Cryptocoin Mining Downturn – New mining rig revenue down 80%
According to the Wall Street Journal, Nvidia’s Crypto Business is drying up. Reason? The Cryptocoin mining downturn. Nvidida was expecting $100 million in cryptocurrency mining hardware sales during the last quarter. They barely booked $18 million. What makes this news all the more astonishing that this same time last year, the Nvidia product line was commanding higher-than-retail premium prices in response to unquenchable demand for the graphics card that power most cryptocoin mining rigs.
Just a year ago, retailers had to put a limit on the number of graphics cards a customer could buy. People were converting laundry rooms, spare bedrooms and basements into cryptocurrency mining farms. With the plummet of cryptocoin prices across the board, the cryptocoin mining downturn caught Nvidida off guard. To wit, I voluntarily shut down my own bitcoin mining operation since current pricing of Bitcoin makes running high-powered ASIC Bitcoin miners a losing proposition. Bear in mind I am sitting on a deployment of Avalon 741s. My Bitcoin mining operation is staying dark until BTC prices rebound. That being said, I intend to purchase truckloads of new ASIC Bitcoin mining hardware at today’s bargain prices.
That’s because the pricing on Bitcoin miners has plummeted. Looking back to last August, an Antminer S9 was almost impossible to get directly from Bitmain. eBay was loaded with listings selling Antminer Bitcoin miners at an average price of $5,000 EACH and they sold out constantly. Now the same – if not better – Bitcoin Antminer S9 can be purchased for just $599. The cryptocoin mining downturn could produce winners and losers.
You’re a winner in this current scenario if you believe cryptocoin prices will rise. Doubling down on your bet and buying cryptocoin mining hardware on the cheap could make you wealthy beyond your wildest imagination if cryptocurrency pricing rebounds. On the other hand, playing it safe and keeping your cryptocoin miners dark might be the best way to go during this cryptocoin mining downturn.