Cryptocurrency detractor Peter Schiff recently administered to find a reason why Nvidia’s astronomical rise is actually bearish for Bitcoin.
Cryptocurrency detractor Peter Schiff recently administered to find a reason why Nvidia’s astronomical rise is actually bearish for Bitcoin.
Schiff has noted that every graphics processing unit (GPU) produced by Nvidia contains some gold. However, it does not contain sats.
The comparison was intended to highlight Bitcoin’s supposed lack of usefulness. Additionally, Schiff said that Bitcoin actually needs gold because of GPU mining:
“Bitcoin needs gold. Gold does not need Bitcoin. Nothing needs Bitcoin,” he said.
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 due to its conductive properties. It is worth noting that gold is widely considered to be one of the best conductors of electricity. Additionally, gold is also much more resistant to corrosion than copper.
Alex DovbnyaProminent investor Stanley Druckenmiller has already bet on artificial intelligence and the gold mining sector, while dumping traditional technology stocks.
On Tuesday, Nvidia made history by becoming the world’s largest public company by market capitalization, surpassing Microsoft.
Nvidia is the main beneficiary of the current AI boom. The Santa Clara, California-based company reportedly accounts for about 80% of all AI chips in data centers.
Alex DovbnyaBefore the AI craze, Nvidia was mainly focused on the gaming sector. In 2017, it also benefited from increased demand for GPUs during the cryptocurrency mining frenzy. However, the demand for crypto 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 manage to stay above Nvidia in the near future.
This is it’s not the first time that Schiff has criticized Bitcoin’s apparent lack of usefulness. In April, he said that the flagship cryptocurrency only offers scarcity without utility.
