Are graphics card manufacturers going to fail? Mining is risky, so be careful while you can

What comes to my mind is a large machine similar to an excavator. The popularity of Bitcoin in recent years has given mining machines another meaning - special equipment used to calculate Bitcoin and other cryptocurrencies. As more and more people know and understand Bitcoin, more and more people participate in mining. Following the mechanism of Bitcoin mining, the difficulty has increased a lot compared to the initial one, and the output of the same computer per unit time has become less and less. Finally, graphics cards have entered the stage of mining machines.

However, the price of Bitcoin has plummeted in recent months, even breaking through $5,900 yesterday. Obviously, the risk of mining for miners is getting bigger and bigger. Currently, the cost of generating Bitcoin with a GPU mining machine has reached $6,000. Then the second-hand market will be flooded with mining GPUs, which will put downward pressure on prices and leave manufacturers with a large amount of inventory that cannot be moved. Are we going to give up mining from now on? Are GPU manufacturers going to be out of business? Mining is risky, so be careful.

But mining is always risky, and the roller coaster-like rise and fall of these virtual currencies is also irritating the nerves of many investors. However, everyone's enthusiasm for mining will not be extinguished in a short time. Although Bitcoin has reached the point where it is difficult to deduct a coin, other currencies such as Ethereum and ZEC are still mainly mined with graphics cards. The consequence of this is that miners have extended their "magic claws" to the ordinary consumer market, directly forcing another group of people in the virtual world into a "desperate situation."

Of course, the scope of these companies' business extends far beyond mining. In addition to the gaming industry, applications of GPU chips such as artificial intelligence and machine learning have also made significant progress. And ultimately, these graphics card manufacturers seem to have two choices when it comes to getting involved in the cryptocurrency industry. Regardless, with all this in mind, and with the graphics card mining industry expected to have another bumper year, it is clear that cryptocurrency mining has completely changed the production and distribution of graphics cards.