Last week I wrote an article explaining how the current boom in crypto could be compared to the gold rush.
"During the California Gold Rush fortunes were made and dynasties were forged, although not from mining gold. The most successful businessmen were those who sold the mining equipment. They made a killing selling pickaxes, shovels, wheelbarrows and jeans. The impact was so great it can be seen generations later."
The most successful companies were not the miners but those who sold the mining equipment.
This lesson can also be applied to the current mining of cryptocurrency.
The companies that would benefit most today are....
These companies all produce GPUs, CPUs or other components used in crypto mining.
It seems the article was somewhat prophetic, as this week there are several articles circulating the web about "GPU shortages"
Check out this article from Motherboard
"As PC Gamer recently reported, it appears as though the altcoin mining boom had created a global GPU shortage. The question, however, is whether this drought has just begun, or if gamers and would-be miners will be out of luck for the foreseeable future."
New GPU demand is having a major effect on the aforementioned companies.
Unlikely Bitcoin play: Digital currency 'mining' is boosting demand for AMD's graphics cards
"There may be another way for investors to play the Bitcoin and the surging cryptocurrency trend. "
"The dramatic jump in digital currency prices this year is driving demand for AMD graphics cards, according to the company."
""The gaming market remains our priority. We are seeing solid demand for our Polaris-based offerings in the gaming and newly resurgent cryptocurrency mining markets based on the strong performance we are delivering," an AMD spokesperson wrote in an email to CNBC. "
"Cryptocurrency miners use graphics cards from AMD and Nvidia to "mine" new coins, which can then be sold or held for future appreciation. AMD traditionally has a better reputation for mining cryptocurrencies."
If you are an investor it may be wise to learn form history, remember that sometimes those selling the mining equipment make more than the miners!
If you are a gamer......well you might just be SOL for awhile.
(This is not financial advice)
