Nvidia faces Inventory Problems with Low Mining Demand

The company foretold a market slow down, but however it overestimated crypto mining demand
21 June 2018   1490

After a significant growth in 2017, the crypto market is afflicted from a massive slow down this year. This has not only influenced on the crypto investors but made a massive impact on other spheres as well. One such industry is the GPU manufacturing industry which demonstrated a huge rise in demand last year. 

Jen-Hsun Huangm, CEO of American chip manufacturing giant Nvidia has declared at Computex 2018 that the company will not come up with any new GPU for “a long time.” This decision was caused by the falling market requirement for Nvidia GPUs especially the GeForce 10 series cards that are very popular among the crypto miners and gamers. Also, one of its Asian OEM partners returned 300,000 units of GPUs to Nvidia that added fuel to the firm’s woes.

We’re working really hard to get GPU down to the marketplace for the gamers and we’re doing everything to advise retailers and system builders to serve the gamers. And so, we’re doing everything we can, but I think the most important thing is we just got to catching for supply.
Jen-Hsun Huangm
CEO, Nvidia

In 2017, Nvidia’s GeForce 10 GPU got big popularity especially among Ethereum and other altcoin miners. This finaly deprived the gamers of gaining their hands on these GPUs. Many reports also revealed that Nvidia has inflated prices of graphics cards in the wake of growing craze in crypto mining.

Strong demand in the cryptocurrency market exceeded our expectations. Cryptocurrency mining accounted for a higher percentage of revenue than the previous quarter. Keep in mind that’s very difficult for us to quantify down to the end customers’ view. Our main focus remains on our core market, as cryptocurrency will likely remain volatile.
Colette Kress
Executive Vice-President, Chief Financial Officer, NVIDIA

Nvidia also foresaw the impending downturn of the mining business and assumed that the decreasing market demand will pull the prices of their GPUs after Q3 2018.

Litecoin to Implement Reward Halving Successfully

Block reward was reduced from 25 LTC to 12.5 LTC on block 1,680,000
06 August 2019   139

Today, on August 5, the reward for the Litecoin block for miners was halved.

Halving happened on block 1,680,000, changing the block reward from 25 LTC to 12.5 LTC. The next halving will take place in four years - tentatively on August 2, 2023, as a result of which the block reward will decrease to 6.25 LTC, making digital silver even more scarce.

Litecoin Block Reward Halving Countdown
Litecoin Block Reward Halving Countdown

According to litecoinblockhalf, 75% of the total Litecoin supply has been mined so far. The current inflation rate of the coin is 4.26%, and after four years it should drop to 1.80%.

Many investors were sure that the market had long “digested” the positive expectations in connection with a decrease in cryptocurrency emissions and expected either a sideways price movement or even a decrease in the LTC rate.