Cuban Predicts Chips Will Be the Next Crypto, CME Group Lists Futures Contracts

Billionaire investor Mark Cuban has predicted that chips will become the next cryptocurrency. This prediction comes as the CME Group prepares to list futures contracts for GPU rental costs on October 5, marking a significant shift in how processing power is valued and traded.

Cuban made his statement on Twitter, saying only 'chips as an asset class will be the new crypto.' However, the comparison between chips and cryptocurrencies is more than just a matter of scarcity. As Cuban notes, advanced processors are currently in short supply, with buyers bidding hard for every available unit, much like Bitcoin's early days.

The parallel has its limits, though. While tokens settle on public ledgers and trade around the clock, chips sit in data centers, wear out, and lose value as newer models are shipped.

Nvidia's quarterly data center revenue provides further evidence of this trend. The company booked $75.2 billion in data center revenue for the quarter ending April 26, up 92% year over year. This surge in demand is driving a shift towards commoditizing processing power, with CME Group listing futures contracts that will allow traders to lock in budgets months in advance.