Author: Kella Pacquiao, Philippines
NVIDIA is a popular choice for gamers and miners. Since most of the cryptocurrencies will be attained from a process commonly called as “mining,” miners need a graphics processor that can do multiple calculations fast and accurate.
That’s when NVIDIA comes in.
The demand for high-end laptops is steadily increasing as the prices in crypto coins soar.
This pushed the company to highly inflate its graphics processors suggested prices. This also causes for gamers to buy graphics cards harder.
In the long run, sales to miners are more volatile than to the gamers. The demand for buying graphics cards from miners is dependent on the cryptocurrency prices. Not to mention, there are mining chip companies that are making chips more efficiently for cryptocurrency mining.
Since then, the supply of graphics chips has stabilized and also lowers its prices.
NVIDIA has sustainable demand in gaming while mining didn’t
Fundamentally, gaming demand is sustainable because of these couple of reasons:
First, there is a huge market on graphical fidelity on games, and it is still getting bigger. Because of that, people seek more on the high-spec in terms of display resolutions and graphics horsepower.
The second one is the increasing need of playing games on personal computers. NVIDIA get sales from selling individual graphics card and also in their pre-built computers with its user’s preference in graphics card.
As long as games require powerful graphics processors, gaming demand won’t fall short.
Why does mining demand isn’t sustainable?
Mining itself is fickle and unpredictable which in return, affects the market. For instance, if digital coins became widespread, chip companies will increase its production of chips specifically designed for mining. This is a drawback for miners in buying NVIDIA graphic processors.
Graphics cards that are made by the chip companies are more power efficient and can withstand more accurate and make faster calculations.
Miners are the primary buyers for NVIDIA. If the case happens that the values of cryptocurrency drop, mining will be less profitable which will then leave a lower demand for graphics processors.
Sustainability isn’t the only thing to consider
There is a negative impact that can arise from the inflated prices of NVIDIA graphics cards.
If gamers face this, it will be harder to search for the preferred processors to buy. It has the possibility that gamers will gradually switch to different gaming devices such as PlayStation or Xbox.
In result, computer gaming’s popularity will be cut down.
Half of the NVIDIA’s revenue came from the sales of gaming graphics processors. Gaming in the personal computer allows the user to have the opportunity to boost up its specs without buying a new gaming console.
Cryptocurrency miners counter this possibility that endangers to harm the NVIDIA graphics processor market.
Photo credits: NVIDIA