Bitcoin, Cryptocurrency And Blockchain News

Good News for Gamers, Bad News for AMD? Bitmain Has Developed an ASIC Miner for Ethereum


Susquehanna International Group (SIG) have reported that Bitmain has created an Ethereum-compatible ASIC miner, which could see the demand for GPUs plummet. This would spell good news for gamers, who have been finding it incredibly difficult to get their hands on graphics cards, but bad news for the likes of Nvidia and AMD, who have enjoyed record profits of late due to the crypto rush.

What Effect Will This Have?

On the face of it, this could be massive news for the crypto industry. Application Specific Integrated Circuit (ASIC) chips are exactly that – application specific. This means that they are far more efficient than using a universal solution such as a GPU. However, not all the crypto big boys support ASIC mining. Just recently, Monero has promised emergency software updates to effectively render a new ASIC miner for the currency obsolete. If others follow suit, then GPUs will still be in high demand.

However, Nvidia and AMD will certainly be sweating over changes to the market. Indeed, Susquehanna has already reduced price targets for AMD shares to $7.50 from $13, and corresponding Nvidia shares to $200 from $215. Such a trend would be likely to continue if such a massive ASIC miner is rolled out across all Ethereum-based currencies. And while this will spell good news for gamers who have been complaining about their marginzilation in favor of the crypto industry, it would signify a massive drop in demand for the tech giants, and a subsequent loss of profit on 2017.

Susqquehanna’s statement read:

During our travels through Asia last week, we confirmed that Bitmain has already developed an ASIC [application-specific integrated circuit] for mining Ethereum, and is readying the supply chain for shipments in 2Q18,” analyst Christopher Rolland wrote in a note to clients Monday. “While Bitmain is likely to be the largest ASIC vendor (currently 70-80% of Bitcoin mining ASICs) and the first to market with this product, we have learned of at least three other companies working on Ethereum ASICs, all at various stages of development.

Image Credit: Deposit Photos