China Faces a Shortage of Chips for Mining Farms

Contents

China faces a shortage of chips for mining farms

China faces a shortage of chips for mining farms
CONTENT

  • China covered the shortage of chips for mining devices

  • The next deliveries of mining farms are available for August / September

  • Disruptions in the mining industry have already taken on an international scale

International consortium of news organizations, developing transparency standards.

The Chinese mining market is on the brink of a crisis due to a shortage of microcircuits used in the production of equipment for the extraction of cryptocurrencies

China may stop production of mining devices due to shortage of chips.

China faces a shortage of chips for mining farms

Writes about this Reuters, referring to local industry representatives.

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ASIC manufacturers cannot deliver orders on time due to the growing demand for microcircuits. Alex Ao, VP at Innosilicon, a supplier of mining equipment, has already announced that there are not enough chips for the production of mining farms.

Rush demand

Lei Tong, Managing Director of Financial Services at Babel Finance, says the market is being worsened by the outrageous demand for devices in North America. In these conditions, many manufacturers of mining machines are ready to deliver devices only in August or September..

A sales manager at Chinese mining company Jiangsu Haifanxin Technology told Reuters that secondary market prices in China have jumped 50-60% over the past year, and prices for new hardware have more than doubled..

Not only China is experiencing a shortage of mining devices and video cards amid a record jump in prices for cryptocurrencies.

China faces a shortage of chips for mining farms

BeInCrypto editors reported, that Russia was also covered by a shortage of video cards.

China faces a shortage of chips for mining farms

According to Nvidia’s calculations, the overestimated demand for video cards will remain at least until the end of the first quarter of 2021.

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Mining is profitable again

Gordon Chen, co-founder of crypto company GMR, believes the scarcity is caused by the rise in cryptocurrency prices. Since the beginning of the year, activity in the digital currency market has skyrocketed. Bitcoin tests new all-time high, approaching $ 42,000.

Mining profitability. Source: bitinfocharts.com

The profitability of bitcoin mining has already returned to the level of the summer of 2020 and is about 0.23 BTC per day when using a mining device with a capacity of 1 Tx / s.

Read also: Children’s camp near Minsk will become a mining center

How Norilsk has become a new center of attraction for bitcoin miners – read in a special material from BeInCrypto.

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