Samsung Enters The Bitcoin Mining Hardware Biz, Will Challenge Bitmainbr>
Samsung Electronics, the world’s second largest chip manufacturer, has confirmed it has a contract to supply an undisclosed Chinese bitcoin mining hardware manufacturer with semiconductors. The move continues the electronics giant’s move into the sector, following its recent agreement with Russian-based bitcoin mining hardware company Baikal.
The company completed development of semiconductor ASIC (Application Specific Integrated Circuit) for bitcoin mining last year and started mass production this month. What it means is that Bitmain, which has dominated the mining hardware sector, has its first real competitor.
The news arrives at a time when bitcoin prices are down, with many miners scrambling to sell in order to pay expensive electricity bills. The arrival of high-speed, energy efficient hardware could provide a welcome boost.
China is still the bitcoin mining base of the world, owing to its relatively cheap electriity. China’s Bitmain remains the world leader in mining equipment, but has to be wary of competing with an international conglomerate like Samsung, which has the ability to drive hardware prices down through sheer volume.