Is Bitmain's ASIC so amazing that it dares to snatch the GPU business from Nvidia and AMD?

The demand for virtual currency mining has led to a shortage of GPUs. It is rumored that Bitmain will build dedicated ASIC chips to replace GPUs.

Despite the market noise, the price of Bitcoin is back to $11,000.

According to Barron's, currently virtual currency miners mostly use GPUs to mine Ethereum, and it is rumored that Bitmain intends to develop dedicated ASIC chips to grab business. Mitch Steves of foreign RBC Capital believes that the price of Ethereum has skyrocketed from $10 at the beginning of 2017 to $1,000 now, and the possibility of the emergence of dedicated mining chips is much higher than a year ago.

Steves pointed out that if Bitmain really sells chips dedicated to Ethereum, the mining efficiency will be far better than GPU, which will steal business from Nvidia and AMD.

Morgan Stanley analyst Joseph Moore's report stated that Bitcoin has continued to rise, and the outside world generally believed that the demand for Bitcoin mining has driven GPU sales. In fact, Bitcoin switched to ASIC chips several years ago, and GPU buyers mainly come from Ethereum.

Susquehanna analyst Christopher Rolland reports that mining is helping GPUs more than Nvidia and AMD expected, and the two companies face huge risks.