Ethereum`s Price Hike Will Boost Nvidia Sales

Ethereum`s Price Hike Will Boost Nvidia Sales

Ethereum`s price hikes will increase the value of Nvidia. Analyst Mitch Steeves from REB Capital says the higher prices of Ethereum will boost Nvidia`s value.

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Ethereum`s price hikes will increase the value of Nvidia, as said by analyst Mitch Steeves, REB Capital. According to Steeves, the higher prices of Ethereum will boost the value and use of Nvidia GPUs for the mining. Nvidia shares were increased by $1.67, or 0.8%, at $216.60 on Monday.

As said by Steeves, cryptocurrency payback period has seen a major change with the rise of the price. It has fallen with the increase of prices that include Bitcoin, Zcash, Monero, and Ethereum.

For the first time, the cryptocurrency market has seen $300 billion thresholds last week crossing all the records. It made the combined capitalization of the crypto industry more profitable and valuable than the Bank of America. Moreover, the altcoin has more or less similar record that will enable many cryptocurrencies to set historic records.

Ethereum Payback Period

The payback period of Ethereum will shorten. It will be around 5.6 months lesser than the previous one that has 9.4 months. This drop in the payback period will boost the use of the GPUs for the mining. That will result in the growth of GPU sales. He went a step further saying that the cryptocurrency price is increasing due to the institutional investing in some parts.

Steeves addressed it as a multi-faceted question as the investors are showing more interest due to the increasing value of cryptocurrency. He said that more institutional investments might be seen in the years to come.

Developed Technology

In the meantime, the cryptocurrency industry is coming with more developed technologies to inspire the users for more investment. Bitcoins Lightning Network is working on the ring signatures for making the transactions confidential. Ethereums Metropolis has also shown confidence in this industry.

In the current condition, it is difficult to predict the future of the cryptocurrency. He only advised the investors to understand the market condition and the value of the cryptocurrencies mined with GPUs for a couple of months.

With Ethereums 2000% price, many miners started purchasing Nvidia and AMD graphics to mine cryptocurrency this year. That inspired many to try their destiny in this industry.

Nvidia had $150 million boosts this year. All the credit goes to the demand of the cryptocurrency miners. The demand of the miners made many to believe that both the Nvidia and AMD will be concerned in the difficult market condition. However, the companies are in a safe and better position, as said by Barclay’s analyst Blayne.

Strengths Will Matter

When Ethereum will move to the proof-of-stake, miners will not get much profit as the payments will be verified in different ways. As the result, the demand might decrease. However, the upgrade will be pushed back to the end of the upcoming year, the price targets will not affect both AMD and Nvidia.

Curtis also expects that the companies will have to ride the cryptocurrency wave at least for one year to get the desired profits and to continue the trend of profits.

The analyst gives preference to Nvidia as it has more control over the artificial intelligence with the launch of new Volta processor. It is expected to expand the company’s lead in GPU market with the improved performance.