Would a Chinese Chip Ban Impact Bitcoin Mining?

River -

A Game of Chess

  • U.S. officials recently restricted chip exports to China from two of the largest U.S. chip manufacturers, Nvidia and AMD
  • The announcement marks an escalation of U.S. concerns over the fate of Taiwan, where most chips are manufactured
  • This could force a response from China in the coming months
  • Most major Bitcoin ASIC manufacturers are Chinese. As a result, China’s response could impact Bitcoin mining if it affects the production of their mining rigs

What could this result in?: As tensions continue to grow between two countries that develop cutting-edge technologies, there may be an increased risk of a potential retaliation, because Bitcoin miners are powered by Chinese chips. If there is a retaliation in the form of Chinese chips not being exported to the U.S., it could make new mining rigs harder to acquire.

The Myth of "Wasted Energy"

  • Nearly 60% of the electricity used by miners to power the Bitcoin network is sustainably sourced, according to the latest quarterly report from the Bitcoin Mining Council
  • To put this number in perspective, only 31.4% of all energy used in the U.S. comes from renewable sources
  • Since mining became institutionalized eight years ago, the huge spike in efficiency (5,814%) is driven by Bitcoin’s exponential price growth over the same period

Our thoughts: Energy is a key input cost of Bitcoin mining that affects the profitability. The increase in efficiency is a sign that Bitcoin mining is growing by sourcing energy from renewables, or places where energy is otherwise wasted and thus cheap to use. If Bitcoin mining was not part of the equation, this energy would be wasted.

Where Can You Actually Mine Bitcoin?

  • There are a handful of companies that offer mining products - River is one of them
  • You can buy miners through the River app or at River.com and get BTC deposited into your account daily
  • We support buying miners through your LLC, business account, trust, family office, or personal account
  • From start to finish, River handles the hosting, servicing, and maintenance
  • Enjoy the lowest hosting costs in the industry with no hidden fees

Our thoughts: It’s easier than you think to get started mining Bitcoin. Knowing where to start is intimidating. There are many companies to choose from that do a great job, but we (of course) think we’re the best. Learn more about River Mining.