Nvidia's boost from cryptocurrencies is slowing down

Nvidia is among the companies seeing a boost from the cryptocurrency craze, but, that boost has been slowing down recently.

In its second quarter earnings report, Nvidia said it saw a $150 million boost from miners buying its chips to help mine cryptocurrencies, like Ethereum. During that quarter, the speed of the network increased by about 55 terahashes per second, according to Mitch Steves, an analyst at RBC Capital Markets.

Steves says the network is not growing as fast this quarter, which would mean fewer miners are buying cards and the boost from cryptocurrency mining will not be as large for the company in the current quarter.

So far, in the third quarter, the network has only increased about 15 terahashes per second, which implies a boost of about $40 to $45 million for Nvidia. The network speed increases as more cards from Nvidia and other companies are added to the network. Miners have been scrambling to grab as many cards as possible in order to speed up the network, and win a bigger share of the reward given for payment verifications. The rapid demand means Nvidia's cards have been sold out in a lot of retailers recently.

Full story at http://read.bi/2wvlTzB

Source: Business Insider Nordic

 

 

 

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