TL;DR Breakdown
- Chips’ scarcity affects other market players.
- Bitcoin Miners keen on getting more mining equipment.
- Mining Gears’ Price has been hiked.
Reuters stated that Bitcoin Miners in China are experiencing a scarcity of computer chips needed to construct rigs for the purpose of minting Bitcoin and other cryptocurrencies.
Bitcoin miners and other market players suffering from scarcity of Chips
Apart from Bitcoin miners, there are other actors in the market who are experiencing scarcity of computer microchips. The present condition with chips has affected a broad spectrum of companies which includes some production companies. Industries affected by the dearth of chips include the automobile industry, information and communication technology companies, and so on.
Gordon Chen, the co-founder of a crypto-financial management and BTC mining firm, stated that the need for more mining rigs has skyrocketed as the number of fresh players entering the market continues to increase, while the present participants are looking to increase their mining resources.
One of the biggest Chinese Bitcoin gear manufacturers has ran out of stock for its BTC mining gear as reported by the company’s website. A top-ranking leader of Babel Finance, Lei Tong stated that cryptocurrency miners are intensely seeking additional mining equipment such that they are already buying used equipment which will be supplied to them in the later part of 2021.
Massive increase in the price of mining gears
As stated by a sales officer at rig merchant Jiangsu Haifanxin Technology, Li, there is over a 50% increase in the price of used mining equipment in the last one year and the price of the new mining equipment has doubled. Raymond Yuan, the owner of Atlas Mining claimed that the price hike of mining gear is chasing struggling miners out of the trade. Yuan has one of the biggest mining firms in China.
China’s position as the world’s top most BTC mining country is under contention. Wayne Zhao stated that China used to have 80% of BTC miners owing to the low electricity cost.
