NASDAQ Stock NVIDIA Stock: Cryptocurrencies Are Useless To Humanity According To NVIDIA CTO

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• NVIDIA suffers from weak gaming and crypto markets
• NVIDIA CTO: Crypto has no benefit to society
• Artificial intelligence makes much more sense than crypto

When mining Bitcoin – and until the long-awaited ETH merge in September 2022 also when mining Ethereum – the blocks anchored in the blockchain are verified by mainframe computers solving complicated number puzzles and their operators being rewarded with new coins for providing the computing power . Huge amounts of graphics cards are used in the miners’ systems – including many from NVIDIA.

Trouble with crypto miners

But although the chip manufacturer from Santa Clara, California, was able to sell thousands of graphics cards to miners, this development was viewed critically. This was due to the fact that mining has come into violent conflict with the core gaming business in recent years. Because of the strong demand on the part of the miners, the hardware for gamers was only available to a very limited extent and was also very expensive. The US company therefore even developed an update that was supposed to severely restrict mining, but this block did not prove to be a major obstacle for miners. The US group even introduced a special mining graphics card, so-called LHR GPUs, so that the other models remained for gamers, but this did not stop the miners from continuing to buy gaming graphics cards and thereby increasing prices to drive.

In the meantime, however, the situation has changed significantly and miners no longer empty the graphics card market. On the one hand, this is due to the fact that prices on the crypto market have fallen significantly, which means that mining is no longer so lucrative. On the other hand, on September 15, 2022, the Ethereum blockchain was made more efficient with an upgrade that replaced the previously used Proof-of-Work (PoW) algorithm with the Proof-of-Stake (PoS) method. This made graphics cards superfluous for the ETH miners and they are now even selling their used hardware cheaply.

Cryptocurrencies have nothing useful for society

Because the gaming business has also developed poorly and revenues have plummeted, NVIDIA is now focusing on artificial intelligence (AI). According to NVIDIA CEO Jensen Huang, the company is driving the “iPhone moment for AI,” reports futurezone. The NVIDIA processors would enable an artificial intelligence that could transform almost every industry.

In contrast, crypto is pointless, said Chief Technology Officer (CTO) Michael Kagan in an interview with the British newspaper The Guardian: “All this crypto stuff needs parallel processing and [NVIDIA] is best here, so people just programmed that for that purpose. They bought up a lot of tickets and eventually it collapsed because it doesn’t bring anything useful to society. But AI does.” The NVIDIA chief technology officer went on to say even more disparagingly about the crypto market: “I never thought of it as something that would bring any good to mankind. People do crazy things, but they buy your stuff and you sell them stuff. But you’re not adjusting the company to support these things,” Kagan said.

AI offers greater meaning

According to Kagan, it makes much more sense to use the processor power for artificial intelligence, especially those like the chatbot ChatGPT. Such text bots, which are easy for any user to use, would even make it possible for anyone to write small programs: “With ChatGPT, anyone can now create their own machine, their own program: You simply say what it should do and it does it. And if it doesn’t work out the way you want it, you tell it, ‘I want something else’.”

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