Nvidia's mining revenue continues to shrink. One chart tells you whether graphics card mining is still profitable?

According to a CNBC report on November 13, Susquehanna's analysis estimates that the profit of mining Ethereum with graphics card equipment has dropped from $150 last summer to around $0 in November this year, and the profit is basically declining month by month. The cryptocurrency-related sales of US GPU manufacturer Nvidia will also continue to decline.

(Image source: flickr.com)

Last year, some savvy cryptocurrency users discovered that mining cryptocurrencies using high-powered computers in basements or dorm rooms and then reselling the crypto assets was a profitable sideline.

However, if you still use graphics card equipment to mine Ethereum today, the profit is far less than before. Susquehanna's analysis estimates that the profit has dropped from $150 last summer to around $0 in November this year, and the profit is basically declining month by month.

(Image source: cnbc.com)

In cryptocurrency mining, equipment runs 24 hours a day, competing with other computers around the world to solve complex math problems. The first computer or computers to solve the problem are awarded a fixed amount of Bitcoin or Ethereum.

Ethereum hashrate is dropping significantly today. A higher hashrate is better for miners because it increases the probability of finding the next block and thus getting rewarded with new cryptocurrency.

CoinDesk data shows that the price of Ethereum has fallen by more than 70% this year, with today's price around $210.

The combination of these factors has made it “no longer profitable” to mine Ethereum using GPUs, Nvidia’s flagship graphics card, Susquehanna analyst Christopher Rolland said in a note to clients on Tuesday.

Nvidia's Q3 earnings were strong, but crypto-related GPU sales are still on a downward trend

According to Cointelegraph, experts from the analysis company Trefis recently predicted that the sales of graphics processing units (GPUs) of US GPU manufacturer Nvidia will increase by the end of the third quarter of this year. Trefis pointed out that although overall GPU sales will rise, cryptocurrency-related sales will maintain a downward trend, and revenue will be mainly driven by gaming GPUs.

Nvidia's mining revenue is declining. Analyst Christopher Rolland said that Nvidia's cryptocurrency-related revenue fell by about $100 million from the previous quarter. He expects that the company will release its Q3 report on Thursday, and the related revenue "may be close to zero." Christopher Rolland said:

“Management previously agreed that revenue from crypto-related GPU sales should be minimal this quarter. Mining profitability continues to decline as the price of Ethereum has fallen more than 70% since the beginning of 2018.”

In May, Nvidia announced a successful first quarter of 2018, thanks in part to cryptocurrency-related sales, which accounted for 10% of total revenue. Despite the previous good news, the company reported in August that its sales revenue had seen a "material decline" due to a drop in demand for graphics cards from cryptocurrency miners.