Impact Crypto Mining “Hard To Determine” & Ethereum 2.0 Could Solve Shortage » Crypto Insiders

Nvidia has reached a record revenue in the first quarter of 2021. The huge video card maker announced this on May 26 through a press release. Nividia reports that sales have increased by a whopping 84% to a record $5.66 billion. Demand for its popular video cards has more than doubled. A 106% year-over-year growth yielded $2.76 billion in sales.

Nividia claims that this growth is mainly coming from the video game sector. Cryptocurrency-miners would only be responsible for $155 million from the sale of the graphics processing units (GPUs). Still, the company says that demand among crypto miners is having an impact, but it’s difficult to estimate how big the impact will be. There is currently a huge shortage of video cards on the market and if you do find one, they sell for exorbitant prices.

Earlier this year, Nvidia implemented a so-called hash rate limiter on its latest range of video cards to make it less attractive for crypto mining. Nvidia is also going to launch special ‘crypto-mining chips’ (CMP) to tackle this ‘problem’. The chipmaker was sued in 2018 for allegedly not being honest about the amount of revenue it made from selling video cards to crypto miners. Nvidia eventually won that case.

Today a lot of GPU mining is done on Ethereum (ETH). Nvidia reports that once Ethereum switches from a proof-of-work (PoW) to a proof-of-stake (PoS) network demand for GPUs among miners will fall.

“Demand for and use of cryptocurrency GPUs has fluctuated in the past and will likely continue to change rapidly. Volatility in the cryptocurrency market, including changes in the prices of cryptocurrencies, can affect demand for our products and our ability to estimate demand for our products.

Changes to cryptocurrency standards and processes, including, but not limited to, the pending Ethereum 2.0, could also lead to increased resale of our GPUs and reduce demand for our new GPUs.”

Nvidia may be making another big announcement at the end of this month:

Get Ready. ???? pic.twitter.com/VuDCcKXrry

– NVIDIA GeForce (@NVIDIAGeForce) May 26, 2021

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