Cryptocurrency naysayer Peter Schiff recently managed to come up with a reason why Nvidia's astronomical rise is actually bearish for Bitcoin.
Schiff has noted that each graphics processing unit (GPU) produced by Nvidia contains some gold. However, it contains zero sats.
The comparison was meant to highlight Bitcoin's alleged lack of utility. Moreover, Schiff said that Bitcoin actually needs gold due to GPU mining:
“Bitcoin needs gold. Gold does not need Bitcoin. Nothing needs Bitcoin,” he said.
Gold is a crucial component of GPU microchips alongside some other metals like copper. Despite the high cost of the yellow metal, Nvidia uses it due to its conductive properties. It is worth noting that gold is widely considered to be one of the best conductors of electricity. Moreover, gold is also way more resistant to corrosion compared to copper.
Alex DovbnyaProminent investor Stanley Druckenmiller has already placed bets on AI and the gold mining sector while dumping traditional tech stocks.
On Tuesday, Nvidia made history by becoming the world’s biggest public company by market capitalization, surpassing Microsoft.
Nvidia is the main beneficiary of the ongoing AI boom. The Santa Clara, California-based company reportedly accounts for roughly 80% of all AI chips in data centers.
Prior to the AI craze, Nvidia was primarily focused on the gaming sector. In 2017, it also benefited from the surge in GPU demand during the cryptocurrency mining frenzy. However, the crypto mining demand was short-lived for Nvidia.
With its current market cap of $3.34 trillion, Nvidia exceeds the GDPs of all but five countries. Schiff predicts that only the U.S. and China will manage to stay above Nvidia in the near future.
This is not the first time that Schiff has taken a jab at Bitcoin’s apparent lack of utility. In April, he said that the flagship cryptocurrency offers only scarcity without utility.
Dan Burgin
U.Today Editorial Team
Vladislav Sopov