Bitmain Unveils New Cryptocurrency Mining Chip That Could Be A Threat To Nvidia and AMD
Chinese company Bitmain which makes cryptocurrency mining hardware has unveiled its latest mining chip which may be a source of concern for Nvidia and AMD.
The Chinese firm particularly deals with mining systems for Ethereum cryptocurrency. Analysts have predicted that the launch of Bitmain’s upcoming miner called “Antminer E3” will most likely affect the demand for AMD and Nvidia graphics cards. This is because the upcoming Antminer E3 packs a powerful punch and the Chinese manufacturer has advertised it as the most efficient and powerful EtHash ASIC miner.
Bitmain made the announcement through its Twitter handle on Tuesday, stating that: "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,"
Bitmain also revealed that it plans to start shipping the new miner in July this year and that one unit of the Antminer E3 will go for roughly $800. Analysts believe that this price point and the efficiency offered by this miner should make it a more compelling purchase that will give Nvidia and AMD graphics cards a run for their money. Cryptocurrency enthusiasts have been using GPUs from the two American manufacturers to mine Ethereum. However, Bitmain is threatening to take over the Ethereum market with its ASIC chips just like it has been dominating the Bitcoin mining scene.
Bernstein Research claims that the profits made by Bitmain from the sale of its ASIC miners match the level of profit made by Nvidia and AMD. This means that it should surpass them once the new miner goes into sale. If Antminer E3 happens to be as efficient as claimed, then it will most likely steal the thunder from the two American companies, translating to low sales for the two GPU makers.
AMD and Nvidia have not responded to the announcement and although they are expected to experience lower demand for their graphics cards, it will benefit their main market. The main target market for the two companies is the gaming industry and so gamers should benefit from Bitmain’s competition. This is because less demand for graphics cards means gamers will be able to access these cards with more ease. Last year was a particularly tough one for gamers trying to secure graphics cards because they were either out of stock or prices were hiked due to heavy demand from cryptocurrency miners.