World’s Largest Bitcoin Mining Country is affected by Global Chip Shortage
When the cryptocurrency industry was launched, it did not have many supporters or miners. However, there were some countries that managed to catch on quickly and started their mining activities before the rest of the countries jumped.
With the passage of time, the entire world realized the importance of mining Bitcoin (BTC). The entire cryptocurrency industry has benefited a lot from the growth and vast adoption of Bitcoin (BTC). There are many countries that now regret not becoming a part of it when it was a perfect time. Now, Bitcoin (BTC) is hitting all-time highs and as per many analysts, Bitcoin (BTC) will manage to hit $100k per BTC market by the end of 2021.
China is among the countries that were the quickest in adopting the crypto-blockchain technology. The country is now responsible for mining more than 34% of the Bitcoin (BTC) that is being mined globally. The country has been doing this for a very long time and has no intentions of losing its spot.
However, the situation has started turning bad for the largest Bitcoin (BTC) mining country. The country’s Bitcoin (BTC) mining ability seems to have been choked due to the shortage of chips all around the world.
With the rise of the cryptocurrency industry throughout the world, more and more people are now trying to mine Bitcoin (BTC). As a result, the prices of hardware and mining rigs are soaring all across the world and companies are facing difficulties keeping up with the demand.
One of the major factors behind the shortage of the chips is the involvement of the enterprises and major institutions. Towards the end of 2020, the cryptocurrency industry has gained mass adoption from mainstream institutions.
These institutions have now started mining Bitcoin (BTC) alongside key miners that have been in the trade for a very long time. With the involvement of big companies, the rigs and hardware are running short due to mining farms being created outside China.
According to the vice president of one of the top chip manufacturers “Innosilicon”, the company is currently facing many issues meeting the demands. The VP Alex Ao stated that there has been so much demand from the crypto-users that they have run out of chips to supply.
The Bitcoin (BTC) miners require some very high-end systems and rigs in order to verify Bitcoin (BTC) transactions for mining. Most importantly, the graphics cards used in these rigs come without outputs and are made solely for mining purposes.
It is expected that one of the largest GPU makers in the entire world ‘Nvidia’ will soon resume mass-producing graphics cards for mining purposes. Towards the end of the year 2020, it was announced by Nvidia officials that they are not producing graphics cards for mining due to a lack of demand.
Now that the demand has increased and China is running short on chips, there are chances Nvidia will start producing these cards.