The massive decline in crypto mining profitability has impacted heavily GPU producers such as Nvidia which as previously reported in our blockchain news, experienced a massive sell-off of its shares dropping the stock price by almost 55 percent.
Nvidia is now ranked as the worst performer in S&P 500. From 2016 until September this year (2018) Nvidia’s market value increased to $175 billion since the demand for GPU for crypto mining increased immensely. The company reported the profits from crypto mining back in May showing a two-thirds drop in sales for Q2.
The company showed insignificant crypto mining relates sales in Q3 but the GPU sales for blockchain-related applications disappeared. The CEO of Nvidia Jensen Huang explained that the results show ‘’excess channel inventory after the cryptocurrency boom.’’
The decline in crypto-related sales has brought the company to a ‘’crypto hangover’’ according to Jensen Huang. The crypto madness brought the price to increase a lot but once the demand disappeared, prices didn’t decrease fast enough to attract new customers.
Now, the stocks of Nvidia are down by 4.09 percent.
Chip stocks have also performed poorly this year. Major hardware producers such as Nvidia and Advanced Micro Systems show a drop in the PHLX Semiconductor Index by 20.37 percent over the past three months. AMD’s share price is also down by 45.43 percent.
After the mining boom happened, there has been a huge drop in prices. AMD’s most popular Radeon RX580 Graphics processing unit is now selling for $180 which is down by almost 70 percent after it was selling at $550 in February.
Miners are excessively leaving the business and are even selling off their hardware. The profits from crypto mining are not enough to cover the electricity costs or any other associated costs.
Justin Sun Rescheduled The Lunch With Buffett Due To Health Issues
“I was in the hospital for sudden kidney stones, and I canceled the lunch with Mr. Buffett.”He did continue to say that his health is currently fine. The situation was also confirmed by the TRON foundation on twitter. Warren Buffett also agreed to reschedule the meeting. According to the Tron foundation tweet:
‘’TRON Foundation announces postponement of Warren Buffett lunch, press conferences after founder Justin Sun falls ill with kidney stones. Parties agreed to reschedule at a later date.’’Some users believe that this is just another one of the mishaps that Justin Sun and the foundation has. The last time the situation involved a mix-up with some Teslas that Sun was supposed to give away. The community leader also offered to give Binance more than 7,000 bitcoin after it was hacked. Sun even once described the questions that he was asked by CoinDesk’s Pete Rizzo as ‘’tough’’ earlier this year after he did not have an answer to them. Justin Sun rescheduled the lunch when it was too close to happening so this is why the crypto community is a skeptic and many are wondering whether he chickened out. Warren Buffet is a well-known crypto skeptic and is famous for being wrong in the past mainly talking about google. He is known for his ability to predict macro trading patterns and because of the major influence he has over Wall Street. As noted in the latest cryptocurrency news, Sun, Allaire, and Lee hope to change his mind regarding crypto.
Robinhood Gathered $323 Million, Still Can’t Reach Coinbase
“We’re focused on building products and services that expand access to our financial system. Since May of last year, we’ve launched our own clearing system, Clearing by Robinhood; rolled out a new Robinhood Gold experience including Nasdaq Level 2 Market Data; and introduced multi-leg options strategies. We also acquired Robinhood Snacks to bring people digestible financial news; grew our management team, including leaders for operations and finance; and expanded Robinhood Crypto to more than 30 states.”If you take a closer look at the features that the company ships out, Robinhood crypto stands out as anything remotely groundbreaking. Everything else is either already on the market or old news which makes the attractiveness of the broker less magical. There are about 4 million people that use the platform of the Robinhood App while in the meantime Coinbase only makes deals in Bitcoin and other crypto assets, scored a stunning $8 billion in value last year. The fact that Coinbase value is now even higher than the one in 2018 after the bitcoin price plummeted, suggests that the crypto exchange could now be worth more than $8 billion. With the improving prices and the sentiment on the market make up for a great period ahead for Coinbase’s value but it still not clear how much they will affect Robinhood. Robinhood aims to be different and even brands itself like such but the perception could not be further from the truth. Saying that your platform has zero commission does not mean that there will be free trading at all and they also perform the anti-client action of selling order-flow to HFTs just like other exchanges do. Robinhood gathered a huge sum of money as noted in the altcoin news, but the only difference could be better marketing.
Government Of Iran Officially Legalized Crypto Mining
‘’A mechanism to mine digital coins was approved by the government’s economic commission and will later be put to discussion at a cabinet meeting.’’As reported in the latest cryptocurrency news, the Deputy Minister of Energy Homayuan Haeri noted that the new decision will let the miners operate in Iran and pay the energy bills without the subsidy offered by the Government of Iran so the country can stimulate the economy and receive extra income on mining.
Bakkt’s Moonshot Futures Program To Start Testing Today
“There appears to be a critical mass of adopters ready to come on board on Day 1 of the Bakkt launch… The launch could be a huge accelerator for market growth.”Bakkt’s Moonshot which was rolled by the Intercontinental Exchange (ICE) which is the parent company of the New York Stock Exchange and both Microsoft and Starbucks is not the most anticipated launch of the year. According to a post written on Medium by Adam White in June, the platform will begin the user acceptance testing today: Bank-rolled by the Intercontinental Exchange (ICE) - the parent company of the New York Stock Exchange - as well as Starbucks and Microsoft, Bakkt is the most anticipated launch of 2019.
“On July 22, two days after Apollo 11’s 50th anniversary, Bakkt will initiate user acceptance testing for its bitcoin futures listed and traded at ICE Futures U.S. and cleared at ICE Clear US.”While the bitcoin futures trading is not a novelty, Bakkt brings fresh air on to the table. The futures contracts are basically settled in Bitcoin so the investors will receive a real allocation of BTC at the end of the contract period. Also, the CME bitcoin futures are tracking the spot price and are settled in cash but they never actually touch bitcoin. Bakkt will also provide institutional-grade custody for digital assets and this will be fully regulated. The company applied for a trust license which makes it possible to act as a qualified custodian with more than $100 million in insurance coverage. The market research company Fundstrat, stated last week that Bakkt will be a major booster for the price of bitcoin since more than 150 institutional investors and service providers who attended the digital asset summit last week responded positively on the project as it was reported in the latest cryptocurrency news.
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- Japanese Exchanges Demand Tax Reforms From Regulators
- Coinbase Amassed 30 Million Users: 5 Million In Last Month
- TRON Price Tumbles After The Rescheduled Lunch Between Buffett And Sun
- Circle Expands To Bermuda Due To Pro-Crypto Regulation
- Justin Sun Rescheduled The Lunch With Buffett Due To Health Issues
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