Bitcoin spike appears the market is not uncommon, the last week of bitcoin and opened the fall mode. According to Coinbase data, 21 am Beijing time bitcoin prices fell below $4100 this week, the cumulative decline of 30%, and the highest since September last year, the price is low. Plunge this round of bitcoin for some small and medium-sized mines but was even sold its liquidation in accordance with the price of scrap metal sold on the pounds. The important provider of NVIDIA mining machine chip and bit, nature is not a good news, they will worry about it?
Bitcoin mining machine suffered mine”
Coinbase data show that more than $16000 bitcoin prices earlier this year, after several rounds of rise and fall, beginning in early August to mid November prices are hovering around $6400, but last week it plunged nearly 38%, the lowest since record 13 months. Bitcoin crash not only once again sparked heated discussion, bitcoin mining machine also suffered mine, some small and medium-sized mines but mine resale liquidation.
CCTV financial reports, one with more than 2000 Taiwan ore miners in the stock market these days for a total of 30 more to dig bitcoin bitcoin, according to the current price is not high electricity. The miner said: “this is Yu Yue to dig more pay, just off the phone.” Another has more than twenty thousand sets of M3 ore miners said that in today’s currency price and force, a year ago the market price over million of its price has been reached because of the shutdown, the second-hand store also No one shows any interest in. According to the information display, after some small bitcoin mine mill hill of general waste heap in the yard, even being in accordance with the price of catty to sell scrap metal.
In this regard, many analysts believe that bitcoin slump and bitcoin cash “hard fork”, bitcoin cash is one of the bitcoin currency bifurcation, which solves the problem of low transaction efficiency due to the bitcoin block smaller capacity. Last week, bitcoin cash again “hard branch”. Investors are worried that the bitcoin bifurcation will lead to the scarcity of variation, existing bitcoin value will be diluted. Of course, this also led to a decline in the price of bitcoin.
NVIDIA shares encrypted currency drag
Not only is bitcoin, the impact of the global currency fell in other encryption bitcoin also suffered different degrees of decline, data show that the current global market capitalization of $82 billion encryption currency, than in December last year the highest value has fallen by 75%. But whether it is the encryption currency soaring or plunging, will ultimately affect the performance of chip manufacturers.
Earlier this year, due to the digital encryption currency hot, NVIDIA GPU retail price rose sharply and the emergence of tight supply situation. In the NVIDIA 5 month at 2018 years 4 months 29 days in the first quarter earnings report, NVIDIA disclosed for the first time to obtain 2.89 billion dollars in sales revenue from digital encryption currency chip, the total revenue of 32 billion dollars 9%. Although higher than analysts had expected $200 million, but some analysts believe that, due to the rapid growth but the fluctuation of digital encryption currency business in greater reliance, so the NVIDIA shares fell 3.3% after the earnings announcement.
According to the Lei Feng network to understand, Q2 earnings, NVIDIA encryption currency related business performance is not good, and extended to Q3. One analyst Susquehanna said, using GPU were mining is no longer so profitable, especially the value of money has started to shrink encryption.
In November, NVIDIA announced as of October 28th 2019 fiscal third quarter earnings, Q3 revenue and net profit compared to the same period last year there were 21% and 47% growth, but did not meet analysts’ expectations, then the stock price plummeted over 16%. NVIDIA CEO Jen-hsun Huang said in the earnings conference call, NVIDIA’s recent performance reflects the prosperity of crypto currency channel after the excess inventory, we did not expect prices to fall to spend longer, slower growth in demand, this is the cause of short-term excess inventory. NVIDIA until recently realized the seriousness of the problem, but Jen-hsun Huang stressed that the next holiday shopping season in NVIDIA’s game business will behave very well.
In addition to promising revenue contribution to the largest gaming business, NVIDIA is more optimistic about the positive role in the development of artificial intelligence for its future development. Jen-hsun Huang Q3 in the interpretation of the earnings report said: “artificial intelligence is at an alarming rate in the global development, creating a record revenue for our data center platform.” Therefore, in yesterday’s Nvidia GTC China conference, Jen-hsun Huang first introduced the first domestic application of real-time ray tracing technology of network game “against the current cold”, ray tracing implementation framework of maximum progress since 2006, NVIDIA Turing CUDA based on the issue of GPU (Turing) and the new RT Core GPU. Jen-hsun Huang then introduced the GPU acceleration platform HGX-2, T4 cloud cards, GPU accelerated open source platform Rapids, finally introduced the NVIDIA Jetson AGX Xavier AI high hopes for the computing platform. Of course, these new products have been Chinese enterprise support.
Therefore, NVIDIA admitted the adverse effects of encryption of short-term money on its produce, but the future is more optimistic about the NVIDIA AI change brings opportunity.
Bit, positive transformation to AI
With NVIDIA’s main business is not to encrypt different currencies, currency, vital bit encryption. According to the bit, the data published in the prospectus, 2015 to 2017, its bit sales were 108 million, 215 million, 2 billion 263 million U.S. dollars, accounting for the proportion of total revenues were 78.6%, 77.3%, 89.9%. Although in encryption of the top spot in the market and its currency, but bitcoin prices plummeted in the market, policies and regulations, competition will directly affect the bit, revenue and future.
According to Lei Feng network understanding, after the success of the encryption machine on currency, bit, 2015 have found a deep learning computing chip is a new opportunity. Bit, co-founder of Zhan G Group believes that deep learning computing and data are very large, but the calculation function and complex data is relatively limited by rules, Moore’s slow, deep learning should take the special chip size (ASIC).
ASIC chip is a bit, strengths, and deep learning chip has a broad market prospect. Data show that the number of camera 2017 worldwide reached 140 billion, the future 5 will maintain the growth rate of more than twice the composite. These 24 hours of uninterrupted work of the camera need real-time data analysis, puts forward higher requirements on chip count force. In addition, HIS predicts that 2035 will have 1000 million self driving cars, assuming every second every car produced about 100 MByte data over 100T FLOPS can calculate per second per vehicle, which requires more than 1000 Exa FLOPS operator. So, deep learning both performance and power advantages of the chip will have a broader market.
You can see a bit, the second quarter of 2017 launched the first AI chip, which is also the Google TPU world and a dedicated ASIC chip to accelerate the calculation of tensor. The first quarter of 2018, bit, launched the second generation of AI chips, October, announced the bit AI chip terminal. Bit, based on the AI development board, AI terminal chip AI module, AI and AI had great force cloud chip embedded AI server, mini machine, 3D intelligent terminal based on face recognition, to show its in the field of AI cloud + client layout and the latest progress in the study of chip depth.
According to Lei Feng from the third party to understand data bits, the first generation AI chip power consumption than the same period of other domestic AI chip has reached almost 4 times the way ahead, with the generation of Cambrian chip. It can be said that this is a bit, AI transformation of a good result, of course, a bit, is still active in the transition to AI, said Tang Weiwei, director of the bit product strategy announced the two generation AI chip cloud: “cloud our AI chip not only in 9 months of fast iteration, is also actively promoting industrial cooperation and project landing.”
Non authoritative statistics
Fast iterative bit AI chip, cannot do without the large investment, according to the prospectus, 2015 to the end of 2017 bit, R & D expenses were 5 million 700 thousand, 16 million 600 thousand, $72 million 600 thousand, the first half of 2018 increased to $87 million. Not only is the R & D costs continue to increase, AI ASIC chip R & D personnel also occupy a very large proportion. 2018 840, the first half of the bit full-time engineers, including 366 specializing in product design, 298 dedicated AI ASIC chip, 176 dedicated machine and accessories development.
At the same time, in its related products, is still active in the layout of the bit. 11 June 8, bit, officially released equipped with self-developed 7Nm chip ant mining machine. Although 7Nm mills at release time than the encryption of money market accounts for second of the city Jia Nan Yun Chi, but see, bit 7Nm machine from the data still have the advantage.
Lei Feng (public No.: Lei Feng network) summary
From the current situation, the creation of a crypto currency did not produce social profit, is more speculation, this is perhaps the crypto currency appears important reason for soaring prices. NVIDIA and bit, in different extent benefited from the crypto currency boom, just like the miners to select GPU mining is not the best choice, on the development of NVIDIA’s encryption currency may also be short-lived, after skyrocketing demand caused GPU shortage and rising prices, the money market fell encryption also affected the NVIDIA share price performance. NVIDIA is really optimistic about the future computing revolution brought by AI, specifically the positive role of cloud computing, automatic driving and robot development brings.
Bit, although due to the success of digital currency boom, but success in this field, you see, the bit chip deep learning opportunities in three years ago, and released the first AI chip in 2017, in the AI chips can be seen in its efforts to accelerate the transformation of AI in 2018. As for the future of the AI chip revenue accounted for the proportion of total revenue, bit, and will be able to achieve the two main business collaborative development remains to be seen.
There is a very crucial point, what you think is the digital currency value?