Google co-founder: Ethereum mining is driving a “technological renaissance”

Google co-founder Sergey Brin believes Ethereum mining plays a central role in the recent “computing boom” that is helping to drive a “technological renaissance.”

“We are truly in the midst of a technological renaissance, an exciting time where we can see applications in virtually all of modern society,” Brin wrote in a letter to investors.

He explained:

“Several factors have come into play in this boom in computing. The first, of course, is Moore’s Law… The second factor is higher demand, stemming from advanced graphics in games and, surprisingly, from GPU proof-of-work algorithms found in some of today’s leading cryptocurrencies, such as Ethereum.

Google's crypto ad ban to take effect in June

Although Brin is in awe of Ethereum’s clever working algorithm, his company has taken drastic measures against cryptocurrencies. In March 2018, Google announced that it would ban cryptocurrency ads, which took effect in June 2018, citing the need to protect consumers from scams.

Perhaps unsurprisingly, the price of Bitcoin plunged 10% on the day the ban was announced. Google’s advertising director Scott Spencer defended the decision, citing the need for caution when dealing with the opaque crypto market.

“We don’t know the future of cryptocurrency right now, but we’ve seen enough consumer injury or potential for consumer injury that this is an area we want to approach very cautiously,” Spencer said.

Cryptocurrency mining is growing by leaps and bounds

Cryptocurrency mining has skyrocketed over the past 18 months. The mining craze has even led to a shortage in the GPU market. According to recent data, cryptocurrency miners purchased 3 million GPUs worth about $776 million in 2017. And 2018 seems to be catching up to those numbers.

In January 2018, Samsung, the world’s largest semiconductor manufacturer, began producing ASIC chips for Bitcoin mining. At about the same time, Kodak revealed that it had licensed its name to mining hardware manufacturers to produce Kodak-branded miners.

Meanwhile, Sergey Brin’s bullish outlook on Ethereum is backed by financial advisory firm deVere Group, which has set a price target of $2,500 for ETH by the end of 2018.

Nigel Green, CEO of deVere, said: “Ethereum is expected to rise significantly this year, possibly reaching $2,500 by the end of 2018, and further increases in 2019 and 2020.”