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.
New York Stock Exchange (NYSE) Delays The Bakkt Bitcoin Futures Launch To 2019
“ICE Futures U.S., Inc. will list the new Bakkt Bitcoin (USD) Daily Futures Contract for trading on trade date Thursday, January 24, 2019, subject to regulatory approval. The new listing timeframe will provide additional time for customer and clearing member onboarding prior to the start of trading and warehousing of the new contract.”According to analysts, there are speculations that Bakkt's scheduled December launch could help and catalyze a new year-end crypto market rally - with bulls such as Tom Lee predicting that the price of Bitcoin can ascend to as high as $15,000 before 2018 ends.
Funny Or Not, Tom Lee Lowers His Year-End Bitcoin Price Target To $15,000
“Global markets have seen liquidity dry up, and bitcoin is not necessarily a value asset — so as growth stocks, tech, and FAANG come under pressure, it’s going to hurt bitcoin. The downturn in FAANG is hurting those owning bitcoin.”Despite the killer downward trend that Bitcoin is facing right now, Lee remains bullish about crypto and believes that we are merely undergoing an "awkward transition." As he stated, crypto still has a bright long-term future ahead and there is no doubt that institutional investors will start coming around. https://twitter.com/CNBC/status/1064925085641965568 "“The next wave of adoption is institutional,” Lee said. “There is a crossover happening. This is just an awkward transition.” He also said that institutional investors will start making giant leaps into crypto. As he revealed:
“Institutional backing will come soon. You will get it partly through infrastructure, like Bakkt, which is launching soon. Part of it is going to come through regulatory clarity.”Tom Lee concluded by saying that the regulatory scrutiny of crypto scams would benefit the industry by easing consumer and institutional anxiety about the burgeoning industry.
“Digital assets are going to be relevant in a world where growth is increasingly digital,” Lee said. “So bitcoin is a real bet on [the future].”
Early 2017 Crypto Investors Are Rapidly Starting To Sell Bitcoin
“We are seeing the folks who bought in early 2017 sell for the first time today.’’He added that the majority of the Bitcoin early investors that purchased Bitcoin in the first quarter of 2017 now believe that they are seeing zero return on their investment. As of today, November 20, the price of Bitcoin reached a new low again for a second time this week going down under the $4,753. CryptoDog, a technical analyst explained the current bitcoin drop:
“The bears aren’t even pushing, BTC is just free-falling. Very weak dump, imagine what it looks like when the volume comes in. A short-term reversal could happen at any moment – shorting with high leverage is a terrible idea. However, if you are trying to knife catch, be patient. No one should be in a rush to long this.’’Despite the drop, BTC’s volume increased to $8 billion which as a more than 60 percent increase while expecting BTC to establish a bottom trend at $4 billion. This is one of the reasons why the investors who bought BTC at $1,000 are considering selling a huge part of their holdings fearing that another drop might be happening in the next few days.
Bitcoin Takes A New Beating, Goes Below $4,500 As Market Loses $25 Billion
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- New York Stock Exchange (NYSE) Delays The Bakkt Bitcoin Futures Launch To 2019
- Indian Government To (Finally) Draft Crypto Regulations This December
- (Some) Crypto Exchanges Resume BCH Trading, Bitcoin Cash Price Reaches New Lows
- After Days Of Resistance, Ripple (XRP) Suffers A Major Price Drop
- Funny Or Not, Tom Lee Lowers His Year-End Bitcoin Price Target To $15,000
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