The market saw a major change in dynamics as Nvidia [NVDA] took over Microsoft [MSFT] as the most valuable firm. The chipmaker recorded a 3.6% surge in its stocks which pushed its market cap to $3.34 trillion. Microsoft’s market value was at $3.32 trillion. The latest rise comes from the increasing demand for its chips that are heavily being used in the AI sector. But this significant spike was believed to be bearish for Bitcoin [BTC].
Peter Schiff, a prominent critic of the cryptocurrency market pointed out how the graphics processing unit [GPU] that was produced by Nvidia had some gold in it. But it did not contain sats. The comparison was meant to highlight Bitcoin’s shortage of utility. Schiff further took a dig at Bitcoin and noted how BTC needs GPU mining which needs gold. He added,
“Bitcoin needs gold. Gold does not need Bitcoin. Nothing needs Bitcoin.”
Bitcoin around this time was trading at $65,348.61 following a daily drop of 0.15%. This downfall was surprising as the rest of the market was recovering from a recent hit.
Also Read: Nvidia Surpasses Microsoft as World’s Most Valuable Company
How Important is Gold in GPU Microchips?
GPU microchips include gold in addition to many other metals. This includes tungsten, tin, and other elements. The main reason these metals are used is because of their conductive qualities. Despite its high cost, the chemical characteristics of old have proven to be useful in chips.
Considering the growth rate of Nvidia in the past year, the firm doesn’t need to worry about employing gold. The company’s shares rose by over 170% throughout the year. In addition, the market cap of Nvidia took a mere 96 days to go from $2 trillion to $3 trillion. Other giants like Microsoft and Apple took 945 and 1,044 days respectively.
Also Read: Apple Stock Nears ATH: Will It Retake NVIDIA In Market Cap?