A partnership that may make mining profitable again

Crypto coins exist as an incentive for mining the blockchain. Guess who else makes money on mining? Companies that sell mining equipment: NVidia and AMD.

A partnership that may make mining profitable again

A couple of days ago two large corporations who command vast R&D budgets, have announced a pretty important partnership. Those companies are AMD, one of the world leaders in producing CPUs and GPUs and known to ship the products that have the best dollar to value ratio, and Tesla, the leading electrical vehicle company and now also a deep neural network company. And the news is that they are announcing a partnership to work together on AI chips both for training in powerful data centers, and for inference of pre-trained models inside the car.

ethereum-price-over-one-year

Ethereum price over 1 year

But why do we care what those american corporations are doing? How does it impact the government-free internet money? In order to answer that let's remind ourselves that most of the cryptocurrencies today are Proof of Work, and rightfully so, it's the only secure way for a ledger to exist, because you put your trust in the physics laws and not in what the richest say. And proof of work cryptocurrencies need to be mined, and mining happens on GPUs.

nvidia-stock-price

Nvidia makes only GPUs. The hot growth in 2017 is partially attributed to ethereum miners

What this partnership means is that in order to fulfill Elon Musk's vision of a fleet of driverless cars two years from now, AMD needs to start producing cheap and powerful GPUs, along with the specialized code to make use of them, today. At the end of the day this should impact the bottom-line for cryptocurrency miners positively.

amd-stock-price

AMD wants a piece of the mining hardware revenue as well, announcing better and cheaper GPUs to be released soon

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