The year 2018 has been very interesting for the cryptocurrency industry. With all prices tumbling, it is evident a new paradigm looms on the horizon. For cryptocurrency miners, profits have declined sharply. This may effectively bring an end to the rising GPU prices, which have annoyed gaming enthusiasts all over the world.
Cryptocurrency Mining Earnings
There has always been substantial debate over how profitable cryptocurrency mining is. It all depends on the conditions users have to work with. The upfront investment, electricity costs, and prices of individual mined currencies are all contributing factors. It seems the current bearish market trend throughout 2018 has caused miners’ earnings to plummet dramatically.
While that is not a positive development, there is no immediate reason for concern. In most cases, miners will break even as long as the Bitcoin price remains above $3,300. This figure is for China due to their low energy costs, but the breakeven point is a good deal higher in other countries. Even so, the individual value of altcoins being mined may fluctuate sharply. Rest assured most users are still making a profit, albeit a lower one compared to late 2017.
The bigger question is how that situation will evolve. Lower profits may force some miners to rethink their mining operation. At the same time, there’s a realistic chance the value of Bitcoin and altcoins will surge in late 2018. Missing out on those potential profits is also something to take into consideration. Cryptocurrency markets tend to turn volatile quite regularly, and one always needs a long-term plan first and foremost.
GPU Demand Is Slowing Down
One “positive” side effect of the declining mining revenue is how demand for GPUs will taper off. Since there’s less money to be made, most miners aren’t looking to invest in GPUs as of right now. For companies such as Nvidia and AMD, that will undoubtedly have an impact on their quarterly earnings reports. Both companies acknowledged in early 2018 a decline in demand was to be expected.
For the video gaming enthusiasts out there, this is also great news. Due to the mining interest, prices for GPUs have skyrocketed in 2017 and early 2018. Some cards are even $200 more expensive compared to mid-2017. It is a worrisome trend, although one that is seemingly correcting itself as of right now.
All things considered, the declining mining revenue isn’t that concerning. Cryptocurrency enthusiasts will find new ways to make money. Lower GPU prices will keep gamers happy for the remainder of the year. No world-shattering changes need to be expected. Nor will it have any real impact on cryptocurrency prices either.
Are you a gamer that is happy that GPU prices will likely come back down to normal? Have you seen declining mining revenue? Let us know in the comments below.
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