Friday, February 3, 2023

Nvidia CEO Says Cryptocurrency and Blockchain Technology Is Here to Stay

Nvidia CEO Says Cryptocurrency and Blockchain Technology Is Here to Stay

According to Nvidia CEO Jensen Huang, the crypto craze isn’t going to fizzle out anytime soon despite recent asset price slumps. The California-based technology company has become a key player in the cryptocurrency world, as it manufactures high-powered graphics processing units (GPUs) used for mining cryptocurrencies.

Also see: Bitcoin Cash Gives Devs More Freedom, Say Bitcoin Unlimited’s Andrew Stone and Peter Rizun

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Blockchain to Be a Fundamental New Form of Computing

Although Nvidia capitalized on the crypto wave last year that fueled GPU demand, Huang said he believes the mining business isn’t a “growth driver” for the company — but still very important, as it keeps GPU demands high. Nevertheless, Huang noted that cryptocurrencies and blockchain technology are here to stay and won’t fade away anytime soon.

Huang, in an interview with “Mad Money” host Jim Cramer, said:

“Cryptocurrency will be here. The ability for the world to have a very low-friction, low-cost way of exchanging value is going to be here for a long time. Blockchain’s going to be here for a long time and it’s going to be a fundamental new form of computing.”

Nvidia, which started as a chipmaker, is now a GPU specialist that has numerous products for different applications in various industries. However, Huang stated that its main growth drivers are professional graphics visualization, data centers, video games and self-driving car business.

As per Huang, cryptocurrency mining “just gave that extra bit of juice” to the company’s GPU business. He said the video game business draws in more revenue compared to crypto mining, and its multi-billion-dollar data center business doubles every year.

nvidia cards

Who Will Dominate the Crypto Mining Market – Bitmain, Nvidia or AMD?

Stock analysts have predicted that Nvidia and Advanced Micro Devices (AMD) shares will take a hit as the leading ASIC chip developer Bitmain introduces new mining chips to market.

In the interview, Huang also stated that Nvidia processors are the “perfect vessels” for mining cryptocurrencies. He said: “Our GPUs are the world’s largest installed base of distributed supercomputing. Our processor serves as the perfect processor to enable this supercomputing capability to be distributed. And that’s the reason why it’s used.”

Bitmain is leading supplier of chips that mine Bitcoin, making the Beijing-based technology company the king of the crypto mining business. For Bitmain, mining is its main business — however, for AMD and Nvidia it is more like a supplementary business.

BitKan Documentary Bitmain mining
Bitmain mining factory

The business rivalry between chipmakers indicates the market is competitive and crypto mania is still on — and that’s good news for holders experiencing angst over 2018’s bear market.

The booming crypto mining industry had even caused a shortage of GPUs, as miners generally purchase them in volume to construct mining rigs. At one point it even seemed like Nvidia was discouraging the use of their products in mining to preserve its reputation in the gaming market. For now, though, it seems chipmakers are still happy to enjoy the benefits of the growing cryptocurrency space.

Is the competition among GPU and ASIC makers good news for the cryptocurrency industry? Let’s hear your thoughts.

Images via Nvidia, Bitmain

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