In our latest article Cryptocurrency News February 2018 we discussed the success of Ethereum in the beginning of the year, reasons for the recent price increase in GPUs, and governments’ approach for cryptocurrency trades.
The final quarter of 2017 was a huge success for almost all cryptocurrencies. Nevertheless, in the beginning of 2018 Bitcoin had a dramatic drop, causing a stress in the whole market. Several alternative coins, like Ethereum, survived the instability of the market. There are different theories going on about why these alternative coins were not impacted as much as Bitcoin. Beyond any doubt, some portion of the small investors who sold their Bitcoins as soon as the price started to decrease, carried their investments to these alternative coins. It is uncertain whether this trend will carry on but miners can make wise investments to increase their profit.
Cryptocurrency miners are well aware of the price increase in the NVidia and AMD graphics processing units (GPUs) in the last couple months. Looks like this trend also had an influence on cryptocurrency miners to invest in alternative coins. For instance, mining Ethereum is known to be more profitable compared to Bitcoin. In fact, the profitability of the mining Ethereum is still so high despite the small price drops. As a result, GPU choices of these miners had a huge impact on NVidia and AMD prices.
The approach of big countries towards cryptocurrency trade is a hot topic. This does not necessarily mean policies of countries will impact the prices of coins. In the beginning of this month, it was reported that China started to block access to major cryptocurrency trade markets. The reason for this ban was to prevent the “financial risks”. On the other hand, in the last couple months regulations of the United States usually aimed to make cryptocurrency industry safer instead of restricting it. Surely, in 2018 we will see how these different approaches will impact the market.