AMD is one of several mining corporations in the crypto industry. The company is likely experiencing heavy competition from bitcoin mining giant Bitmain, headquartered in China. The venture is said to own roughly 50 percent of mining power and has been accused of creating what was ultimately a centralized industry.
In the explainer page, AMD has a lot of positive things to say about blockchain and suggests that it can be applied to virtually any enterprise or department such as medicine and healthcare, insurance, cybersecurity, digital advertising, supply chain management, and obviously, finance and banking.
The company writes:
With the flexibility of blockchain, we are one step closer to a world of efficient data access and secure transactions, making intermediaries that inevitably introduce vulnerabilities and dependencies but are necessary in conventional transaction models obsolete… We are working with existing ecosystem partners to bring blockchain compute solutions to market for a large variety of use cases and exploring opportunities with new and innovative platforms using blockchain.
While the page is no doubt informative, it does take on a relatively “salesy” tone and suggests that blockchain would be a welcome addition anywhere. Unfortunately, the only industry where blockchain has seemingly made any headway is finance, and about halfway through the page, the structure changes to discuss the company’s latest mining equipment, which is now available for purchase.
One source suggests that Bitmain has lost some steam in the mining industry after a long period of industry domination, and that competitors are doing everything they can get in on the action. This could likely explain AMD’s latest punch, but even with Bitmain out of the way temporarily, the company is still going to face heavy resistance from technological bigwigs like Samsung, which has been designing and marketing electronic equipment for years.
Recently, Samsung expressed interest in cryptocurrency mining, which could make things even more difficult for businesses like AMD.
Overall, the mining sector has suffered greatly over the past year. While stock prices surged during bitcoin’s peak last December, they’ve quickly lost momentum as cryptocurrency values have continued to plunge throughout 2018.
In addition, Fundstrat analyst Tom Lee has commented that many miners are leaving the industry, as the costs of extracting new coins are no longer even with crypto prices.
Could AMD become a leader in the bitcoin mining business? Post your thoughts and comments below!
Images courtesy of ShutterStock