Equipment shortage started to occur in China, which has become the capital of Bitcoin mining. According to Reuters, the decrease in the number of devices resulted in higher equipment prices.
More than 50 percent of the hash rate in the Bitcoin network comes from giant mining facilities in China. Increasing competition among miners, hardening of block production and increasing number of miners; it caused a shortage in the market.
Not enough chips left to produce the mining device
According to Reuters, companies selling products to bitcoin miners started to have problems with production. “We don’t have enough chips left to build the mining device,” said Alex Ao, manager of a firm called Innosilicon. used the expression.
These companies use the chips they use to manufacture the mining device from Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co. It supplies from such giants. Alex Ao said that they started producing for individual consumers and not enough chips for miners.
Race started between miners
The change is felt not only on the supply side, but also on the demand side. Increasing bitcoin price means miners earn more money. The fact that bitcoin went up to over $ 30,000 has driven more people to mining. Gordon Chen, founder of a company called GMR, spoke to Reuters and summed up this situation as follows:
“If the price of gold rises, you go and buy more shovels. When the milk price goes up, you want more cows. ”
This growth in demand has triggered a global race among miners. Lei Tong, one of Babel Finance executives, in North America; Wayne Zhao, one of TokenInsight executives, drew attention to the increase in demand in the Middle East.
Prices almost doubled
Big firms started competing with each other to find mining equipment. Statements made by expert names show that there is a 50 percent or 60 percent price increase in mining devices. This increase in price is considered to be ‘natural’ in line with the current conditions.
According to Raymond Yuan, owner of Atlas Mining, one of China’s largest mining companies, this change in the market will create a distinction between corporate / individual investors. Yuan stated that individual miners who fail to comply with these conditions will be eliminated from the market.