue generated this quarter from GPUs sales related to cryptographic operations was very low. This is consistent with the company’s recent comments that it did not include any cryptocurrency contributions in its third quarter reports. During this period, the profitability of mining continued to decline, while Ether prices have fallen more than 70% since the beginning of the year.