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.
Deloitte Features Blockchain In Its Annual Tech Trends Report
“Today, blockchain is to trust what the web was to communication: a profoundly disruptive technology that transforms not only business but the way humans transact and engage," the report notes.Deloitte also agrees that blockchain is viral, saying that the technology is “capturing both mindshare and investment is remarkable considering that a few years ago the word blockchain was known only through its relationship to cryptocurrencies. One of the areas where blockchain is likely to develop in the coming year, according to Deloitte, is the technology that includes "gateways, integration layers and common standards." However, Deloitte also shared the obstacles of implementing the technology, mainly related to the time-consuming operations, lack of standardization, high costs and complex applications.
Stellar’s XLM Token Added To Greyscale’s Crypto Investment Trust Fund
“I think the theory is a sound one,” he said about Stellar’s business proposition for bridging crypto to fiat currency conversions. An American bank may be keeping large amounts of currencies in foreign banks, and to be able to bring those balances of foreign currencies onto a balance sheet as working capital is valuable. Financial institutions won’t be required to hold balances all over the place. This will improve efficiency and shore up balance sheets for other uses.”Stellar had amazing performance especially in Q4 after striking a deal with crypto wallet provider Blockchain.com in order to start distributing XLM that is worth $125 million in an airdrop, hoping to increase bigger awareness and adoption. In the meantime, Greyscale had a mixed year in 2018 after bitcoin dropped to its 15-month low at $3,130. The company’s Bitcoin Trust was worth less than $1 billion for the first time in 2018. According to the crypto industry newsletter Diar’s research, Greyscale in the same apparently had holdings just over one percent of the total BTC in circulation. After the announcement, Stellar increased up by 1.22 percent.
SEAT Car Manufacturer To Start Working On Blockchain-Based Products Development
Bitcoin ATM Operator Coinme To Start Selling BTC At Coinstar Counting Machines
“Bitcoin is now accessible at your local grocery store via Coinstar kiosks, and this offering will make it even easier for consumers to participate in this dynamic new economy.”Coinstar, on the other hand, offers coin-to-cash conversion in their kiosks in multiple countries around the world but it still remains unknown whether the Bitcoin feature will expand just as quickly as it did in the US. Coinstar’s CEO Jim Gaherty noted: Coinstar offers coin-to-cash conversion kiosks in various countries throughout the world. It remains unknown whether the Bitcoin feature will expand beyond the U.S., while the company did not provide figures on how many machines will offer it.
“Coinstar is always looking for new ways to offer value to our consumers when they visit our kiosks.’’According to CoinATMRadar industry monitoring resource, there are more than 4187 Bitcoin ATMs worldwide and more than 60 percent or 2516 are in the United States. The market has grown plenty over the years and many operators are trying to get control of what they think to become a fairly popular trend for crypto usage.
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