Korean electronics giant Samsung has decided to enter the Bitcoin mining hardware market. It has signed a contract with a Chinese Bitcoin mining hardware maker to supply it with chips and has already started mass production in January.
The company which is known for their smartphones and similar consumer technology products, it is now developing the semiconductor called Application Specific Integrated Circuit (ASIC) to mine Bitcoins.
Bitcoin mining is the process by which the transactions are verified and added to digital ledgers called blockchain; it is also a means through which a new Bitcoin is released. Mining in this context thus refers to solving complex mathematical problems- a task for which the owners of computers involved are rewarded with 'digital coins.'
Until now, Taiwan's TSMC was the only major processor manufacturer engaged in Bitcoin mining. Companies that mine Bitcoins have favored ASIC chips because of its fast and energy efficient hardware. The electricity costs in China is quite low that is why it has become the ideal place for mining crypto currencies.
According to Bell, a Korean language newspaper, "Samsung Electronics has been attracting attention not only for its foundry business but also for mass production of DRAM graphics card which is suitable for virtual money mining." In addition to mining Bitcoins, Samsung is also planning to enter GPU- based crypto currency mining space.
Therefore, Samsung would not only gain profits from the Bitcoin ASIC mining but also from the massive demand for GPU- based cryptocurrency mining.
Samsung's entry is expected to give some serious competition to the existing leaders like Beijing-based Bitmain, which supplies 70 percent of the world's bitcoin ASICs. Bitmain works in partnership with TSMC to produce silicon.
However, Samsung being the most significant chip maker is capable of matching orders of various sizes. Its entry into this domain could be a boon to the Bitcoin mining industry.