According to analyst Mitch Steeves, the growth of Ethereum rate causes the price of Nvidia. Steeves claims that higher prices for Ethereum increase the use of graphics processors Nvidia for mining. On Monday, the Nvidia stocks grew for 1.67 dollars or 0.8%, to $216.60.
Steeves, who informed about the Nvidia’s increase earnings, also said that the payoff period has reduced when the price increased. The growth of rate touched Ethereum, Monero, Zcash, and Bitcoin.
Supported by the record price achievements of Bitcoin, the overall amount of cryptocurrency market for the first time crossed the mark of 300 billion dollars last week. This makes the cumulative cryptocurrency capitalization higher than one of the Bank of America. Altcoin market has more or less picked up the fair wind of Bitcoin, letting some other cryptocurrencies reach their record highs.
Steeves reported that the Ethereum payoff period makes up around 5.6 months comparing to 9.4 months before the rise of the price, according to the resource Barron's. Such payoff shortenings facilitate the use of graphics processors for mining and can cause a further GPU sales growth.
He explained that increased cryptocurrency rate in general and Ethereum, in particular, was at least partially affected by institutional investing.
Steeves believes that this question has a lot of factors to consider, but investors are interested in the prices for cryptocurrencies in the first place. He expects even more institutional investments and investments from people with big capitals.
Steeves also mentioned that the Ethereum hard fork Byzantium, the first part of the bigger Metropolis update, also increased the trust in cryptocurrency.
Meanwhile, cryptocurrency technology continues to develop at a quick rate, and the progress can be noticed in Bitcoin as well, despite the cancellation of the hard fork Segwit2x.
The service for microtransaction within Bitcoin network, Lightning Network, is moving forward as well. According to Steeve’s words, the software development team works on the ring signatures for private transactions.
According to the analyst, it is hard to understand whether the increase of cryptocurrency rate continues long. He advised investors to track all cryptocurrencies, mined with the help of graphics processors, during the next one or two months.
This year’s 2000% growth of Ethereum has motivated miners to purchase the graphics processors AMD and Nvidia to receive cryptocurrency, which has caused a sharp increase in demand. According to the report on the corporate income, during the second quarter, Nvidia experienced a 150 million dollar’s growth due to the need, created by the cryptocurrency miners.
Mining increased the demand for GPU so much that some producers have started to release graphics cards especially designated for cryptocurrency mining, in particular Colorful, and even specific system boards, as Asus has done.
If Ethereum moves to Proof-of-Stake, powerful graphics processors won’t give any advantages to miners since the payments will be fulfilled differently. As a result, the demand will decrease. However, since the update, which is to be done by the second part of Metropolis, Constantinople, has been postponed to the end of 2018, the analyst Blayne Curtis assumes that both Nvidia and AMD will continue to earn on cryptocurrency rate for at least one year.
The analyst prefers Nvidia because of its domination in the sphere of artificial intelligence. And the launching of new processor Volta will likely to expand the company’s leadership in the market of graphics processors, preserving the higher level of productivity than AMD in the nearest future.