The growth of the crypto sector has seen the creation of new growth opportunities for different firms. Electronic firms are among the key beneficiaries of the growth, due to the increased demand for software and hardware necessary in the cryptocurrency mining business. Today, more electronic organizations including TSMC and most recently Samsung, are becoming part of the mining enterprise.
Why ASCI Chips?
The increased demand for cryptocurrencies has also increased the demand for mining software and other equipment. In a recent move to tap into this market, Samsung has started the mass production of ASIC or Application Specific Integrated Circuit chips. These are chips that are used in the mining business for the computations in cryptocurrency mining, and in the solving of Bitcoin blocks. The chips are often preferred to other mining devices that use GPUs or CPUs as they are faster and do not consume a lot of power.
The mass production of ASIC comes after the South Korean electronics firm entered into a partnership with Taiwan-based firm TSMC, which is the supplier of mining software to Bitmain, a global mining company controlling seventy percent of the market share. Samsung is also moving to cement its position in the cryptocurrency business in South Korea, which is regarded as among the top five global markets for mining hardware and software.
Other Multinational Firms in the Cryptocurrency Industry
Samsung is not the only global multinational to enter the mining business. Earlier in the month, Eastman Kodak also announced a cryptocurrency ICO that is seeking to come up with a blockchain system that will be used to secure rights from digital photographs, while ensuring that the photographers receive their royalties. The firm also revealed a mining rig during its 2018 CES. The stock price of the Eastman Kodak rose to 89% which is the highest stock price rise from March 2017. This was despite criticism of the move by experts and industry players.
Samsung interest in the cryptocurrency market was first registered in October last year when the firm unveiled a new and more experimental rig that was made up of forty repurposed Galaxy S5 smartphones, that were able to be given a new life in an environmentally-friendly manner. This, according to Samsung, was set to extend the life of discarded phones.
In December 2017, the electronics firm also signed a chip-making-deal with Baikal, a Russian corporation whose key activity is the production of Bitcoin mining hardware. According to the Korean Herald, Samsung was expected to supply ASIC chips for the firm’s new Bitcoin mining hardware. Mass production of the chips was scheduled to start in January this year.
How the Move Affects Samsung
According to analysts, the partnership was still in its early stages, and it was difficult to predict if there would be any profit increase for Samsung. Additionally, industry watchers suggested that Samsung is known to play safe and only partner with well-known players in the electronic industry, such as Apple and Qualcomm. The recent move is seen as the firm’s conviction in the notion that the cryptocurrency market is set to continue its rise.
Image Credit: Deposit Photos
What do you think about Samsung’s new venture into the cryptocurrency mining market? Share your views or comments below.