The market saw a major shift in momentum when Nvidia [NVDA] take over Microsoft [MSFT] to become the most valuable company. The chipmaker recorded a 3.6% stock gain, pushing its market capitalization to $3.34 trillion. Microsoft’s market value is $3.32 trillion.
The latest surge comes from growing demand for chips that are being used heavily in the AI sector. But this significant spike is said to have a bearish impact on Bitcoin [BTC].
Peter Schiff, a famous critic of the cryptocurrency market pointed out that the graphics processor [GPU] Made by Nvidia, it has a little gold in it. But it does not contain sats. This comparison is intended to highlight Bitcoin’s lack of utility. Schiff took a deeper dive into Bitcoin and noted how BTC requires GPU mining and requires gold. He added:
“Bitcoin needs gold. Gold does not need Bitcoin. Nothing needs Bitcoin.”
Bitcoin this time around was trading at $65,348.61 after a daily decline of 0.15%. This decline is surprising given that the rest of the market is recovering from the recent decline.
How important is gold in GPU chips?
GPU chips include gold along with many other metals. This includes tungsten, tin and other elements. The main reason these metals are used is because of their conductive properties. Despite the high cost, the old chemistry has proven useful in chips.
Considering Nvidia’s growth over the past year, the company doesn’t need to worry about its use of gold. The company’s shares have increased more than 170% over the course of the year. Additionally, Nvidia’s market capitalization took just 96 days to increase from $2 trillion to $3 trillion. Other giants like Microsoft and Apple took 945 and 1,044 days, respectively.
