Fun

Bitcoin Miners Strain Under Semiconductor Supply Crunch, Second-Hand Mining Rig Prices Soar

News Feed - 2021-01-30 09:01:20

Bitcoin Miners Strain Under Semiconductor Supply Crunch, Second-Hand Mining Rig Prices Soar


Bitcoin mining rig manufacturers are dealing with a semiconductor supply crunch according to regional reports stemming from China. There’s been a global semiconductor supply shortage and it’s affecting nearly every type of business in the supply chain that manufactures cars, PCs, laptops, smartphones, and cryptocurrency mining devices. Moreover, the recent shortage has invoked the demand for second-hand and older generation mining rigs. Semiconductor Shortage Complicates Mining Rig Manufacturing


Currently, the world is dealing with a semiconductor supply crunch which has been spurred by the aftermath of Covid-19 and the lockdowns. Automobile makers, PC manufacturers, smartphone production, and almost every electronics manufacturer under the sun is dealing with this issue. For instance, reports detail that auto giants like Toyota Motors, Nissan, Ford, Volkswagen, and more have been chomping at the bit to obtain microchips from suppliers like TSMC. On January 27, 2021, the financial reporter from China, Iyke Aru, reported on how the microchip supply shortage is “taking a toll on Chinese bitcoin miners.”


“The unique case of mining is complicated as a result of the coincidence with the increasing demand for Bitcoins and the associated expansion of the mining industry.” Aru details. Moreover, Aru also noted that because of the shortage “Chinese cryptocurrency miners are already scrambling for second-hand machines just to keep up with industry requirements.” Second-Hand Machines, Older Generation Rigs, and ‘Too Many People Going for the Same Foundries’


Meanwhile, manufacturers and industry executives are hoping for other solutions to appear. During the second week of January, Nvidia revealed some cheaper types of semiconductors for computers that could possibly help the supply crunch, according to reports. Patrick Moorhead, principal analyst at Moor Insights and Strategy told Marketwatch in an interview that the shortage has impeded businesses working with semiconductor foundries. “There is not enough capacity at TSMC and at Samsung,” Moorhead explained. “There are too many people going for the same foundries.”


The scramble for second hand and older generation mining rigs has not just affected China but second markets in Europe and the U.S. have seen increased prices. For example on Ebay, there are hundreds of results for pre-owned S9s and even people selling bulk packages as well. Mining rig prices can be 2x to even 10x higher than what they were before the crypto economy’s bull run. The quantity of second-hand mining machines is far larger when it comes to older generation mining rigs, as new releases are much harder to obtain. There are far fewer listings on secondary markets and direct from the manufacturer deliveries are sold out until spring 2021.


What do you think about the semiconductor shortage taking a toll on the bitcoin mining industry? Let us know what you think about this subject in the comments section below. Ukraine to Set up a Large-Scale Crypto Mining Data Center in a Nuclear Power Plant MINING | 3 hours ago Crypto User Builds a Mining Rig in the Back of His BMW Hybrid Car With Six Graphic Cards MINING | 2 days ago Tags in this story Bitcoin mining, China, Chinese Mining Rig Manufacturers, Chip Shortage, Cryptocurrency, Iyke Aru, Microchips, mining, Mining Industry, Next Generation Miners, Older Generation Miners, Second-Hand Miners, Semiconductors, shortage, Sold Out, Supply Crunch


Image Credits: Shutterstock, Pixabay, Wiki Commons Spot-markets for Bitcoin, Bitcoin Cash, Ripple, Litecoin and more. Start your trading here. Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

BitMEX co-founder must face suit over ‘God Access’ trading desk, judge rules
Jesse Coghlan2 hours agoBitMEX co-founder must face suit over ‘God Access’ trading desk, judge rulesDistrict Judge Andrew Carter said Benjamin Delo “was central” to an alleged scheme to use customer information t
Revised Bill Suggests Prison Time for Russian Crypto Miners Evading Taxation
Revised Bill Suggests Prison Time for Russian Crypto Miners Evading Taxation A draft law designed to regulate crypto mining in Russia introduces harsh penalties for miners failing
Topps Plans to Auction Rare 1952 Mickey Mantle NFT Card Minted on Ethereum
Topps Plans to Auction Rare 1952 Mickey Mantle NFT Card Minted on Ethereum The American firm that produces Bazooka chewing gum, candy, and collectibles, Topps has announced the com
Bitcoin hodlers moved $1.7B into ‘accumulation’ wallets during the BTC dip
Tom Mitchelhill6 hours agoBitcoin hodlers moved $1.7B into ‘accumulation’ wallets during the BTC dipA record 27,700 Bitcoin was sent to ‘accumulation addresses’ on April 16, as the price of Bitcoin tumbled below
5000 BTC Giveaway Scam: Chamath Palihapitiya, Elon Musk Not Giving Away Bitcoin
5000 BTC Giveaway Scam: Chamath Palihapitiya, Elon Musk Not Giving Away BitcoinThe number of bitcoin giveaway scams has been increasing rapidly amid rising prices of cryptocurrencie
William Suberg11 hours agoBitcoin traders hope to ‘buy the dip’ as BTC price heads toward $30KBTC price action teases a slow comedown to support, with Bitcoin dip-buyers at the ready.3365 Total views3 Total sharesLis
Crypto gains reached $37.6B in 2023 — Chainalysis
Ana Paula Pereira7 hours agoCrypto gains reached $37.6B in 2023 — ChainalysisCrypto realized gains remained consistent throughout 2023, with only two consecutive months of loss in August and September.8184 Total views1
World Bank Warns of Global Recession, Stagflation — ‘This Is the Sharpest Slowdown in 80 Years’
World Bank Warns of Global Recession, Stagflation — "This Is the Sharpest Slowdown in 80 Years" The World Bank has warned of a possible global recession. “For many countri
Tom Blackstone12 hours agoConsenSys releases ‘fuzzing’ tool to test smart contract vulnerabilitiesDiligence Fuzzing lets developers introduce random and invalid data points to find security flaws.5722 Total views3 To
Coinbase Sees Rising Altcoin Interest As Traders Prepare For Big Moves
Este artículo también está disponible en español. A popular cryptocurrency exchange platform foresees an outsized market rally for altcoins in the upcoming weeks after Do
Bitcoin Open Interest Dropped Significantly – Investors Cautions Amid US Election Week?
Este artículo también está disponible en español. Bitcoin has faced significant volatility and uncertainty as it approaches a pivotal week, with tomorrow’s U.S. electio
Maduro Orders Venezuelan Bank Closures Amid Coronavirus Scare
Maduro Orders Venezuelan Bank Closures Amid Coronavirus Scare In order to combat the coronavirus outbreak in Venezuela, President Nicolás Maduro has ordered the entire cou