Bitcoin has been in a slump. And mining rigs are down too.

In a span of a few weeks, Bitcoin (BTC) has been on a downward spiral. And, as a result, the prices of mining rigs are down too.

PC Gamer reports that the prices of popular mining rigs, like AMD’s Radeon RX580, is now priced at $179.99, a big drop from $550 from February 2018, a whopping 70% drop in price. The magazine also believes that the “Video Card Drought” of 2018 is now officially over. “We can mark Q1’18 as the peak and last hurrah of the crypto-mining fever. Desktop GPUs, which went into mining rigs, have dropped back to their normal volume,” says JPR, a research firm. “We believe the market for AIBs [add-in boards] for crypto-mining has ended and this will likely be our last mention of it.”

The sudden drop in prices was expected, with Bitcoin reaching lows that it didn’t reach since June of 2017, the start of the “Bitcoin Bullrun”. BTC plummeted to as low as $3100 or around 158,100 Php* last week. But NVIDIA, the company competing with AMD in terms of GPU brands, was taken by surprise. In their 2nd Quarter Earnings Report, the lamented on “lower than expected” sales on GPUs, and adamantly declared that the cryptocurrency mining craze is over at least for now, saying “Our revenue outlook had anticipated cryptocurrency-specific products declining to approximately $100 million, while actual crypto-specific product revenue was $18 million. Whereas we had previously anticipated cryptocurrency to be meaningful for the year, we are now projecting no contributions going forward”.

Still, Bitcoin has been steadily rising for a few days now, with possible signs of a price uptick. While the world of cryptocurrency mining has become unprofitable to many, when it goes on another “BTC Bullrun”, will the GPU manufacturers be prepared for another surge in demand for GPUs?

 

*1$ = 51 Php

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An avid cypto supporter, law school student, Certified Public Accountant, and a professional HODLer