Asus recently announced a partnership with a blockchain startup Quantum Cloud. The goal of the partnership is a build a cloud-based cryptocurrency mining platform in a bid to promote the concept of giving incentives to gamers when they donate their GPU cycles. On its GPU product page, Asus explained:
“Quantum Cloud is a secure and simple service that allows users to easily earn extra cash when they donate their GPU cycles. Even if the app’s user interface is straight forward, it allows users to run cloud-based applications and make money in the process.”
Any incentive a user gets will be transferred automatically to their PayPal account. The platform is going to keep the personal data of users private as no data will be stored online. This platform is great and it is going to engage more people in the market. However, this isn’t the best time to debut such a product. The Cryptocurrency Market is currently at a low point. Making mining easier and investing new ways to tap into GPU cycles would have been a great idea last year. Doing this at the end of a bloody year for cryptocurrencies isn’t such a great idea.
Why This Move By Asus Isn’t Such A Good Idea
In August, Wes reported that almost all cryptocurrencies fell by at least 90% within a six month period. A typical example is the third largest cryptocurrency per market capitalization, ETH. Ethereum (ETH), sold for as high as $1,4000 at the beginning of the year. During the bloodbath last two weeks, it fell as low as $113 losing its place as the second largest cryptocurrency per market capitalization to XRP.
Bitcoin, the first largest cryptocurrency per market capitalization, fell as low as $3300 almost reaching the $3000 mark during this same period. This shows that the cryptocurrency fell by more than 75% from its all time high of $19,500. Even if it is back above $4000, this is the lowest the cryptocurrency has traded since September last year.
Since Bitcoin is mined with ASIC hardware more than with GPUs these days, Asus’ plan is still not a good thing for the industry. However, most people just convert other cryptocurrencies to Bitcoins when they have a need for it. This, and the price tumble are the two main reasons why the GPU sales are going down. About the issue, Nvidia posted:
“Revenue gotten from gaming was not as high as expected during the last quarter of the year. Things like excess channel inventory of Pascal products have impacted the market.”
Even if Nvidia expects that the market will rebound soon, it’s CEO, Jensen Huang said that the cryptocurrency market is currently having a hangover. In his words:
“This is a crypto-hangover and if there is anything I know about hangovers, it’s that consuming more doesn’t solve it. This is exactly what Quantum Cloud and Asus are doing”.
Users who want to enjoy the incentives can head to Quantum’s website and download the installer. You can generate up to 20,009 Quantum Dots daily from playing a game. If you do, you’ll get $10. When you add the cost of power, however, you may not benefit much from the incentive.