The relationship between sales of electronic equipment for mining and the price of cryptocurrencies

By Simplify Crypto | Simplify Crypto | 2 Oct 2020

The global market has seen an increase in sales of computer components and high-capacity video cards.

The main uses of this more powerful equipment are to run more "heavy" business software, use in games and virtual reality, and for cryptocurrency mining, among others.

Asian markets and Russia are the main consumers of this equipment, and companies have increasingly invested heavily in this business apart from cryptocurrencies.

As well as, new sources of energy have helped in the growth of this market, such as the use of nuclear energy and energy from large mining companies (ore, even).

With more energy, it is possible to create electronic equipment with greater power.

However, what really shapes this market is the price of cryptocurrencies.

Asian miners are known for dumping Bitcoins on the market to lower the price of cryptocurrency and make it less interesting for mining competitors, which reduces equipment sales.

The biggest increases in the percentage of sales of mining equipment occurred in 2014 and 2017, years that preceded significant increases in BTC.

On the other hand, lower sales rates were recorded after 2016 halving, and between mid-2018 and early 2019, in that huge market depression.

The director of Marvel's Laptops, Tablets and Distribution Components Department, Andrei Kirichevsky, said that "there has been an increase in demand for video cards and mining equipment over the third quarter of last year."

However, that "there was a reduction in the number compared to the first and second quarters of this year".

Irina Shekhovtsova, a spokeswoman for manufacturer Nvidia, said that this year there has been a growth in sales of video cards in the market, but that this was due to the emergence of new games and work applications, which require new components for computers.

Market experts, on the other hand, believe that by the end of the year, the growth in sales of computer components and video cards aimed at mining should be stable or even drop.

If we compile this information we have that the electronic market for mining is relatively in decline, and a little is due to the uncertainties of the global financial markets in a pandemic.

If historically the amount of sales of electronic equipment for mining is correlated with the ups and downs of the cryptocurrency market, then we may be in a low moment right now.

The good thing is that historically, after this there has always been a bullish moment.

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Simplify Crypto
Simplify Crypto

Trying to help people to understand the crypto world from the basic concepts to the crypto projects purpose. My articles are publish in Publish0x and Hive

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