Cryptocurrency mining company Bitmain based in China has just unveiled a new cryptocurrency mining chip that the company claims to rival AMD and Nvidia.
The chip makers, which operate with an air of secrecy, unveiled the chip which is used for mining special digital currency ethereum, a development which would most likely worry AMD and Nvidia. The chip called “Antminer E3” is an EtHash ASIC miner which experts believe could cause the demand for graphics cards drop.
In a tweet, Bitmain announced the Antminer E3 on Tuesday as the world’s most powerful and efficient EtHash ASIC miner. It also said that the chip would not be available in China and order is limited to only one miner per user. Additionally, Bitmain revealed that it will begin shipping its ethereum mining rig in mid to late July for $800 each.
We are pleased to announce the Antminer E3, world's most powerful and efficient EtHash ASIC miner.
Ordering limit of one miner per user and not available in China.
Limited stock, order here now: https://t.co/Zfw3afjJHs#antminerE3 pic.twitter.com/SjHu2eUThp
— BITMAIN [Not giving away ETH] (@BITMAINtech) April 3, 2018
Bitmain is known leader in the Bitcoin mining industry with its specialized ASIC mining chips which according to the company is more efficient and less power consuming that mining with computer graphic cards. AMD and Nvidia are major graphics cards manufacturer, therefore according to market experts, this new Antminer E3 development could hurt their market.
Last year, Bitmain made much profit from mining chips as Nvidia, and it is estimated that its revenue is generated by selling Bitmain powered mining rigs. Analysts at Wall Street believes that Bitmain will also dominate the ethereum cryptocurrency mining market which is a cause for concern.
The process of Cryptocurrency Mining
Cryptocurrency can be mined using graphics cards with AMD and Nvidia chips embedded in them to mine new coins. During this computational process, the hardware of your computer will calculate mathematical equations that are far from simple. The coins can then be stored for some time for future price appreciation. According to data obtained by Coinbase, Ethereum digital currency rose more than800 percent over the last 12 months.
AMD and NVIDIA shares affected by the release of Bitmain cryptocurrency mining chip
As a result of Bitmain’s chip entering the market, Susquehanna a major player in the crypto-mining market has lowered the potential price market for AMD and Nvidia shares. The firm explains that mining activities account for 20 percent of AMD’s share while that of Nvidia was 10 percent.
Solomon Sunny is the market reporter for Smartereum, one of the global leaders in Ethereum, blockchain and currency news. He produces technical price updates on digital currencies and writes recent developments about blockchain.