While some are shunning out cryptos (cryptocurrencies) as we’ve seen Stripe and somewhat Facebook do, some are amassing resources in order to invest in it. However, considering how controversial the technology is, this is quite expected.
The South Korean multinational electronics company, Samsung Electronics has revealed that it has ventured into the mass production of cryptocurrency mining chips. The chips known as Application-Specific Integrated Circuits (ASICs) are being specifically designed by Samsung to perfectly suit cryptocurrency mining.
Cryptocurrency mining is simply the validation of cryptocurrency transactions. Well, the definition is simple but that doesn’t mean the process is too. The validation of these transactions involves solving some complex mathematical problems in order to prove the authenticity and legitimacy of a transaction. Once successfully solved or validated, the miner gets some reward in form of cryptocurrency as well.
This move by Samsung obviously poses some serious threat to the already existing cryptocurrency mining chip manufactures, particularly Bitman. So far, Bitman is the leading cryptocurrency mining chip supplier, speculated to be supplying about 70% of the world’s bitcoin ASICs. However, due to Samsung’s size and reputation, this might change soon.
Samsung also sees a bump in its revenue in the near future due to this new development considering how much of a craze cryptocurrency mining has become. However, there is still the risk of cryptos being ‘bubbles that might burst anytime’ which Samsung needs to look out for. But hey, Samsung is big enough to take care of itself…literally.
Also, this should affect the price of cryptos seeing that a big company like Samsung is investing in them. The more such investments are made, the more confidence people have in cryptocurrencies and just like with fiat currencies, the greater the value thereof since the demand for them also increases.