Intel Chip Challenges Reign of China's Bitcoin-Mining Firms
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Bitcoin mining, which is earning rewards in Bitcoin by using computers to secure the cryptocurrency’s network, has become a lucrative business amid the surge in the price of Bitcoin in recent years, enriching the rig makers along the way. The mining industry raked in $15 billion in revenue in 2021, more than double the previous year, according to research from The Block.
Intel’s entry could weaken the Chinese manufacturers’ pricing power and offer better maintenance services given the company’s close proximity to the miners in North America, industry participants said. The region dethroned China as the world’s Bitcoin mining hub as Beijing banned crypto mining last May.
“Having a U.S.-based manufacturer with the size, scale and credibility like Intel is fantastic for the entire crypto industry,” said Dave Perrill, chief executive of Eden Prairie, Minnesota-based Compute North, which provides Bitcoin miners with data centers to operate their machines. “Competition is a good thing.”
NVidia has prospered because GPUs are deployed in mining cryptocurrencies. That has been one of the primary factors in supporting the outsized valuation for the company despite the fact its primary business is in gaming and datacentres. Intel directly exploring the market for crypto mining, as well as launching its own suite of GPUs last month is an attempt to steal market share.
NVidia continues to ease back following the bounce from the region of the 200-day MA in January.
Intel is bouncing from the lower side of a four-year range.
Bitcoin is increasingly a lead indicator for risk assets. The token rebounded early today and that lent some support to futures. However, both assets turned lower shortly after the US open.