Drastic decline in sales at manufacturers of mining hardware

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According to a report by the news portal Digitimes, the sale of mining hardware is in sharp decline. Various manufacturers of GPU components are therefore considering switching back to the gaming market. Otherwise, the decline in sales is unstoppable, they say.

Digitimes reports new insider information. Accordingly, it should have come to a strong decline in sales between April 2017 and March this year. In addition to the Chinese manufacturers of mining hardware such as Bitmain are also affected by the crisis, for example, the producers Asustek, Gigabyte Technology, Micro-Star International (MSI) and TUL, all of which are located in Taiwan.

Mining hardware under pressure for prohibition and increasing regulation

The reason given for the decline in sales is the ban on cryptocurrency trading in China and the increasing regulation of online trading venues in the Far East. In South Korea and Japan, various shops had to close because they could not meet the government’s requirements for securing the online credit of their customers for cost reasons. Also, it should have come in the meantime for lack of profitability already to the closure of various small mining farms. Although medium to large mining providers can hold. But these have been lately less willing to invest money in new hardware.

Supposedly even leading employees of the chip providers Nvidia and Intel have speculated that the sales in the mining sector in the second half of 2018 would subside. Taiwanese graphics processor (GPU) manufacturers report that their inventory levels have risen dramatically due to a lack of finished component sales. This led to a drop in prices of the just-produced hardware. Several GPU suppliers may be forced to turn to the gaming market instead of the crypto to offset lost revenue. Regardless of their own budget, gamers are prepared to invest large sums in powerful graphics cards. And that readiness was lacking in the last 12 months in the crypto sector.

Bitmain, Canaan & Co .: Artificial intelligence instead of crypto-mining?

Of course, the suppliers of finished mining solutions do not have this option. Bitmain co-founder Jihan Wu told Fortune magazine that they want to invest heavily in artificial intelligence (AI) over the next few years. In the future, Bitmain wants to bring several of its own AI products to the market. This would not only create another mainstay for the leading Chinese manufacturer. One would increasingly make oneself independent of the changing trends of cryptocurrencies.

Canaan Inc., the second largest ASIC manufacturer in the world, is also looking to benefit from KI products. The prospectus for the planned IPO of Canaan is riddled with evidence that the company wants to produce and market its own AI applications in the future.

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