Is There A Bitcoin Supply Shortage?
Utilizing comparisons with previous cycles can help us better understand the current exchange supply situation.Is there a bitcoin supply shortage on exchanges? Yes and no. The bitcoin balance on exchanges has received a lot of attention during this bull run because the change in these balances sticks out. In previous bull runs, what can be observed is that, often, with bitcoin’s price increasing, the bitcoin balance on exchanges has increased. This can be seen in Figure 1 where Glassnode has compiled the addresses of spot exchanges holding bitcoin and aggregated them. Even with bitcoin’s....
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Bitcoin mining rig manufacturers are dealing with a semiconductor supply crunch according to regional reports stemming from China. There’s been a global semiconductor supply shortage and it’s affecting nearly every type of business in the supply chain that manufactures cars, PCs, laptops, smartphones, and cryptocurrency mining devices. Moreover, the recent shortage has invoked the demand for second-hand and older generation mining rigs. Semiconductor Shortage Complicates Mining Rig Manufacturing Currently, the world is dealing with a semiconductor supply crunch which has been....
When demand from these two sources alone exceeds the entire supply of newly minted bitcoins, expect serious supply pressure to follow.
While Bitcoin’s hashrate has been coasting along above 175 exahash per second (EH/s) and recently reached an all-time high, a global shortage of semiconductor chips could slow the growing industry. The shortfall of supply worldwide has disrupted major industries, and manufacturers like Taiwan Semiconductor Manufacturing Company Limited (TSMC) have seen stocks sink in value. At the same time, application-specific integrated circuit (ASIC) manufacturers are dependent on these chips. Ongoing Semiconductor Shortage Creates Skyrocketing Demand, US Bureaucrats Want to Strengthen American....
Bitcoin is at the lowest level of float supply in the last four years, since the price increased 21 times in just 12 months.
Fears of a major semiconductor chip shortage have started to make headlines again as the chips power nearly everything from new cars, phones, computers, and a myriad of other items. Reports stemming from Malaysia show that semiconductor manufacturers are dealing with an uptick in Covid-19 cases and this is plaguing the supply chain. Moreover, the machines that secure the Bitcoin network are also powered by these chips, and semiconductor prices might increase by over 20% in the near future. Semiconductor Shortage Could Cause a 10-20% Rise in Chip Costs On August 24, the well known German....