The stock price of chipmaker Nvidia and the value of Bitcoin continue to skyrocket almost in sync. These two technology disruptors, in their respective fields, are propelling amazing technological and economic changes. Their significance is being clearly reflected in the financial markets, as the values of both NVDA and BTC reach all-time highs.
Bitcoin and Nvidia’s Impressive Price TrajectoriesNvidia products and Bitcoin seem to be interrelated. Both are key elements that are powering the world’s transition to the 4th Industrial Revolution.
“Technology is changing the nature of relationships between industries and creating a new range of challenges. For example, technology is now interconnected with retail, healthcare, and banking,” according to a PWC report.
In this connection, then, is there some degree of correlation between the price trajectories of Nvidia stock and Bitcoin?
Nvidia stock is hovering at its highest-ever stock value. As of writing, a share of Nvidia is over US$170, up from less than US$20 in 2014. As shown in the chart below, Nvidia’s stock price climbed significantly when Bitcoin miners started to order graphics cards specifically tailored for cryptocurrency mining, causing Nvidia shares to jump in value.
Figure 1 – NVDA Price – Courtesy of Google FinanceNo less impressive is Bitcoin’s price trajectory, which has been consistently and spectacularly ascending for the last eight months. And, on 1 September, Bitcoin’s value reached yet another all-time high, piercing the US$5,000 mark in the Asian markets.
Figure 2 Bitcoin Price- Courtesy of Google FinancThe paths of Silicon Valley’s Nvidia and Bitcoin intersected when Nvidia launched graphic cards specifically dedicated to cryptocurrency mining.
ASUS, the Taiwanese computer hardware and electronics consumer company announced launching the Nvidia based technology, such as ASUS Mining P106, recently. The advertisement reads, “ASUS Mining P106 is designed for coin mining with high-efficiency components – delivering maximum hash-rate production at minimum cost.”
Specifically, the demand for cryptocurrency mining products has caused Nvidia sales to rise 52%, representing $1.2 billion, Fortune reported on August 10, 2017.
Another chipmaker benefitting from the cryptocurrencies craze is Advanced Micro Devices Inc. (AMD).
The demand for mining cryptocurrencies has been so extraordinary that some Wall Street experts have started to fear that Nvidia’s price is now becoming too dependent on Bitcoin.
Read more: https://news.bitcoin.com/bitcoin-nvidia-price-soar-sync/
