Nvidia Loses 54% Market Share Amid Falling Mining Markets

2018 hasn’t been a prosperous year for anyone related to the crypto world. The trade market has been in shambles touching new lows, the miner community is constantly declining as a direct result of the bearish trends, and the  GPU based mining rigs have become like Venezuelan currency as it leaves very fewer profit margins, sometimes not even compensating for the cost of input and energy bills.

In the latest development, Nvidia, a prominent producer of GPU based mining rigs, has suffered a loss of 54 percent in the fourth quarter of 2018. The fall has made the company one of the worst performers in the S&P 500, as reported by CNBC on December 21

The Rise and Fall of Nvidia: A Timeline

The rise of Nvidia began in 2016 when the market for miners was on the rise. Nvidia manufactured GPU-based processing units which were used in both, Artificial intelligence industry and crypto mining industry. The demand soared and so did the market value of Nvidia; growing from a mere $14 Billion to a massive $175 Billion within 1.5 years.

2018 brought the doom over the cryptomarkets and anyone associated with it, as the prices fell, it became impossible to own and make a profit out of solo-GPU mining rigs. In Q3 this year, Nvidia reported insignificant sales of its blockchain mining rigs and by November the sales of mining rigs almost came to a standstill.

There was no balance between the fall in prices of cryptocurrencies and the decrease in prices of mining rigs, leaving no other option than opting out. Currently, Nvidia is facing crypto hangover where it rose to the top quickly in the wake of the mining boom in cryptocurrencies and the downfall was even quicker, thanks to volatility in the crypto trade market.

Final Thoughts

2018 has been really harsh on the mining community with many leaving the mining process in absence of any visible profit. Individual mining, especially using GPU or CPU rigs is next to impossible. Mining Pools and Mining Farms have slowly emerged as the go-to destination for the miner community, in an effort to make at least some profit. If the prices of the cryptocurrencies do not rise we might actually see an end to the trend of solo-mining sooner than we expected.