Collapsing Bitcoin prices have led to plunging sales of high-end graphics cards used for cryptocurrency mining.
(CCM) — The crash in the value of Bitcoin since the beginning of 2018 has led to demand for graphics cards to plunge by 40%, according to a Digitimes report.
Cryptocurrency mining operations have been huge buyers of graphics cards over the past year, leading to global shortages and increased prices.
"Channel distributors and larger mining farm operators have cut orders with makers of mining graphics cards and mining motherboards or asked them to suspend shipments due to the crypto mining craze waning abruptly from the beginning of April," a source said in the report.
The mining sales slowdown is good news for gamers and other buyers of computers with high end graphics cards because prices for the cards are likely to fall quickly over the summer.
But these price cuts could prove to be short lived, because many commentators expect Bitcoin and other cryptocurrencies to rebound later in the year, according to the report, leading to further shortages and price rises.
Many Taiwanese graphics card makers such as Gigabyte and MSI saw their shipments, revenues, and earnings per share hit new peaks in 2017 and the first quarter of 2018 thanks to the cryptocurrency mining bubble.
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