Wall Street Analyst Claims Bitmain Developed An ASIC To Mine Ethereum

  • A Wall Street analyst recently claimed Bitmain developed an ASIC to mine Ethereum. He added that three other firms are developing ASICs for the cryptocurrency
  • This type of competition saw him alter his AMd and Nvidia stock price predictions

Wall Street firm Susquehanna recently reduced its price targets for leading GPU makers AMD and Nvidia, claiming they’ll now have to compete with mining hardware giant Bitmain when it comes to cryptocurrency mining, as the company developed Ethereum ASIC miners.

In a note sent to Susquehanna’s clients, analyst Christopher Rolland revealed the China-based hardware manufacturer, a market leader when it comes to Application Specific Integrated Circuit (ASIC) chips, is going to start shipping out Ethereum ASIC miners in the second quarter of this year.

According to CNBC, he said:

"During our travels through Asia last week, we confirmed that Bitmain has already developed an ASIC [application-specific integrated circuit] for mining Ethereum, and is readying the supply chain for shipments in 2Q18.”

Christopher Rolland

He further revealed that while Bitmain is the largest ASIC vendor, currently selling 70 to 80 percent of Bitcoin mining ASICs, and the first to market these chips, three other companies are working on Ethereum ASICs.

So far, Ethereum’s hashing algorithm Ethash has been ASIC-resistant, allowing miners to make a profit using general purpose GPU chips commonly used for gaming and looking for aliens. ASIC chips are extremely efficient at mining cryptocurrencies, but are useful for little else.

Rolland lowered his stock price targets for GPU makers Nvidia and AMD as he believes ASICs will hurt demand for these chips, which will in turn hurt their business. He estimates Ethereum mining-related sales account for 20 percent of AMD’s sales, and 10 percent of Nvidia’s revenue.

Even if miners stop buying GPUs to mine Ethereum, it’ll still be profitable to buy them to mine other cryptocurrencies. One example would be Monero (XMR), which recently went to “war” against ASICs through an emergency software update that “lightly changes the proof-of-work algorithm to prevent DoS attacks by ASICs.”

Nevertheless, Susquehanna reduced his price target for AMD’s shares from $13 to $7.5, and reduce his forecast for Nvidia from $215 to $200. Per the analyst, Nvidia has a “stronger and more durable gaming franchise which would could help it work through this potential Ethereum-related unwind.”

Last year, Bitmain reportedly made as much revenue as Nvidia. The company’s revenue, analysts estimate, is generated by selling ASICs. The company may be expanding by developing operations in the US

Max Keiser: Bitcoin Dominates Altcoins in Cryptocurrency Debate

  • Keiser Report host Max Keiser claims that bitcoin continues to dominate altcoins and provide more investor security.
  • Keiser predicted bitcoin's market dominance and hash rate to reach 99 percent within the next five years. 

Max Keiser, host of the Keiser Report, claims that bitcoin has no cryptocurrency rivals and that most altcoins fail to live up to the standard set by BTC. 

Speaking in an appearance on London Real, Keiser dismissed the possibility of a new crypto-asset emerging and eating into bitcoin’s market dominance. 

He said, 

There’s no coin out there that can do what Bitcoin doesn’t do already or will be able to do shortly. What you’re buying with Bitcoin is security.

Keiser continued, arguing that hard forks of bitcoin such as bitcoin cash and SV lack security compared to the original BTC.

The avid bitcoin supporter also referred to several altcoins as being “pure exit scams,” intentionally designed to manipulate investors. 

He explained, 

They have huge ‘pre-mines’ that the founders are selling or dumping and making a lot of money. A lot of people are losing money, and they have no use case. So like a Ripple or an Ether, even, is an exit scam. It’s to be avoided. Those are the top coins.

Keiser predicted that bitcoin’s market share and hash power, sitting at 65% and 85% respectively, will continue to rise relative to the market. He claimed that within five years bitcoin will account for 99% of all cryptocurrency hashing power and market capitalization. 

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