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Global GPU Shortage Slows Production of New Cryptocurrency Mining Rigs

In China where 60% of BTC miners are concentrated, things are not looking good. Chinese miners are facing a sharp rise in hardware costs. This was reported by the Reuters news agency.

Meanwhile, demand for Bitcoins is growing especially from institutional investors. It would be foolish not to take the opportunity to increase turnover and generate more profits.

The lack of GPUs is not just negatively affecting miners. The current situation with microchips is negatively affecting a wide range of products and industries. For example, the automotive industry, the production of computers, laptops and smartphones.

According to Gordon Chen, a spokesman for mining giant GMR, demand for hardware has followed Bitcoin's record growth. More and more miners want to enter the market, and current market players want to expand their resources.

 

 

The website belonging to the largest mining equipment manufacturer in China, Bitmain, states that all mining rigs are sold out. And this situation is not only with Bitmain products.

Miners are so desperate for additional hardware that they purchase hardware from the secondary market and order video cards that will only ship in late summer or early fall 2021. The head of Babel Finance Lei Tong talked about this in his interview.

Prices for used equipment have increased by 50-60 percent over the past year, and the cost of new mining rigs has doubled. This took the small business out of the game and opened up new opportunities for the big players.

Currently, about 60 percent of all mining capacities are concentrated in China. This is possible because of cheap electricity tariffs.