The global market of graphics cards could go down 50 %, a impact for the sector of the mining of crypto-currencies ?

According to Joseph Morre, analyst at Morgan Stanley, the global market of graphics chips could fall by 50 % in 2018. Advanced Micro Devices (AMD) has been one of the companies that has benefited most from the spectacular development of crypto-currencies in the course of the last year. The manufacturer of graphics cards has experienced strong growth, while the global interest in the digital currency has increased.

This success is mainly due to the fact that the miners of crypto-currencies need chips powerful to install their platforms. AMD and other chip manufacturers have been facing a global shortage of graphics cards, while the demand increased. But Joseph Moore said that this growth could be coming to an end.

The decline in the market for graphics chips

So why the market of graphics cards would begin to decline, while the crypto-currencies, such as Bitcoin, are reaching new records ? This is not related to the interest of investors in the digital currency. In addition, Moore recognizes that the earnings of the miners of crypto-currencies that have purchased chips at AMD a few months ago have diminished.

According to reports from Barron’s, it becomes less and less profitable for miners to buy graphics chips from AMD. Mining is less profitable for digital currencies such as Ethereum, due to the way in which some crypto-currencies develop and evolve.

Mining becomes useless

There is also the question regarding the usefulness of mining. In the case of Ethereum, new techniques could be used. A true innovation, therefore, could make its appearance within the next few months in the field of crypto-currencies.

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If mining becomes less important, Moore thinks that she would be more AMD than its competitor, Nvidia, which displays a total of 800 million dollars in sales.

Source : Investopedia