Bitcoin and Nvidia were negatively affected

Economist Peter Schiff, a prominent cryptocurrency critic, highlighted Nvidia's astronomical rise and how it is negative for Bitcoin.

Schiff points out that every GPU produced by Nvidia contains some gold, but they do not contain any satoshis.

This comparison is intended to show the lack of benefit of Bitcoin compared to using gold.

Schiff explained that Bitcoin relies on gold primarily due to the use of graphics processing units (GPUs) in cryptocurrency mining.

He added:

Gold is an essential component of GPU microchips, along with other metals such as copper.

Despite the high cost of gold, NVIDIA uses gold because of its excellent electrical conductivity properties, as well as its higher corrosion resistance compared to copper.

It is worth noting that on Tuesday, Nvidia made history when it became the largest public company in the world by market value, surpassing Microsoft.

Nvidia is a major beneficiary of the ongoing AI boom, accounting for about 80% of all AI chips used in data centers.

Before the spread of artificial intelligence, Nvidia was mainly focused on the gaming sector.

In 2017, the company benefited from a spike in demand for graphics processing units (GPUs) during the cryptocurrency mining boom.

However, this demand did not last long.

With a current market capitalization of $3.34 trillion, Nvidia has surpassed the GDP of all but five countries.

Schiff predicts that only the US and China will be able to stay above Nvidia in the near future.

For the record, this is not the first time Schiff has criticized Bitcoin for its lack of clear utility.

Last April, Schiff said that Bitcoin offers nothing but scarcity with no real benefit.