Nvidia CEO Smells Burnt Toast When it Comes to Cryptos: “Cryptocurrency Is In Our Past”, But Has a Place
Cryptos were a lost bet for Nvidia. You may remember how much the company profited back in 2017 when the crypto market exploded and everybody was buying new rigs in order to mine cryptos because it was so profitable when prices were up to $20,000 USD per BTC.
Now, however, prices are just below $4,000 USD, so mining has become largely unprofitable if your electric energy is not cheap or you do not have an ASIC miner. GPU miners are, indeed, a relic of the past now in most chains.
This is probably why the CEO of Nvidia, Jensen Huang, has affirmed that the company is done with this market. “Cryptocurrency is in our past”, he affirmed during a recent press conference in Tel Aviv, Israel.
The company simply could not let the opportunity pass when everybody wanted to buy GPUs to mine tokens, but the truth is that the company ended up over shipping their graphics cards. Interest went down and they simply had too many of them in the market. This made the profits of the company decline 24% in the last quarter of 2018.
However, now that the company is set to not be carried away by the crypto hype again, Huang says that he is certain that Nvidia will “recover very nicely” in 2019.
Nvidia will surely keep selling GPUs to miners for as long as they want, obviously, but the company has no plans of actually supporting this market in a meaningful way. With even specialized companies like Bitmain struggling with the bear market, we, unfortunately, cannot say that this is not a wise decision for now.