Bitcoin Mining businesses are affected due to global shortage of Bitcoin Mining Rigs
Bitcoin Mining businesses are affected due to global shortage of Bitcoin Mining Rigs

Bitcoin Mining businesses are affected due to global shortage of Bitcoin Mining Rigs

By Greenchic | Investing and Trading | 8 Feb 2021


 

bitcoin, btc, bitcoin mining
 Shortage of Bitcoin Mining Rigs for Bitcoin Miners to mint new Bitcoins

Bitcoin demand has obviously been high of late, which reflected in BTC’s rising price, this has led to a demand for more Bitcoin mining machines, which are used by Bitcoin miners to mine Bitcoin more quickly and effectively. We all are hearing about the Bitcoin supply crisis, likewise there is a supply crisis for Bitcoin mining machines; bitcoin mining rigs that are specialised equipment used by Bitcoin miners to mint new Bitcoins. This in turn is due to a global shortage of chips that are needed for production of these Bitcoin Mining rigs.

 Massive increase in cost of Bitcoin mining rigs

Bitmain, one of the world’s largest manufacturers of Bitcoin rigs have had all their Bitcoin Mining rigs sold off now. With shortage of Bitcoin mining rigs, the cost of Bitcoin mining machines have shot up too. Bitcoin Miners now are willing to pay a huge premium to acquire a second hand Bitcoin mining machine, such is the demand for Bitcoin Mining machines.

Large purchases of Bitcoin Mining machines by giant Bitcoin mining companies of North America

Earlier, Bitcoin Mining players were mostly concentrated in China, however, large scale Bitcoin mining players have come up in North America and the Middle East. These large bitcoin mining establishments based in North America, have purchased most of the Bitcoin Mining rigs which has squeezed the supply of Bitcoin mining rigs to China.

Small Bitcoin mining players not able to sustain themselves with high cost of Bitcoin mining rigs

Small Bitcoin miners are no longer able to survive on their own in the business, with the cost of Bitcoin Mining machines being costly now. Add to this, their earnings are also affected due to the Bitcoin halving procedure that took place last year, which reduced the Bitcoin miners’ rewards by half.




Greenchic
Greenchic

I love to write on things I am passionate about - environment, citizens activism, crypto and life in general. I am a cat enthusiast, nature lover. I am excited to engage at the Publish0x platform by reading and writing crypto and other content here.


Investing and Trading
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