Nvidia, which is the world’s largest graphics card (GPU) and chip maker, has recently decided to quit all of its efforts for the crypto market – and shut down the crypto venture.
The CFO of Nvidia, Colette Kress, commented the company’s decision in an official statement:
“We believe we’ve reached a normal period as we’re looking forward to essentially no cryptocurrency as we move forward. Our revenue outlook had anticipated cryptocurrency-specific products declining to approximately $100 million, while actual crypto-specific product revenue was $18 million, and we now expect a negligible contribution going forward.”
The CEO of Nvidia, Jensen Huang, also added that the profitability of the crypto venture has declined substantially, mainly because of the low demand for crypto-focused mining chips and mostly because of the bearish market.
If we take the news that Bitmain (which is the biggest conglomerate in the crypto sector) recorded a profit of $1.1 billion in the first quarter of 2018 alone – this is 65 times greater profit than the one by Nvidia’s cryptocurrency venture.
Speaking of, Nvidia generated a profit of $550 in the first three months of 2018, while Bitmain made a profit of $1.1 billion. Therefore, some can and some cannot understand Nvidia’s decision to exit crypto and move away from the position of the largest chip maker in the world.
However, analysts think that Nvidia is mainly quitting its crypto venture because of the low demand for GPUs – and not the downward trend for cryptocurrencies. In times when the prices of major cryptocurrencies are down by 70%, selling GPUs and chips can still be a profitable venture – but not with a low demand and low interest for activities like these.
The good news for the market, however, is the fact that the cryptocurrency prices are stabilizing over the past few weeks and with that, the interest in crypto mining may rise in the coming months.
Bitcoin’s Problems Can Be Solved By Leaving The Proof-Of-Work System: BIS
“Simple calculations suggest that once block rewards are zero, it could take months before a Bitcoin payment is final, unless new technologies are deployed to speed up payment finality.”However, in the study there is little praise for the Lightning Network as well, claiming that it could help but the real remedy for improving the network would be by saying goodbye to the proof-of-work method. Leaving the protocol would likely require a sort of coordination and possible institutionalization. The conclusion is basically that ‘’in the digital age too, good money is likely to remain a social construct rather than a purely technological one.’’ The Bank for Institutional Settlement is basically a group of 60 central banks which account almost 95 percent of the global GDP. BIS issued another report a few weeks ago where it was explained that nearly seventy percent of the central banks in the world are researching the option for a central bank digital currency and how to issue it. The major financial institution found a solid correlation last September between the crypto prices and the news about regulation that swamped the news platforms worldwide.
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UN Thinks Bitcoin & Crypto Are “The New Frontiers” In Finance, Focusing On Ripple And IOTa
“Cryptocurrencies represent a new frontier in digital finance and their popularity is growing. The decentralized networks for cryptocurrencies, bitcoin being a well-known example, can keep track of digital transactions. They enable value to be exchanged and can give rise to new business models which would otherwise require significant regulatory and institutional commitments." the report states.According to the UN, blockchain and crypto have many use cases. As it is explained in the document:
"For example, a value token called ClimateCoin is being considered as a basis for creating a global market for carbon emissions, allowing peer-to-peer exchange of carbon credits and a direct connection with the Internet of Things. It would then be possible for devices to calculate their own carbon emissions and purchase carbon credits to offset those emissions."The document also focuses on innovation and how it comes from inherent trust, citing that "the innovativeness of this system lies in the way in which the various parts combine to create the trust and guarantees that the traditional financial system derives from institutions and regulation."
Wall Street Investors Need ETNs To Join The Crypto Space: CBOE President
“The power of having that future there is also having an ETN that is more attractive to retail, and then institutions can lay that risk off on the listed futures market. [...] Absent that leg and introducing trackers or notes, I think we will be in this, 'It trades every day, but it is not the story.'”He also said that the main reason why regulators did not approve a Bitcoin exchange-traded product such as the (still-pending) ETF applications is that the regulators cannot protect investors from manipulation on a market. “You answer that question, you get your first ETN,” the president of CBOE concluded.
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