Recently, the Global hash rate of the premier crypto Bitcoin reached its all-time high. However, chip shortage could spell trouble for the Bitcoin mining industry. The shortage of chip supply worldwide has already disrupted major industries. Unfortunately, it looks like the Bitcoin mining industry is also on the cards as well.
Last year, many bitcoin mining operations are making deals in order to pre-order thousands of ASIC bitcoin mining rigs. An ASIC or application-specific integrated circuit is a purpose-built device, specifically designed for performing a certain operation. In the case of cryptocurrencies, an ASIC is specifically developed for crypto mining.
ASIC manufacturers such as Microbt, Bitmain, and Canaan are selling batches of new models in thousands. They majorly sell these to operators running data facilities. On the other hand, ASIC mining rigs are hard to obtain due to the global chip shortage.
According to a U.S Department of Commerce survey of 150 companies, the firms only have five days of supply left. Usually, these firms have 40 days of supply on hand.
Gina Raimondo, the U.S. secretary of commerce, said in a press release:
“With sky-rocketing demand and full utilization of existing manufacturing facilities, it’s clear the only solution to solve this crisis in the long-term is to rebuild our domestic manufacturing capabilities.”
Along the other side of the globe, China is planning to develop a sourcing strategy for semiconductors in Shenzhen. However, its issues with the United States have caused the development of the America Competes Act of 2022. The controversial bill gives ‘Unchecked and Unilateral Power’ to ban crypto transactions.