NVIDIA says cryptocurrencies are useless to society.

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Nvidia, a reputable chip maker based in the US, has expressed its view that cryptocurrencies do not “bring anything useful for society,” despite the companys powerful processors selling in large quantities in the crypto sector. Michael Kagan, its Chief Technology Officer., has maintained that processing power such as the artificial intelligence chatbot ChatGPT is more beneficial than mining cryptocurrency.

Michael Kagan, Chief Technology Officer at NVIDIA, explicitly states that the whole crypto boom didn't “bring anything useful for society.” When he took an interview from The Guardian. This statement is born from the current AI boom where NVIDIA hardware sits at the heart of AI technology like ChatGPT.

According to reports, the companys CEO, Jensen Huang, also said that “cryptocurrencies are not real.” Huang went on to explain why he believes cryptocurrencies are useless to society. He stated that cryptocurrencies are not widely adopted, they are not widely used for transactions, and they have not proven to be a reliable store of value. Furthermore, Huang argued that the volatility of cryptocurrencies makes them unsuitable for long-term investing or use in everyday transactions.

NVIDIA‘s stance on cryptocurrencies could be seen as surprising, given that the company is a major player in the GPU market. Graphics processing units (GPUs) are critical components for mining certain cryptocurrencies, such as Ethereum. NVIDIA’s GPUs have been in high demand due to their efficiency in mining Ethereum.

This perspective is not unique to NVIDIA. Many other industry leaders have also questioned the long-term viability of cryptocurrencies. For instance, Warren Buffett famously called Bitcoin “rat poison squared” and warned investors not to touch it. Similarly, JPMorgan CEO Jamie Dimon called Bitcoin a “fraud” and threatened to fire any of his employees who traded it.

Despite these criticisms, cryptocurrencies continue to be a hot topic in the tech world. Some believe that they will eventually become a widely accepted form of payment, while others argue that they are just a speculative bubble waiting to burst. Only time will tell which perspective is correct.