London, UK, 4 Sep 2021, ZEXPRWIRE – Crypto is no more a side hustle and people look up to it as a perfect profession to make huge amounts of profits. Today millions of young and elderly are actively investing in the area because today it would not be wrong to say that the world is running after digital coins that can’t be felt or caught. FinancialCentre Broker Vincent Renser says crypto might be some figure that you see on your screen but in reality, it takes a lot for these tokens to get there. Many miners, exchange platforms and even national authorities come together for you to own a fraction of a Bitcoin. All cryptos that are mined are not necessarily linked to a blockchain. Blockchain is a technology that works behind cryptos. Today many people think that crypto is all about Bitcoin but in reality, there are thousands of others. However, not all of them are as profitable and mainstream as Bitcoin. Bitcoin is the first-ever crypto that came forward and since then many have followed but none has managed to cross the mark of popularity that Bitcoin has crossed.
When you make your first-ever Bitcoin deal or hear of any transaction, tell yourself that so many complex processes must have come together to make it possible and one of them is Bitcoin mining.
Bitcoin mining is a process that helps new Bitcoins enter into circulation. Mining is critically important for Bitcoin’s to become available for people. It is not something very easy to perform but is undoubtedly highly profitable. Hundreds and thousands of people all around the globe make money through mining but this process has been facing a lot of criticism lately. For someone to mine bitcoins, one has to have access to high power computers. The process requires solutions to highly complicated mathematical equations that cannot be solved without any sophisticated computers.
Mining is costly and many people think it is “sporadic” when it comes to revenue generation however the miners have been attracted to this profession for a long time now. This is only a consequence of the fact that these individuals are rewarded in the form of tokens. This means that miners can earn lots and lots of tokens without having to spend any money. Every time a bitcoin miner succeeds, they add up a block of verified transactions to the blockchain. Because Bitcoin miners are making use of super-fast, highly complex and high-level technology, they need computers that can help them keep up. One of the integral parts of these computers is semiconductor nanometer chips.
Covid Attacking Semiconductor Chips
Semiconductor Chips are small-sized electric circuits that are made out of many other different components like wires and transistors. These chips hold the capacity to store different programs and data on several storage devices and computers. These chips have a diverse range of applications such as cars, computers, phones, etc. Many industries run on the availability of these chips and one of them is the crypto industry.
Covid has been disrupting lives for the past 2 years and it seems like the damages will be hard to recover from. Apart from health-associated issues, the pandemic led to tons of other problems and one of them is the global shortage of Semiconductor Chips. Mr Renser says that a small break in the supply chain of these chips means that all the industries that run on these chips will come to a halt, including the crypto industry. Bosch, a German technology and engineering firm made it clear the pandemic has been hard on the semiconductor supply chains which have been broken because countries like Malaysia are currently busy combating the deadly virus. These countries are manufacturing hubs of semiconductor Chips and with an uptick in the number of cases, the business is temporarily stopped. With manufacturing companies under attack, the world is looking up to other countries like Taiwan to help fill the gap but Taiwan’s economic minister said that the country is already doing its best to help control the growing shortage.
Huge Financial Losses Might Follow
If this shortage continues to grow at this rate and the manufacturers do not pick up the pace then there is a high probability that the entire crypto industry goes into a hiatus. This might not sound like something huge but in reality, even a small break can lead to massive financial losses which is something that the Covid stricken economies cannot afford. Mr Renser says that already the world is recovering from huge economic shocks and a shortage of these chips means that many industries might have to shut down for a while. In such a time we need to explore alternatives and see what countries can start manufacturing these chips immediately. He warned that if this shortage is not addressed then Bitcoin mining would be impossible and the rest can be imagined.
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