According to Reuters, Chinese Bitcoin miners suffer from a global lack of chips required to build towers to mine BTC and other cryptocurrencies.
Meanwhile, active demand for Bitcoin is increasing, especially from financial institutions.
BTC mining isn’t the only area of trouble
Miners are not the only sector with a shortage of computer chips in this market. The current situation with microchips affects a wide range of products and industries such as automobile manufacturing, PCs, laptops and smartphone manufacturing.
According to Gordon Chen, co-founder of the crypto asset management fund and mining company GMR, as Bitcoin was on the rise in December of last year and continued through January, the demand for mining equipment is that more participants want to enter the market and existing players want to expand their mining resources. for increased.
Bitmain towers sold, miners looking for used rigs
Bitmain, one of China’s largest mining equipment manufacturers, has sold all of its mining equipment, according to the company’s website.
Reuters is referring to a high-profile executive at Babel Finance, who said crypto miners are desperate for more equipment, buying second-hand machines and ordering equipment to be delivered late this year or early autumn.
Equipment trader Jiangsu Haifanxin Technology’s sales manager Li said that the prices of second-hand mining equipment rose by 50-60% last year, and the rates of new mining equipment doubled.
Raymond Yuan, founder of Atlas Mining, believes that the increase in the cost of mining equipment has left small miners unemployed. His company owns one of China’s largest mining companies and offers great opportunities to big players.
Chinese Bitcoin miners losing leadership in the industry
TokenInsight COO Wayne Zhao told Reuters that Bitcoin miners outside of China are rapidly expanding their business.
According to him, China was home to 80 percent of Bitcoin miners thanks to low-cost electricity, but now China contains only 50 percent of the total Bitcoin mining in the world, as Bitcoin has reached its all-time high of $ 42,000.