While the world goes crazy for cryptocurrency, the planet’s leading chipmaker, Nvidia (NASDAQ: NVDA), is looking to revive its previously scrutinized crypto mining program, and this time it might just work.
The company’s new Cryptocurrency Mining Processor (CMP) chip will be used for mining Ether, the world’s second-largest cryptocurrency after Bitcoin.
Wait, what’s crypto mining?
The basic explanation of ‘mining’ is a process in which computers solve complicated math programs to help a specific cryptocurrency network run — in this case, Ethereum — in exchange for the digital coin that runs on that specific network.
And it’s notoriously difficult.
Step in Nvidia and its new semiconductor, which can provide a more efficient mining process. Nvidia is getting this news out just on time, with Ether hitting all-time highs of $1,914 yesterday. The move also comes in the midst of a global chip shortage, and during the announcement, the company explained how its gaming graphics cards have been improperly used in the past (albeit effectively) as Ether mining tools. But this latest product is meant specifically for just that and provides investors in this ever-growing industry with a reliable solution to a difficult problem.
More importantly for Nvidia investors, it looks like the start of a brand new and potentially massive revenue stream from what has become the world’s hottest asset trend. For better or worse, crypto looks like it’s here to stay, and the market is going to need solutions to aid in its massive growth.
With the global crypto market currently estimated to be worth roughly $1 trillion, Nvidia stands above its competitors as a solution to a major problem in the industry, and should it expand its CMP offering to other digital currencies, it could end up riding a massive first-mover wave.
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Editor at MyWallSt
Jamie is the Content Editor here at MyWallSt. His favorite stock is Apple, which is also the first stock he ever bought. Jamie is not only a big fan of its products, but he believes that the tech giant has a whole lot more to give the world, and hasn't even scraped the surface of its potential.