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Schiff Names Surprising Reason Why Nvidia’s Rise is Bearish for Bitcoin
Alex Dovbnja
Cryptocurrency Opponent Peter Schiff Highlights Bitcoin’s Alleged Lack of Usefulness in the Wake of Nvidia’s Rapid Rise
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Recently Peter Schiff has been the opponent of cryptocurrencies managed to find a reason why Nvidia’s astronomical rise is actually bearish for Bitcoin.
Schiff noted that every graphics processing unit (GPU) Nvidia makes contains gold. However, it contains zero sat.
The comparison was intended to highlight Bitcoin’s supposed lack of utility. Furthermore, Schiff stated that Bitcoin actually needs gold due to GPU mining:
“Bitcoin needs gold. Gold doesn’t need Bitcoin. Nothing needs Bitcoin,” he told her.
Gold is a crucial component of GPU microchips along with other metals such as copper. Despite the high cost of the yellow metal, Nvidia uses it for its conductive properties. It is worth noting that gold is widely considered one of the best conductors of electricity. Furthermore, gold is also much more resistant to corrosion than copper.
Prominent investor Stanley Druckenmiller has already bet on artificial intelligence and the gold mining sector, dumping traditional tech stocks.
Nvidia made history on Tuesday by becoming the world’s largest public company by market capitalization, overtaking Microsoft.
Nvidia is the main beneficiary of the ongoing artificial intelligence boom. The Santa Clara, California-based company reportedly accounts for about 80% of all AI chips in data centers.
Before the AI craze, Nvidia mainly focused on the gaming industry. In 2017, it also benefited from increased demand for GPUs during the cryptocurrency mining frenzy. However, the demand for cryptocurrency mining was short-lived for Nvidia.
With its current market capitalization of $3.34 trillion, Nvidia exceeds the GDP of all but five countries. Schiff predicts that only the US and China will be able to stay ahead of Nvidia in the near future.
This is not the first time that Schiff took aim at Bitcoin’s apparent lack of utility. In April, he said the flagship cryptocurrency offers only scarcity without utility.
About the author
Alex Dovbnja
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience covering everything related to the burgeoning industry, from price analysis to Blockchain disruption. Alex has authored more than 1,000 stories for U.Today, CryptoComes, and other fintech media. He is particularly interested in regulatory trends around the world that are shaping the future of digital assets; he can be contacted at alex.dovbnya@u.today.