Chinese Mining Company Threatens Nvidia & AMD With New ETH Chips

Chinese Mining Company Threatens Nvidia & AMD With New ETH Chips

As it is known, miners utilize graphics cards for producing cyber assets, which they can later vend or “hodl.” Usually, these cards are based on chips, manufactured by such giants as Nvidia and AMD.

However, now both of these companies are threatened as the cagey Chinese-headquartered mining entity for ethereum announced a novel chip for crypto-producers.

A New Technological Threat

On April 3, a mining company Bitmain unveiled its particularized cyber-coins mining system for ethereum. This system, some analysts forecasted, according to CNBC, could damage the inquiry for graphics cards.

"We are pleased to announce the Antminer E3, world's most powerful and efficient EtHash ASIC miner,” the company announced on Twitter.

The following criteria can characterize this novel chip:

  • the ordering limit of one miner for one user
  • limited stock
  • not available in China

The company also notified that it is going to deliver ethereum mining equipment for $800 per unit in mid t late July.

It is noteworthy that cyber-coin ETH has skyrocketed by over 800% within the past year, as per Coinbase.

The Company Is Dangerous

Bitmain is known in the crypto-ecosystem for its particularized ASIC chips. They are known to be more effective when it comes to mining than those, produced by Nvidia or AMD.

According to Bernstein experts, there is a high likelihood that this secretive China-headquartered company has gathered as much earning as Nvidia in 2017. They also assume that the significant part of Bitmain’s income is made up of vending mining systems by its chips.

As CNBC reports, now Wall Street is worried that Bitmain will prevail in the niche of ethereum mining.

And the consequences can be already seen. In particular, global trading tech company Susquehanna has already reduced its price targets for Nvidia and AMD shares, referring to the upcoming rivalry from the Chinese company in the ETH niche.

Image Source: Twitter