Over three million Graphics Processing Units (GPUs) have been sold to bitcoin and other cryptocurrency miners last year, Jon Peddie Research announced in its latest report, with total sales of video cards reaching $776 million. The market research firm does not expect prices to go down in the near future.
The study covers data from the top three producers of GPUs – AMD, Nvidia, and Intel. Recently, Advanced Micro Devices acknowledged shortages of its Radeon cards because of their use in mining applications.
AMD’s main competitor, Nvidia, also said the demand by miners had exceeded its expectations in the last quarter of 2017.
According to Jensen Huang, founder and chief executive officer of Nvidia, they achieve yet another record quarter as strong demand for cryptocurrency mining exceeded all expectations. “In a powerful sign of our progress, attendees at Nvidia’s GPU Technology Conferences reached 22,000, up tenfold in five years, as software developers working in AI, self-driving cars, and a broad range of other fields continued to discover the acceleration and money-saving benefits of our GPU computing platform.”
GPU Prices to Go Up This Year
According to the president of the market research company, “gaming has been and will continue to be the primary driver for GPU sales, augmented by the demand from cryptocurrency miners.” Dr. Jon Peddie said that he expects a decrease in that demand, as margins drop with increasing utilities costs, while the prices of GPU’s go up because of short supply. He also said that gamers can offset those costs by mining when not gaming, but prices will not drop in the near future.
Full Story: – Report: Crypto Miners Bought 3 Million GPUs Last Year
How profitable is Bitcoin Mining?
Very profitable it seems, as a secretive Chinese start-up called Bitmain dominates the Bitcoin “mining” industry land as reported by CNBC Is likely to make as much as chipmaker Nvidia did last year.
Estimates of gross margin of 75 percent and operating margin of 65 percent, analysts calculate that Bitmain made $3 billion to $4 billion in operating profit in 2017. It is estimated that Nvidia’s operating profit was $3 billion during the same period.
Full story: – Secret Chinese Bitcoin mine makes Billions
Read more: – How to Bitcoin #6 – Mining Bitcoin
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