1. Increased demand for AMD GPUs caused by mining:
Bitcoin and other cryptocurrencies are generated by computers solving complex mathematical problems. As a result, miners worldwide have been increasingly using AMD GPUs to mine these coins, driving up demand for AMD hardware. To learn more, you can click here .
2. Reduced demand for Nvidia GPUs:
Nvidia is the largest competitor to AMD in the GPU market. However, unlike AMD, Nvidia’s graphics cards are not well-suited for mining cryptocurrencies.
As a result, demand for Nvidia GPUs has decreased as more miners switch to AMD hardware. This has caused prices for Nvidia GPUs to drop, with some models selling for less than their MSRP.
3. Increased demand for AMD CPUs:
While AMD GPUs have been in high demand due to mining, AMD CPUs have not been affected. This is because Bitcoin and other cryptocurrencies can be mined with CPUs and GPUs, while Litecoin (also mined with CPUs) cannot be mined with GPUs.
As a result, miners are using more AMD CPUs to mine Litecoins, which will drive up demand for these processors.
4. Increased demand for AMD motherboards:
The increased demand for AMD GPUs and CPUs has also led to increased demand for AMD motherboards. This is because miners need both GPUs and CPUs to mine cryptocurrencies, so they need motherboards to accommodate both.
As a result, many motherboard manufacturers have struggled to keep up with demand, with some models selling out ultimately.
5. Increased sales for AMD:
All of the factors mentioned above have resulted in increased sales for AMD. In fact, in Q3 2017, AMD’s revenue was up by a staggering 34% compared to the same period in 2016.
6. Reduced sales for Nvidia:
Nvidia’s sales have been reduced due to the increased demand for AMD hardware. In fact, in Q3 2017, Nvidia’s revenue was down by 7% compared to the same period in 2016.
7. Reduced stock prices for Nvidia:
Nvidia’s reduced sales and revenue have led to a decrease in its stock prices. Nvidia’s stock prices have been dropping since the beginning of 2017.
Negatives of bitcoin that can affect AMD
1. The volatility of bitcoin value could lead to large swings in AMD’s stock price:
The price of AMD’s stock could be drastically affected by bitcoin value volatility. For example, if the value of bitcoin falls quickly, AMD’s stock price is likely to fall as well.
Conversely, if the value of bitcoin rises rapidly, AMD’s stock price is also expected to rise. This could cause large swings in AMD’s stock price that may not indicate the company’s actual performance.
2. Bitcoin mining could use up a large number of AMD’s resources:
Bitcoin mining is a process that requires a lot of computing power. This could lead to AMD using up a significant portion of its resources on bitcoin mining instead of developing new products or technologies. This could harm AMD’s future growth.
3. Bitcoin mining could hurt AMD’s relationship with its partners:
Some of AMD’s partners, such as Intel, may not be happy about the company’s involvement in bitcoin mining. This could lead to strained relationships between AMD and its partners, ultimately hurting its business.
4. Bitcoin’s energy consumption could increase AMD’s production costs:
Bitcoin’s energy consumption could also lead to increased production costs for AMD. This could cause the company to lose money on some of its products, as it would not sell them at a profit. This could harm AMD’s bottom line.
5. Bitcoin’s energy consumption could lead to power shortages:
Bitcoin’s energy consumption could also lead to power shortages. This could cause AMD’s products not to work as well as they should or even prevent them from working altogether.
6. Bitcoin’s use of blockchain technology could be a security risk:
Bitcoin’s use of blockchain technology could be a security risk for AMD. This could allow hackers to gain access to sensitive information about AMD, which could be used to exploit the company.
Overall, the positives outweigh the negatives regarding AMD and bitcoin mining. While there are some risks associated with the process, such as the volatility of bitcoin’s value and AMD’s potential use of resources, the benefits appear to be considerable.
In addition, AMD’s stock prices have been increasing due to the demand for its hardware caused by bitcoin mining, and the company may be able to benefit from this trend for some time to come.