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Anger At Call For Congress To Place ‘Effective Ban’ On Bitcoin Mining

Bitcoin proponents have reacted angrily to what they warn is a fresh attempt to make US Congress ban public cryptocurrencies.


Murray: US Should Treat Miners Like Banks

As financial news outlet Business Telegraph reported, on September 3, an expert witness went before lawmakers to argue miners on blockchains such as Bitcoin’s should face full banking-style regulation. 

David Murray, vice president for product development and services at Financial Integrity Network, referred to miners as “virtual asset transaction validators.”

“At minimum, virtual asset transaction validators should be required to govern participation in their validation systems, with well-designed programs for vetting the issuers, exchangers, and custodians that they serve,” he testified.

Murray was speaking within the context of a debate which aimed to address international human trafficking. 

He singled out Bitcoin in particular as part of a financial phenomena group which allegedly exacerbate the problem. These, he said, should fall under the jurisdiction of the Bank Secrecy Act. 

A Bitcoin Ban ‘Couched As Regulating’

The idea of making miners identify network participants is impossible, critics said, as Bitcoin’s blockchain by design makes reliance on a centralized validator redundant.

Peter Van Valkenburgh, Director of Research at Coin Center, argued Murray was simply trying to ban the ‘unbannable.’ 

“It’s couched as regulating but what it would be is an effective ban on American persons or businesses using open blockchain networks because it would require them to use it on a permissioned basis,” he told CoinDesk following Murray’s testimony.

In a report for Coin Center in March, Van Valkenburgh took on the idea of applying the Bank Secrecy Act.

“Regulating cryptocurrency software developers and individual users of that software under the Bank Secrecy Act would be unconstitutional under the Fourth Amendment because it would be a warrantless search and seizure of information private to cryptocurrency users,” he summarized.

Echoes of the FATF

As Bitcoinist reported, efforts to force identity requirements on decentralized networks have already met with disbelief this year. In June, intergovernmental body the Financial Action Task Force (FATF) recommended member states do so for parties involved in cryptocurrency transactions worth over $1000. 

The idea, which over 200 countries should technically implement, sparked an immediate backlash. Authorities, sources said, still could not understand that a cryptocurrency transaction was not like a banking one. 

“The people trying to understand Bitcoin are not consulting with anyone who actually understands it and who can put it into a proper context,” Akin Fernandez, CEO of Bitcoin onboarding service Azteco, stated at the time.

What do you think about David Murray’s testimony? Let us know in the comments below!


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Bitcoin Hashrate Hits Record 83.5 TH/s While Price Trades Sideways

Bitcoin’s blockchain produced new historic records this week as the cryptocurrency’s technical health increasingly contradicts its lower price. 


Bitcoin Hashrate Hits 83 Quintillion

As data from monitoring resource and wallet provider Blockchain.com confirms, it was Bitcoin’s 00 hashrate leading the charge, hitting 83.5 quintillion hashes per second on August 29.

That number is BTC’s best achievement in its ten-year history, and the first time hashrate has surpassed 80 quintillion hashes per second.

Hashrate refers to the amount of computing power servicing the Bitcoin network. The more hashes per second involved, the more power miners are devoting to processing and validating transactions.

A higher network hashrate also means better security and often better decentralization of mining power across more users.

The metric has hit record levels continually in recent months, and the implied benefits make it a cause for celebration among BTC proponents.

On Friday, it was RT host and serial Bitcoin ‘permabull’ Max Keiser who took heart from the statistics, even as BTC/USD dropped 8% in a sudden loss of support.

Keiser additionally noted Bitcoin’s high share of the overall cryptocurrency market cap. That number hit 70% this week, according to some measures, its highest since March 2017.

“New (all-time high) for (Bitcoin) hashrate as alts die and players position themselves strategically ahead of BTC’s move back to 85% dominance,” Keiser summarized on Twitter.

BTC Booms At Altcoins’ Expense

As Bitcoinist noted, altcoins have indeed suffered as a result of Bitcoin’s rise. For Keiser, the future is also bleak – he claimed Bitcoin Cash and Bitcoin SV are “particularly vulnerable” to further loss of value.

Ethereum, meanwhile, is set for a halving – not of the block reward, but of price.

“ETH heading back to $90,” he finished, repeated a warning from earlier in the week about the largest altcoin.

Bitcoin’s price meanwhile has failed to match the strength of its network fundamentals. While not unprecedented, the schism nonetheless gives analysts cause for concern, with several advising traders to take precautionary measures with their holdings.

“I’m long BTC,” popular day trader FilbFilb told Twitter followers as Bitcoin hit $9600. Despite being up from local lows of $9350, this was not enough to restore sentiment.

“Live by the sword, die by the sword,” he added.

Earlier, Bitcoinist noted a theory that margin trading was responsible for sudden turbulence on Bitcoin markets. BTC/USD losing $500 in minutes is just the latest example of the phenomenon, which intersperses periods of sideways price action.


What do you think about BTC’s network performance versus price? Let us know in the comments below!


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Bitmain to Increase Hashrate By 50% With 600,000 New Mining Chips

Showing renewed optimism, Bitmain is increasing its investments in the crypto mining industry. Now, Bitmain is reportedly buying 600,000 new crypto mining chips. As a result of this new investment, the company expects to make over $1 billion in profits.


Bitmain to Increase its Capacity By 50% Hash rate

The battle to produce fast cryptocurrency mining gear is heating up. In this context, Chinese Bitcoin mining giant, Bitmain Technologies Ltd, is placing orders for new mining machines with high hash rate capacity.

In this connection, and according to a Chinese news outlet, “Recently, a supply chain person close to TSMC broke the news.” This source reported that Bitmain has recently placed new orders for 600,000 mining chips.

As Bitcoinist reported earlier, Taiwan Semiconductor Manufacturing Company (TSMC) is Bitmain’s chip supplying contractor. TSMC ranks as one of the most profitable chipmakers in the world.

Moreover, according to the same source, some of these chips include the latest 7nm model, with a single power of 50 Tera hashes per second. The recent Bitmain order also comprises 16nm model chips.

Therefore, within a few months, observers believe that Bitmain’s total network computing power could skyrocket by about 50%.

Company Hopes to Reach a Valuation of $12 Billion

Despite losses in the first quarter of 2019, which reached approximately $625 million, Bitmain remains optimistic about the strengthening of the mining industry. In effect, with this new investment, the company expects to hit a valuation of $12 billion.

Last February, Bitmain announced its next-generation 7nm ASIC chip, BM1397, which boasts improvements in performance and energy efficiency. These chips are designed to mine cryptocurrencies using the SHA256 algorithm for proof-of-work purposes, such as Bitcoin and Bitcoin Cash.

Moreover, the Antminer models come with enhanced hash rate capacity. Last April, the chipmaker announced the specifications for the latest 7nm Antminer 17 series. For example, the Antminer 17 Pro comes in two variants, a 53 TH/s and a 50 TH/s capacity models.

In addition, according to Bloomberg sources, Bitmain is working with specialists to prepare for a U.S. share sale that could occur as soon as the second half of 2019.

What do you think about Bitmain’s new investments in crypto mining? Let us know in the comments below!
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Blockstream Bitcoin Mining Services Aim To Enhance Decentralization

Blockstream yesterday announced a brace of new Bitcoin mining services, with an eye firmly on network decentralization. Blockstream Mining is a co-location and hosting service housed in two huge new data-centers, while Blockstream Pool is the world’s first mining pool to use the BetterHash protocol.


Enterprise-Class Bitcoin Mining Facility

The Blockstream Mining product is based around two massive data-centers in Quebec and the U.S. state of Georgia. Blockstream help with delivery logistics, installation, running, and maintenance of clients’ mining equipment. However, the clients control the devices remotely via a control panel giving real-time analytics.

The two data centers account for a combined 300 megawatts of electricity supply. If fully populated with the latest mining ASICs it could provide 7.5% of the total hash power of the Bitcoin network. The service is currently aimed at enterprise and institutional clients, but will in future open up to small businesses and individuals, further improving decentralization.

Blockstream started its mining operations in 2017, concerned that certain mining rig manufacturers were becoming a centralized force. This latest expansion of the service aims to counter this by providing a turnkey solution for co-location and hosting services.

Bitcoin Mining Is Better With BetterHash

Blockstream’s other prong in its quest for improved decentralization of Bitcoin mining is Blockstream Pool. This is claimed to be the world’s first Bitcoin mining pool which utilizes the BetterHash protocol.

The BetterHash protocol allows individual miners in the pool to determine which transactions to include into newly mined blocks. In the majority of mining pools, the pool operator controls which transactions get included. This can increase the risk of potential network attacks, for example, if the operator of a large pool decides to block certain transactions.

Handing this power back to the miners means that the Bitcoin network becomes more decentralized and censorship-resistant.

The Host With The Most

Some may question whether the Blockstream Mining service is promoting less decentralization rather than more. However, Blockstream CSO Samson Mow had this to say:

If anything, Blockstream Mining serves to decentralize the Bitcoin mining ecosystem… We’re self-mining with just a small portion of our available power, with the rest allocated to customers, and we have plans to make the hosting service available to smaller miners that otherwise would not be able to mine effectively.

Combined with the enhanced decentralization brought about through the BetterHash protocol, Blockstream certainly intends to do its bit for decentralization.

Outside of mining, Blockstream is also working hard to improve the Bitcoin network for everyone through its Liquid sidechain project.

Will Blockstream be successful in decentralizing Bitcoin mining? Let us know below! 


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Strong Bitcoin Miners Pave Way For Bullish Price Action: Willy Woo

Bitcoin Analyst/Economist, Willy Woo, is known for his stellar work on signaling models and tools to aid investment decisions. Well, now he has unleashed a new metric, the Bitcoin Difficulty Ribbon. 


How Difficult Can One Bitcoin Be?

The ‘ribbon’ consists of several simple moving averages of mining difficulty, on timescales from 9 to 200 days. As difficulty generally goes up, the 9-day moving average will tend to be higher than the 200-day moving average.

However, when the ribbon compresses or flips, this signals a slowdown in difficulty increase or even a decrease in difficulty. These are the best times to buy bitcoin, which would seem like a nice simple indicator to use. But why should it be so?

The Theory Behind The Metric

The visualization of mining difficulty examines the effect of mining on bitcoin’s price. Of the new coins being mined, some are sold off to cover miners production costs. This produces a downward pressure on bitcoin price.

Weaker miners must sell more of their mined coins in order to remain operational until this becomes unsustainable. At this point, the weak miners give up, reducing the overall hashing power and potentially causing a difficulty drop.

Only stronger miners are left, who don’t need to sell as many coins to cover costs, leaving room for more bullish price action.

Historically, this has happened at the end of bear markets. The lack of selling pressure from weaker miners (who have left the market) allows for price to stabilize and climb.

A similar effect can be seen during block reward halving events when a sudden drop in the coins mined occurs, yet costs remain the same.

Woo’s work builds on an April 2014 observation from Vinny Lingham, CEO of Civic.

Looking To The Future

One observation that Woo makes is that the current bull market (and the capitulation that preceded it) has more in common with that of 2012 than 2016.

In 2016 the ribbon compressed, but in both 2012 and 2019, the ribbon fully flipped, showing severe mining capitulation. This, in turn, led to vastly reduced selling pressure from miners, and a shorter accumulation period before price breakout.

The 2012 bull-run saw bitcoin price go from around $2.50 to an eventual top of over $1000. Which means (let me get my calculator)… past performance is no guarantee of future results. But it is interesting nonetheless.


What do you think of Willy Woo’s Bitcoin Difficulty Ribbon Model? Let us know in the comments below! 


Images via Shutterstock, Woobull.com, Twitter: @woonomic

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What Happens When All the Bitcoins Have Been Mined?

Over 83 percent of all bitcoins that will ever exist have already been minted. Over 99 percent will be mined by 2040. So, what happens when all the bitcoins have been mined?


Bitcoin Has a Finite Supply of 21 Million Bitcoins

One of the key features of Bitcoin is its hard-capped finite supply at 21 million bitcoins. This means it is entirely impossible to print out of thin air like fiat currency which makes it a deflationary currency by nature.

Bitcoin’s scarcity also drives its value. Yet, since Bitcoin is sustained by a network of miners who are compensated in block rewards, many people wonder what happens when all the bitcoins have been mined?

What will miners do once the 21 million hard-cap has been reached? How will they make their living and what will incentivize them to keep the network secure? The short answer is transaction fees.

What Happens When All the Bitcoins Have Been Mined?

Currently, when a new block is created, miners receive a block reward, which contains both newly minted bitcoins and transaction fees. This reward incentivizes miners to behave correctly and protect the network.

Once all the bitcoins have been mined, and miners have to rely on transaction fees alone, will that be enough to remain financially operational? If not, could that lead to a contraction of miners that would centralize and potentially collapse the network? Not according to research by Interchange and Awe and Wonder.

Looking at the below chart, you can see that by the year 2030, transaction fees start to represent a much higher part of the block reward. Once the fees make up over 50 percent of the block reward, miners transition to surviving on TX fees more than BTC.

crossover point, what happens when all the bitcoins have been mined

Will Transaction Fees Be Enough to Incentivize Miners?

The answer to that question is that no one is entirely sure how things will play out. However, there is sufficient evidence to suggest that yes, transaction fees will be enough to sustain miners and thus the Bitcoin network.

After all, as the value of Bitcoin rises, so do the fees. There are some concerns about whether rising fees will deter people from using Bitcoin. However, fees will still remain significantly lower than transferring fiat around the world. Just consider how much a fiat wire costs now, or the commission on purchasing a home for example. As Interchange points out:

Average closing costs on a home are 2% of the value, or $8,000. I’m sure individuals will be fine paying $50 in the future to send an immutable payment with an asset that can’t be easily taken away from them (unlike real estate which could be seized in a geopolitical quarrel at the snap of a finger).

Transaction Fees Also Gain Value Over Time

Since Bitcoin miners will be earning transaction fees over time, and BTC will gain value over time, so will the fees. This will make it economically viable for them to continue securing the network.

Interestingly, Alex Sunnarborg pointed out that only the Bitcoin and Ethereum blockchains have sufficient transaction fees in place to compensate miners in a non-inflationary environment. 

The change from relying on transaction fees for income over mined bitcoins is not going to happen overnight. There are also plenty of factors that may change between now and then, giving miners plenty of time to adjust to the new model and for the Bitcoin network to remain secure.

What do you think will have when all the bitcoins have been mined? Share your thoughts below!


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Why Moving to Texas Could Give Bitcoin Miners Maximum Profit

Flaring, a common practice of burning off natural gas that can’t be efficiently captured and stored has reportedly reached record levels in the state of Texas. Let’s look at why Bitcoin mining would be the perfect solution to capture this energy ‘waste’ and transform it into sound money. 


Texas ‘Energy Waste’ Rises 85%

According to a recent Bloomberg report, America’s Permian Basin, a large sedimentary basin located in the southwestern part of the country, is producing so much natural gas that at some point producers had to burn some of it off.

This process is referred to as “flaring” and it’s carried out when it makes more sense to burn the gas than to efficiently capture and store it. As oil production in the region surge, so does flaring.

The report also outlines that at the end of 2018, producers were burning off more than enough fuel to meet the entire residential demand of the whole state of Texas. Compared to last year, the amount of gas flared in the Permian has increased by about 85 percent.

A Problem in Need of a Solution…

Speaking on the matter was Scott Sheffield, Chief Executive Officer at Pioneer Natural Resources, who said:

It’s a black eye for the Permian Basin. […] The state, the pipeline companies and the producers — we all need to come together to figure out a way to stop the flaring.

The main challenge in front of the industry is that there are not enough pipelines to get the gas to the consumers. This is also why, at some point, producers were actually paying their customers to take the gas.

Besides pure financial issues, however, flaring is also undoubtedly causing a lot of environmental damage. The process is also producing serious amounts of carbon dioxide, which has reportedly contributed more than any other driver to climate change between 1750 and 2011.

texas oil gas bitcoin mining

…Which Already Exists

As Bitcoinist reported earlier in March, the solution that the state of Texas is desperately looking for might already be here: mining bitcoin.

A project, headed by oilman and bitcoin entrepreneur Stephen Barbour, has embarked on tackling the issues of excessive oil and gas production and the consequential flaring.

Barbour has installed a generator to a shipping container full of mining rigs and placed it at a remote oil field in Canada. Its sole purpose is to convert natural gas into electricity and to power the rigs. In order for the machines to operate 24/7, the unit is using about 400 cubic meters of natural gas per day.

Of course, the investment needed to buy and convert a regular shipping container into a facility of the kind can round up at $130,000 before factoring in the price of mining rigs.

Cryptocurrency Mining

However, apart from tackling the excessive waste of natural gas (which will save money), it would also result in highly profitable mining of bitcoin since the energy would not only be free, but producers may even pay miners to utilize it.

Barbour says bitcoin mining enables transforming energy that would otherwise go to waste into “financial freedom.”

What’s more, the mined bitcoin can then be used toward environmental conservation efforts, improve local infrastructure, or just about anything else.

Given that there are no other foreseeable solutions apart from the constant structuring of additional pipelines, this does sound like the perfect idea for Texas and bitcoin mining investors to look into.

Can Bitcoin mining help Texas capitalize on its ‘energy waste’? Let us know in the comments below!


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Why Bitcoin May Be The Greenest Technology Ever

The benefit for the planet may be incalculable by switching to a sound money like Bitcoin from inflationary ‘cheap’ money that incentivizes waste, incessant growth, and profligate consumption. 


New Technology Requires New Thinking

Today, most commentators attempt to define Bitcoin using analogies. They compare it to things they’re familiar with like stocks, commodities, or a payment service like PayPal. 

Just like the automobile was first described as a horseless carriage, Bitcoin today is presented largely as digital pseudo-money that’s not backed by any government.

Similarly, Bitcoin mining has been heavily criticized in the mainstream media. Headlines like Bitcoin uses more energy than *insert country* are not uncommon; and are regularly rehashed and republished.

Such findings, however, have been debunked time and time again. (Here’s a great article explaining Bitcoin’s energy use.) Meanwhile, similar concerns related to the banking system are deliberately ignored.

But Bitcoin is not like the inflationary fiat money that drives the global economy today. It possesses the properties of sound money. Unlike the dollar, it is deflationary, non double-spendable and un-counterfeitable. This makes it a completely different animal and requires some new thinking to understand its potential.

Inflation Incentivizes Profligate Consumption

Dollar hegemony, Keynesian thinking and inflation have now shaped economic policy for generations. Permanent Quantitative Easing (QE) and even negative interest rates are becoming the new normal. So it’s not surprising that something like Bitcoin is incomprehensible to most people today. 

Inflationary monetary policies force businesses into high time preference thinking. This means chasing quick quarterly profits, borrowing ‘cheap’ money, and doing whatever it takes to grow at all costs.

Today, most corporations hide behind a veneer of environmentalism to sell more products. Earth tone tote bags, less-plasticky plastic bottles, green logos, recycled materials etc. Anything to boost profit margins and ease over-consumption worries in the minds of the buyers. In result, if the product is ‘eco-friendly’ consumers feel less guilty about buying that new smartphone every year.

Cheap Money Doesn’t Care About the Future

The inflationary money phenomenon results in what is known as the Cantillon effect, where those closest to the money printers set the tone of economic activity.

Big businesses benefit, in particular, as they get special access to the central bank’s discount window. This ‘cheap money’ incentivizes borrowing and high time preference choices that tend to prioritize quantity over quality.

This also has a big impact on the time preferences of the population too. High inflation, or the reduction of purchasing power of money, means individuals will also have a high time preference.

This is especially evident in hyper-inflationary economies. People will rush to spend their money as soon possible knowing that it’ll be worthless the next day.

Starving Venezuelans Turn to Bitcoin Mining in Desperation

Bitcoin investor, Jimmy Song, explains the difference between a low time preference versus a high time preference individual. He says:

A low time preference person is willing to forego things now for something better later.

A bunch of high time preference people will not think very much about the future. Instead of saving for tomorrow, they’ll spend now, consume and not be very productive. They won’t be saving for tomorrow, starting businesses or building large scale projects as they all require a lot of planning.

Sound Money is Green Tech

So perhaps we should not be focusing on whether Bitcoin ‘wastes’ more or less electricity than today’s financial system. Instead, we should be asking whether sound money would change how we value our time, labor and our environment, particularly for future generations. 

“[Unrealized capital gains tax] and fiat money have a similar outcome. Distortion of time preference from investing in the future towards present consumption. Encouraging hedonistic activity and thus more environmental destruction, says Bitcoin Center NY co-founder, Austin E. Alexander.

In other words, Bitcoin could curb the high time preference, growth-focused economic policies of today that incentivize profligate consumption, environmental harm and yes…lots of wasted energy.

This is why the consequences of a Bitcoin standard may be “incalculable,” says economist and author of The Bitcoin Standard, Saifedean Ammous. He explains:

The benefits incurred from [switching from the horse to the automobile] are incalculable for us, primarily by not having to deal with horse manure as a permanent fixture of life. In a very similar way, the benefits of bitcoin lie in the horrors it would allow us to avoid by taking money production out of the hands of the state’s violent Keynesian barbarians.

Bitcoin, on the other hand, provides a nuetral, sound money alternative. Its digital scarcity as a result of its 21 million cap and counterfeit-proof nature, makes it deflationary.

Switching to a Bitcoin standard would certainly help lower individuals’ time preferences and yes, may ultimately be very, very good for the environment.

Do you agree that a sound money like Bitcoin may be good for the planet? Share your thoughts below!


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Why Did Bitmain’s Antpool ‘Stop Mining’ SegWit Blocks?

Antpool, the Bitcoin mining pool owned by hardware manufacturer Bitmain, has stopped mining Segregated Witness (‘SegWit’) blocks.


A Question Of ‘Charity’?

In a move which has sparked suspicion among cryptocurrency figures, data from the past seven days of block mining shows Bitmain mining blocks of under 1 megabyte – smaller than SegWit blocks mined by other pools.

“AntPool no longer includes SegWit txs in Bitcoin (BTC) blocks,” one Twitter account confirmed October 30.

If there are enough non-SW transactions to fill up Core’s 1MB base blocks and they pay higher fees than the SW transactions, why should (it) be charitable?

The curious statistics contrast with Bitmain’s desire to increase the Bitcoin block size limit as an alternative to the off-chain scaling options favored by SegWit proponents.

The apparent conflict was not lost on the industry, the research team of Hong Kong-based trading platform BitMEX also highlighting the sub-megabyte blocks on Twitter.

“Despite Bitmain’s strong support for larger blocks, Antpool has recently been producing smaller blocks (below 1MB), while other pools produce larger blocks,” staff commented.

Worst Of Both Worlds

Reactions to BitMEX included claims Bitmain, through excluding SegWit, could continue to use the highly-controversial Covert ASICBoost mining technique it had previously claimed was “not practical.”

Last month, the company began rolling out Overt ASICBoost for its Antminer hardware family, a move which similarly drew suspicion from commentators.

Bitmain 135 Watt Data Center

In a further nuance meanwhile, Blockstream’s Warren Togami noted that despite non-SegWit blocks ostensibly having a higher fee attached, the blocks Antpool had chosen to mine in fact contained less in fees than the SegWit blocks it was avoiding.

Bitmain continues to hold a monopoly on Bitcoin mining through control of Antpool and BTC.com, the latter regularly mining the most blocks on a given day.

The proportion of transactions using SegWit had continued to climb in recent months, reaching an all-time high of 48 percent in early October before dropping.

What do you think about Antpool’s mining behavior? Let us know in the comments below!


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Nvidia Calls Off Cryptocurrency Mining Production Amid Low Earnings

Graphics chip manufacturing giant Nvidia saw huge growth in late 2017 and throughout most of 2018 as demand for its high-end Graphics Processing Units (GPUs), used for cryptocurrency mining, skyrocketed. The recent bear market has caused demand for GPUs to dwindle, leaving Nvidia to readjust its strategy.


Nvidia In Its Heyday

It seems Nvidia is throwing in the towel on the development and production of its cryptocurrency mining focused graphics cards and chips.

Nvidia has seen some explosive growth over the last few years and is currently seeing a 68% increase in value in the past year alone (indicated below in yellow), although this week the stock price has slipped almost eight percent (indicated below in red).

Nvidia’s biggest rival, Advanced Micro Devices (AMD), also saw record highs recently, gaining more than 100% in just the past quarter.

Nvidia was especially successful riding the waves of the huge cryptocurrency boom of November and December, gaining an impressive 42% from November 2017 to its all-time high of $267 per share in June 2018 (indicated below in blue).

Demand for its highest-end GeForce series GPUs surged as the price of Bitcoin 00 shot from $5,800 to almost $20,000 in the span of 1 month — creating a buying frenzy from miners and resellers looking to cash in on the crypto-craze.

The recent market downturn, however, has left Nvidia with a lot of unexpected extra stock due to fading interest and market sentiment. Nvidia and AMD must be prepared to adapt their business models and plans to suit a prolonged cryptocurrency bear market.

Bloomberg writes in My Broadband:

Nvidia said it had expected about $100 million in sales of chips bought by currency miners in the fiscal second quarter. Instead, the total was $18 million in the period, and that revenue is likely to disappear entirely going forward.

Planning For The Future

Nvidia CEO Jensen Huang plans to trim cryptocurrency mining production out of the budget.

In a conference call yesterday, Huang spoke about moving down new avenues and focusing on Nvidia’s strengths for the remainder of the year.

“Our core platforms exceeded our expectations, even as crypto largely disappeared. We’re projecting no crypto mining going forward,” he said.

Soon, the heat from Clines setup became an issue. He describes the steps he took in order to mitigate the high-temperature conditions in his dorm room.

Although cryptocurrency mining helped give Nvidia a short-term boost in revenue and market value, the company cannot continue to keep up in competition with mining goliaths, like the Chinese-owned Bitmain. Bitmain produces and uses ASIC miners that are able to mine much more efficiently than the best Nvidia cards.

Nvidia will instead build upon their strengths, particularly in the computer gaming, artificial intelligence, and data processing sectors.

Graphics card junkies are on the edge of their seats for the upcoming Geforce 20 series chips, with new Turing chip architecture. First looks at the chips are claiming the top of the line Geforce RTX Titan can outperform Nvidia’s current top card, the 1080 Ti, by 50 percent.

Despite a small tumble this quarter, the future still seems bright for Nvidia.

What do you think about Nvidia’s exit from cryptocurrency mining production? Will the company still continue to gain value in 2018? Let us know your thoughts in the comments below!


Images courtesy of Tradingview, Shutterstock

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