How NVIDIA and AMD earn on the rise in cryptocurrency popularity
I present to Habr's readers my free translation (or even retelling) of the article This is Why Nvidia and AMD Continue to Ride the Cryptocurrency Mining Wave
Recently, shares of NVIDIA and AMD showed a very impressive growth (respectively, + 232% and + 183% per year), largely due to the demand from the miners of cryptocurrencies. Only this time, this is not about Bitcoin, but about one of his younger brothers - the ethereum, whose miners from Europe and China buy up graphic cards of the above-mentioned manufacturers in batches. So, according to analyst Mitch Steves of RBC Capital Markets, only in the last 11 days, the miners have bought cards for $ 100 million. (comment perev .: how accurate is the connection between sales of maps and mining, I can not judge).
It is a misconception among the uninitiated that miners use graphic cards mainly for mining Bitcoins, whereas for this purpose they have already switched to ASIC chips (Application-Specific Integrated Circuit) equipped with more powerful processors for several years. Today, the complexity of mining has increased so much that, with graphics processors, the power consumption would exceed the benefit of mining itself (note: probably, in countries with cheap electricity, graphics cards still pay off, but with a sufficiently large number of miners with ASIC lose in speed and earn nothing, since the reward is charged to the one who finishes the calculation first).
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Unlike bitcoin, mining of eterium consumes less energy and can be produced on graphics cards. And here AMD is in a better position than NVIDIA, since the ethereum algorithm is faster on their cards. In addition, AMD’s graphics card revenues are lower than those of NVIDIA, so an increase in demand will affect AMD’s profits more than those of a competitor.
In the light of these events, a natural question arises: is it worth investing in graphics card manufacturers? Most analysts do not count on consistently high demand from the miners. Cryptocurrency rates are subject to sharp jumps, and in case of a strong fall, spending on expensive cards can become unprofitable, which will very quickly affect the incomes of producers.
Recently, shares of NVIDIA and AMD showed a very impressive growth (respectively, + 232% and + 183% per year), largely due to the demand from the miners of cryptocurrencies. Only this time, this is not about Bitcoin, but about one of his younger brothers - the ethereum, whose miners from Europe and China buy up graphic cards of the above-mentioned manufacturers in batches. So, according to analyst Mitch Steves of RBC Capital Markets, only in the last 11 days, the miners have bought cards for $ 100 million. (comment perev .: how accurate is the connection between sales of maps and mining, I can not judge).
It is a misconception among the uninitiated that miners use graphic cards mainly for mining Bitcoins, whereas for this purpose they have already switched to ASIC chips (Application-Specific Integrated Circuit) equipped with more powerful processors for several years. Today, the complexity of mining has increased so much that, with graphics processors, the power consumption would exceed the benefit of mining itself (note: probably, in countries with cheap electricity, graphics cards still pay off, but with a sufficiently large number of miners with ASIC lose in speed and earn nothing, since the reward is charged to the one who finishes the calculation first).
')
Unlike bitcoin, mining of eterium consumes less energy and can be produced on graphics cards. And here AMD is in a better position than NVIDIA, since the ethereum algorithm is faster on their cards. In addition, AMD’s graphics card revenues are lower than those of NVIDIA, so an increase in demand will affect AMD’s profits more than those of a competitor.
In the light of these events, a natural question arises: is it worth investing in graphics card manufacturers? Most analysts do not count on consistently high demand from the miners. Cryptocurrency rates are subject to sharp jumps, and in case of a strong fall, spending on expensive cards can become unprofitable, which will very quickly affect the incomes of producers.
Source: https://habr.com/ru/post/331848/
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