NVIDIA Earnings Sign Death Knell For Bitcoin Farming

NVIDIA Q2 earnings today reported the complete wipe-out of expected earnings from cryptocurrency-specific products in the future. This comes after this Q2's expected earnings in crypto hardware were $100m for the company, but turned out to be just $18m. As NVIDIA's statement suggests, "Whereas we had previously anticipated cryptocurrency to be meaningful for the year, we are now projecting no contributions going forward."

If you'll take a peek at this chart from NVIDIA for revenue growth contribution year-over-year, you'll find one segment to be particularly juicy. The chart shows the segment containing OEM, IP, and Crypto to be down this quarter. That's the only segment here that's down for NVIDIA – the ONLY ONE of their 5 separate segments here.

This is not good news for one part of the cryptocurrency universe: consumer mining. This could well have a domino effect on the rest of the different elements that make up the cryptocurrency market. But for now it means only that your everyday average consumer didn't buy a whole lot of GPUs for cryptocurrency mining this last quarter.

Look at the Q1 part of this chart, too. You'll see revenue growth in that one gray sector up more than it's ever been up year-over-year before, as far back as this chart maps. That's due MOSTLY to cryptocurrency-specific hardware. Almost as if NVIDIA expected to sell more hardware than they could produce, but instead produced more hardware than they ended up selling – for cryptocurrency-related stuff, specifically.

Watch the price of Bitcoin the rest of the day if you're not already doing so. I'm not in a position to predict the market, but this can't possibly be a good sign for the value of Bitcoin in the very immediate future.

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