Nvidia CEO has decided to stay away from mining

Most of the cryptocurrency miners use the Nvidia rigs. Nvidia’s net profits are rising each and every quarter due to the increasing demand for cryptocurrency mining rigs. However, Nvidia CEO clearly stated that mining is not the business of the company.

According to the CEO, Jensen Huang, the company is not involved in any type of Bitcoin mining. The company is involved in building hardware which it will continue to do. The cryptocurrency mining segment of the company is growing at a very rapid pace. Most of the analysts are positive of the company. The company has also received numerous earnings upgrade by the Wall Street analysts due to the increased demand for cryptocurrency rigs.

On the other hand, many gamers believe that owing to the rising demand for high-end CPUs, the gamers are getting impacted as well. The prize of gaming machines is increasing as well.

The company, however, is pretty clear that they will not venture into the cryptocurrency mining market. They will venture into the making of hardware as well as CPUs including the ones which are made for gaming as well as the ones which are made for a workstation. The company is also venturing into hardware which incorporates artificial intelligence.

This is actually good news for most of the cryptocurrency miners. With the hardware manufacturers also venturing into cryptocurrency mining, the cryptocurrency miners will not be able to compete with them. This will mean that cryptocurrency mining companies are not able to survive. This will be a big problem for them. As a result, this news from Nvidia is welcome news by most of the cryptocurrency mining companies.

Also, many countries all over the world are attracting such companies by offering lower electricity tariffs. This is the reason why Nvidia coming clean is actually good news for most of the cryptocurrency mining companies.

It remains to be seen whether the cryptocurrency mining industry flourishes at the same pace or not. With the prices of cryptocurrencies moving down, many experts are not sure whether the companies will be able to generate similar kind of profits are not. It remains to be seen whether they remain profitable even with the falling prices of cryptocurrencies or whether they switch to some other cryptocurrencies which are more profitable. In many cases, the margins of the cryptocurrency companies are already squeezed due to the fall in cryptocurrency prices.

David is passionate about learning cryptography, tech and the Internet. He has years of experience working at international investment projects. Growing interested in Blockchain and cryptocurrencies in late 2015, he joined Smartereum as an editor.

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