U.S.-based graphics processing unit (GPU) manufacturer Nvidia stocks fell after announcing its third-quarter estimates, MarketWatch reported August 16. The firm’s revenue was affected by a decrease in crypto mining as digital currency markets slumped earlier this year.
Nvidia's unhappy situation shows that crypto market is bigger than the simple exchange trading. Many traditional business operators have joined blockchain economics in many different aspects. This imposes us a new question: how much is crypto economy big?
Take for example Nvidia. Crypto-specific product revenue was $18 million, about 1% of NVDIA total revenues.
So, if we consider that 1% of NVDIA is part of crypto economy, whe have to add to the cryptocurrency market cap 1% of NVDIA 156.266 billion market cap. This is a very interesting issue as we need to calculate the extended dimension of crypto-economy. What if we take on account all the services correlated with crypto-economy?
The company reported that crypto mining sales were significantly lower than expected in Q2, adding that it does not expect to make significant blockchain-related sales for the rest of the year. Colette Kress, chief financial officer at Nvidia, said:
Well, this doesn't sound so good for the future of the market. Clearly, a decrease in mining-related revenue can happen only if cryptocurrencyes value decreases. So, while part of this analysis is a prudency question, NVDIA too seems to be bearish on cryptocurrency market for Q3