According to the CEO of Nvidia, cryptocurrency and blockchain technology are very much hear to stay. This is refreshing news, for what can only be described as a dismal year for them so far.
His viewpoint was in a direct response to concerns about the company’s price growth being completely unsustainable. He 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…I expect blockchain, I expect cryptocurrency to be an important driver for GPUs.”
In just two years, Nvidia stock is up by a huge 560%, and has been highly successful in these couple of years. Huang believes that gaming, data centres, professional graphics and the autonomous market are the biggest growth drivers, rather than cryptocurrencies.
Towards the end of last year, revenue from mining-related products fell by $80 million; however, Nvidia’s revenue from these mining related products were on the up again before the year was out. Nvidia have been involved in GPU technology for a number of years, but it is now developing supercomputers, which are ideal for artificial intelligence researchers. But, the processing technology of the GPU’s also makes them popular with cryptocurrency miners and blockchain operators – to the point that there is now a market shortage!
Speaking of this demand, Huang said;
“We’re sold out of many of our high-end SKUs, and so it’s a real challenge keeping [graphic cards] in the marketplace for games…At the highest level the way to think about that is because of the philosophy of cryptocurrency – which is really about taking advantage of distributed high-performance computing – there are supercomputers in the hands of almost everybody in the world so that no singular force or entity that can control the currency.”
They have also humbly admitted that of all the problems to have, a roaring success that they are struggling to keep up with the demand is not a bad one to have!
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