According to The Wall Street Journal, although cryptocurrencies, represented by bitcoin, are gaining incredible popularity in the upcoming 2017, But chipmakers that have played key roles in the market are still on the sidelines.
In 2017, the popularity of cryptocurrency has thrilled everyone and spawned a whole new generation of 'miners.' These miners use high-end computers to get cryptocurrencies and get deals done and reap huge rewards.
How to get cryptocurrencies such as bitcoin and Ethereum through mining? In simple terms, it uses the power of image processors from companies such as NVIDIA and AMD, which are often referred to as GPUs that are typically found in high-end gaming PCs.
At first glance, cryptocurrency mining has created a huge market for NVIDIA and AMD. In the past two quarters, cryptocurrency mining has generated NVIDIA revenue of about $ 220 million, a figure that has advanced 5% of the company's total sales..
According to Lisa Su, CEO of AMD, mining companies have seen single-digit growth in the company's 23% sales growth this year, bringing about $ 500 million to AMD Dollar revenue.
However, neither company intends to raise money in the cryptocurrency mining market for the simple reason that: Cryptocurrency is too poorly stable, and a small change in current technology can have a huge impact on the economics of cryptocurrencies.
Joseph Moore, an analyst at Morgan Stanley, said that in the next year or two, some network upgrades, such as the overall block rewards for the Ethereum network, have dropped from five to three Ethernets, causing significant miners Influence.He even think, 2018 Ethereum mining graphics card sales may be reduced by 50%.
Nonetheless, there are still 26 cryptocurrencies currently worth more than $ 1 billion on the market, compared with Bitcoin and Ethereum, which were only worth more than a year ago. Mickey Stephane of RBC Capital (Mitch Steves) pointed out that many of these cryptocurrencies rely on GPU mining.
Although cryptocurrencies are rather poorly predictable, they are likely to continue to exist, which may be good news for those who want to reap the benefits of cryptocurrencies.
