Samsung is a big dog entering the cryptocurrency space.
The biggest Cryptocurrency Chip manufacturer has been Bitmain with their AntMiner provided by a Taiwanese manufacturer (TSMC) . AntMiner is a processing Chip based on Application-Specific Integrated Circuits (ASIC) Technology.
Mining is a process where new cryptocoins are produce through solving mathematical computation and algorithm, the miner is the rewarded with a digital currency or coin. This means a computer with a good processing or GPU could mine just fine. In the early days of mining GPU was effective, but the mathematical problems become more difficult. Fast forward to a few years later, then can the birth of ASIC, ASIC is custom design for one purpose, to mine cryptocurrency.
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ASIC was very effective at solving the SHA256 algorithm used to confirm transactions on the Bitcoin blockchain, outperform traditional GPUs. This meant ordinary Joe’s mining bitcoin in his basement was out of the mining race in a big way.
This ASIC processing chips, gave Bitmain so much clout in the mining space, their mining pool, that is Antpool and BTC.com control 29% of bitcoin global mining hash power.
But could their dominance in the market be threatened soon? Time will tell.
Samsung Joins The Party
Samsung is a top dog in the processing chips business, albeit for computers. The South Korean company have as of last year out performed another giant Intel Inc in the processing chip business. Hard to believe isn’t it?
And it forecast strong demand for its forthcoming Galaxy S9 smartphone, which is due to be revealed on 25 February.
Samsung Electronic’s fourth quarter net profit totalled 12.3tn won ($11.5bn; £8.1bn), which was roughly in line with analysts’ expectations.
In recent months, a shortage of high-end GPU cards has pushed up their prices, making the rival Asic technology even more appealing.
Samsung has completed development of its own Bitcoin-related Asic chip last year and began mass production earlier this month.
One expert said Samsung’s move represented a bet that Bitcoin’s rise in value does not represent a bubble that is about to burst.
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With Samsung journey into the Cryptocurrency, should we expect other big companies to join in? Is bitcoin going to get main stream? I believe this is a question on the minds of other crypto enthusiasts.