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Cryptocurrency slump impacting DRAM market

Rohnak
Rohnak

It is a fact that a bullish trend in cryptocurrencies is also benefiting the hardware manufacturers. Cryptocurrency mining is becoming more and more mainstream. All over the world, there are corporates who are investing heavily in cryptocurrency mining. At the same point in time, this is benefiting the cryptocurrency hardware manufacturers as well.

However, from January of this year, the cryptocurrency market is consistently falling. It is also stagnant in the past couple of weeks as well. As a result, cryptocurrency mining is not that lucrative anymore. Most of the cryptocurrencies have fallen by around 50% from their peak levels. That is why the amount of profit which can be made in cryptocurrencies mining is limited. This is impacting the demand for DRAM. Moreover, the increasing prices of DRAM are also a dampener.

In turn, most of the hardware manufacturers are thinking of lowering the prices temporarily in order to shore up the demand. With the difficulty level increasing of most of the cryptocurrency mining operations, the hardware which is needed is even more. However, the fall in cryptocurrency prices is actually resulting in losses for many of the cryptocurrency mining operations. Moreover, the regulations are also increasing in most of the countries. As a result, the mining operations are getting disrupted.

It seems like the trend to reduce prices will actually benefit the cryptocurrency mining companies. They will be able to purchase the hardware at an affordable price. Once they are able to purchase hardware at an affordable price, their profit margin would go up and they, in turn, will be able to mine the cryptocurrencies more easily. This is the reason why any fall in DRAM prices will actually be a huge positive for the cryptocurrency industry. Also, it will increase the demand for cryptocurrency mining hardware by private individuals as well. As a result, they will be able to do brisk business once again.

As the circulation of cryptocurrencies increases, the need for mining will also increase. If in turn, the cost is on the lower side, it will become easier for US manufacturers as well as offshore manufacturers to produce the right kind of memory chipsets which will be helpful in cryptocurrency mining.

There is also an extra supply of DRAM in the market as companies had manufactured them anticipating a further increase in the cryptocurrency prices. Currently, the hardware prices are only lower by 6% as compared to a double-digit fall in demand for cryptocurrency mining hardware.

cryptoCrypto MiningDRAM

Rohnak

I have been following blockchain and crypto technology since its emergence.