Bitcoin Will Trigger Nvidia's Powerful Explo

https://www.thestreet.com/story/14290710/1/nvidia-is-going-t…

…The good times are far from over, since another massive wave is about to hit the cryptocurrency market that will fuel the next leg higher for the fancy chip stocks. This coming trend is the reason that NVIDA and AMD bulls should continue to love these stocks, even considering the lofty Bitcoin valuation and nosebleed all-time high prices.

That trend is blockchain. A blockchain is basically a decentralized public ledger in which transactions are made in Bitcoin or another cryptocurrency. I will spare you the technical details, but if you don’t think blockchain is the next wave, then just consider the recent news from Burger King. Burger King announced earlier this week that it was jumping into the cryptocurrency market by launching its own virtual coin called “WhopperCoin” in Russia…

I’ve been tracking Bitcoin:

average price during NVDA’s Q2: $2349
average price (7/31-8/31): $3847 (and rising as the quarter progresses)
today’s closing price: $4766

Last quarter NVDA had an estimated amount of about $250M in sales for cryptocurrency mining. That was about 11% of revenue. I would think that with Bitcoin prices much higher now that it will be likely for NVDA to have even more sales for cryptocurrency mining in Q3.

Chris

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Banking on Bitcoin is a documentary on Netflix that gives the history and the perspectives from “enthusiasts and experts”.

I watched it last night and recommend it for anyone that wants to understand Bitcoin better.

Maybe I’m missing something, but the limited supply of bitcoins seems to make this a massive Ponzi scheme. Those who bought coins early and sell just before the crash make out like bandits. There is no intrinsic value. There are alternative blockchain currencies that are cheaper. Eventually a cryptocurrency effectively without a limit (perhaps a very high limit) to the number of coins that will be created and adopted quickly, causing a crash in the value of other cryptocurrencies. I’m sure there are reasons why this hasn’t happened yet, but I believe it will at some point.

Enjoy,
Brian

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While blockchain technology seems potentially important for the future of financial transactions, I have a problem with the idea that the current value of a bitcoin is anything other than a bubble because there is no intrinsic value to justify this growth.

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