Cryptocurrency: Why NVIDIA closes its cryptocurrency unit

  • And
  • +A

The cryptocurrency market has perked up – the price of Bitcoin grew by 3.66% per day and reached $6686 per coin. Altcoins also repeat the movement its leader, demonstrating the growth of quotations of and access to green space.
The most noticeable growth out of the top ten leading cryptocurrency according to Coinmarketcap version, demonstrates the project Stellar, which increased by 7.01 percent for the day and trading at $0,2307.
The market capitalization of cryptocurrency market has grown to $217 billion, adding a day to almost $10 billion and is also Growing domination of the Bitcoin market – the value of BTC Dominance is to 53.1%.
Despite the growth of Bitcoin, the news background is difficult to call positive, because it is not necessary to hope for an early rally, on the contrary, the market may again come under pressure in the near future. This particularly applies to altcoins, as investors first withdrawal from them.
Negative events for the market several. First, it is the news of another attack on a cryptocurrency exchange. This time under a sight of hackers was BitMEX. Yesterday the exchange was subjected to a DDos attack and was forced to leave technical work. While the theft of investor funds was not reported, however, many users have experienced trouble logging into their accounts on the platform.
This is sad news for the industry does not end there. The second event, which is unlikely to please captainvalor, was the news of the withdrawal from the market of the legendary NVIDIA. The reason for this is low profit, which prompted the world’s largest manufacturer of graphics cards and graphics processors to close their crypto-unit.
Because the profitability of mining plants decreased significantly, the company will cease to release them. Reason for the decline in profitability is several factors. First, this decline cryptocurrency market in price and the increase in difficulty of mining. Secondly, the reason for leaving NVIDIA out of the market is the fact that its GPUs were not originally designed for mining cryptocurrency, and substantially inferior in its characteristics ASIC miners that specially designed for cryptocurrency mining.
Given the lack of positive news, the most probable scenario of further developments envisage the correction of the cryptocurrency market altcoins and a reduction in the area of the lows of the last week.
Olga Prokhorova,
“International Financial Center”