By Josiah Wilmoth
The CEO of Nvidia said that cryptocurrency isn’t going away anytime soon and that the world is beginning to come to terms with it.
Cryptocurrency Is ‘Not Going Away,’ Says Nvidia CEO
“Crypto is a real thing — it’s not going to go away.”
That’s not necessarily a unique statement. Cryptocurrency investors have been saying derivations of it for years, almost since Satoshi Nakamoto released the first vision of the Bitcoin software in 2009.
What’s notable, though, is that in this case the speaker, Jen-Hsun Huang, is not a cryptocurrency investor — he’s the chief executive of Nvidia, one of the world’s largest graphics cards manufacturers. Huang made this declaration during the company’s fourth-quarter earnings call on Thursday. Nvidia and AMD are leading sellers of chips used in crytpo mining operations.
Both AMD and Nvidia have seen their share prices soar along with cryptocurrency prices, as the chips they produce form a core component of cryptocurrency mining hardware built for certain cryptocurrencies, most notably Ethereum. Nvidia shares, for instance, have more than doubled in value over the past year, giving the company a $140 billion market cap.
‘The World Is Starting to Come to Terms’ with Cryptocurrency
Huang and other Nvidia executives later clarified that although demand from cryptocurrency miners has begun to comprise a “real part of our business,” its impact is small overall compared to demand from gamers and data center operators.
However, in a follow-up interview with Barron’s, Huang doubled down on his bullish outlook for cryptocurrency.
“This year, the world is starting to come to terms with the existence of crypto,” he concluded. “It’s based on blockchain, and it’s very secure and very low overhead. I think there’s clearly real utility. It’s a real phenomenon, and so everyone is coming to terms with it.”
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Featured Image from Thomson Reuters