GPU Producers Worry About the Potential Drop in Demand From Cryptocurrency Miners

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Reports concerning major manufacturers of graphics processing hardware expose the fear that the demand drops because of the possible regulation of the cryptocurrency market.

GPU producers sells products for miners and gamers. In 2017, Nvidia was forced to ensure gamers get hold of its GPUs because of the high demand for video cards used in mining rigs. In the beginning of 2018, the company told the retailers to limit the number of cards sold per consumer. Since miners habitually buy the latest GPUs in bulk, shortages were created on many markets. The company’s CEO, said that they were trying to fix the supply issues.

The main competitor of Nvidia, Advanced Micro Devices (AMD) mentioned that the decreasing demand from miners might affect their business in the current year. Last month, there was a strong demand from miners so AMD talked about planning to increase its graphic cards production. This week, the company mentioned that many factors will possibly affect the GPU market by decreasing the demand from cryptocurrency miners. Important factors that the company take into consideration are possible regulations and the continuous growth of the cryptocurrency market.

Predicting the future for GPU producers is very difficult because of the evolving markets of video games and cryptocurrency. However, new data shows that both companies have been profitable regarding sales in the mining industry. According to a recent report, more than 3 million graphics cards have been sold to cryptocurrency miners in 2017.

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