AMD is concerned about possible strict regulations against cryptocurrencies

AMD's report for the US SEC reports that cryptocurrency mining has greatly benefited them, but that there are factors that could have a negative impact, especially the very strict regulations on cryptocurrencies.

One of the largest graphics card manufacturers has begun to show concern about the increasing government regulation of the cryptocurrency market. This manufacturer is concerned that the demand for GPUs for mining could decrease, in the event that the regulations are extremely strict and could affect its business. We are talking about AMD.

This fear is included within the 'Form 10-k', which is filed annually before the Securities and Exchange Commission (SEC), of the United States, where one of the main manufacturers of graphics cards, such as AMD, highlights that there are many factors that could negatively impact the demand for graphics solutions for the cryptocurrency mining market. It has also been pointed out that the growth in demand for graphics chips for mining grew notably last year and that it had a positive impact on the number of products sold, leaving them out of stock on several occasions.

We believe that the surge in crypto asset prices and the introduction of new crypto assets have created a demand for our GPUs in 2017. The cryptocurrency market has been around for many years and its prices and popularity increased in 2017. The cryptocurrency mining operation it is typically performed using specifically designed Application Specific Integrated Circuits (ASICs). However, the introduction of new cryptocurrencies - such as Ethereum - has made GPU mining more efficient, providing a high rate of return on investment for the user.

AMD also highlights that there could be a change in the market, damaging the company, as soon as miners stop buying these systems and opt for other systems, such as ASICs for Ethereum, developed by Bitmain.

It should be noted that AMD is the only one that has developed special drivers that are capable of supporting twelve graphics cards, something that makes it more cutting-edge than its competitor, NVIDIA.

The two beginning manufacturers are based on the gaming market, which has been directly affected by mining, due to the lack of stock and the increase in prices, manipulated by many to make cash while possible. AMD and NVIDIA are not able to balance supply and demand and do not want to overproduce and keep the stock on the shelves, as it would mean millions in losses.

Jen-Hsun Huang, the CEO of NVIDIA, has praised cryptocurrencies, highlighting that they also have a usefulness on this phenomenon, as something certain and that everyone will be working with blockchain technology. It also highlights that there are large markets for virtual goods and services, in addition to certain communities, that are integrating cryptocurrencies into their businesses.