- According to research firm Susquehanna, Ethereum mining carried out through graphics cards (GPUs) would no longer be profitable.
- Each GPU, however, generated nearly $ 150 in profits in the summer of 2017.
- Nvidia suffers from the decline in attractiveness of its graphics cards, and the share of its turnover directly related to cryptocurrencies would have been “close to zero” in the third quarter.
The mining of cryptocurrencies is not what it was.
According to research firm Susquehanna, individuals who use graphics cards to mine the Ether would no longer be able to generate profits. At issue: the arrival a few months ago of ASIC miners designed for the Ethash algorithm, but also the dive of the price of digital currency.
Nvidia abandons digital assets
In August, Nvidia decided to close its cryptocurrency division, following a decline in netizens’ appetite for GPU mining. It is a market now dominated mainly by ASIC miners, specialized chips produced mainly by the Chinese giant Bitmain.
This week, Christopher Rolland, one of Susquehanna’s analysts, told CNBC that Nividia’s cryptocurrency revenues would have been “close to zero” in the third quarter of 2018.
Since last year, however, Ethers mining has been a major source of income for California society. It had sold many “GPU-mining” kits – each kit allowed the holder to generate up to $ 150 in monthly profits in the summer of 2017. Due to low barriers to In the beginning, many individuals had decided to try the adventure by setting up small mining operations, in order to capitalize on the enthusiasm aroused by digital assets.
But according to Susquehanna, the situation has changed considerably. The profitability of this equipment has since gradually decreased, and it would now be zero:
In a note sent Tuesday to its customers, the research firm notes that the situation was caused by a combination of factors.
She cites the widespread fall of crypto-markets – Ether has depreciated more than 85% since its historic record last January – but also the decline in the competitiveness of GPU miners face the efficiency of ASIC miners.
The course of Nvidia plunges
And it is Nvidia that seems particularly to bear the brunt of the decline in profitability of “GPU mining”.
The company had recorded a sharp rise in sales following the soaring Ether, which occurred during the year 2017. At the time, this runaway had allowed its action to soar.
But since the beginning of the year, while many mining pools have decided to close the door, the “small” miners have difficulties to make their investment profitable.
At the same time, the mastodon Bitmain launched its Antminer A3, which allows to mined Ether much more efficiently than with a GPU.
Despite the announcement of its withdrawal from crypto-markets, Nvidia continues to suffer, with a share down 16% over the last 30 days. If its chips are primarily for “gamers”, some of its sales seem to be still dependent on crypto-markets.
This is what Christopher Rolland said in the note received this week by Susquehanna’s clients:
“We estimate that revenue generated this quarter from GPUs sales related to cryptographic operations was very low. This is consistent with the company’s recent comments that it did not include any cryptocurrency contributions in its third quarter reports. During this period, the profitability of mining continued to decline, while Ether prices have fallen more than 70% since the beginning of the year.